How Was the Student Property Investment Market Impacted by Covid-19?
Despite many students opting to move back home during Covid-19, the student property investment market experienced a record-breaking year.
A report from Savills found that £5.77 billion was spent on purpose-built student accommodation in 2020 – the highest-ever amount. This came alongside an 8.4% rise in UCAS applications for 2021.
Savills states this is a sign that investors have remained confident in UK PBSA, with rent collection and occupancy rates in student accommodation resilient compared with other housing sectors.
You can learn more about student property investment by reading our 2022 guide.
What About the Rental Market?
The initial impact on private landlords and the rental market during the Covid-19 pandemic wasn’t as optimistic as the impact on UK house prices.
A report from the National Residential Landlords Association released in March 2021 found that 7% of tenants – around 840,000 – had built up arrears during Covid-19.
Around 18% of these arrears were over £1,000 and around 11% of renters are now unemployed because of Covid-19.
This naturally had an impact on landlords, with 60% of NRLA members losing income as a result of the pandemic, with 14% of landlords losing 20% of their income.
We’re now in December 2021, however, and the rental market has recovered well.
In April 2021, it took just 8.9 days to rent a property, down from 31.9 days in April 2019.
Rental demand is so high, in fact, that Manchester has fewer than 500 available rental properties for the first-time ever.
This has led to a surge in rental prices, with the UK average rent reaching an all-time high of £1,061 in September 2021, according to HomeLet.
The Full Picture: March 2020 to Present Day