Students are increasingly feeling the pinch as high demand for rental accommodation causes rents to grow at their fastest rate for three years, a study from easyroommate.co.uk revealed.
The average cost of renting a room in a student flat share across the major British university towns has risen 8.5% over the past year from £329 per month to £357, fuelled by an increase in demand for student digs. Rents are increasing at a much higher rate compared to that seen between 2011 and 2012 when rents rose 5%.
This increase has led some parents to consider purchasing a house for their children whilst at university rather than pay high rents. Then in order to recoup some of the costs and help pay some of the tuition fees they are renting the unused rooms to their fellow students. This could prove to be an excellent way to help fund the large costs involved in getting a son or daughter through university.
Of course, you do not need to have dependants at university in order to benefit from the growing number of people applying for university places. With the current level of interest rates and increasing rents the yield from this type of investment is looking good.
Post courtesy of Mortgage Introducer.