A lack of international student applications following the Brexit vote has let to a drop in demand in the buy to let sector.
The student rental sector is traditionally the target area of choice for those considering property investment, as demand often readily exceeds supply. However, following Britain’s decision to leave the EU, UK universities are experiencing a dramatic fall in applications from European students.
The data, which comes from UCAS, has revealed that UK applicant figures also have dropped to £469,490. This marks a total drop of 5 per cent year on year. However, students applying from the EU are down in numbers by 7 per cent, the first fall in nearly ten years.
StudentTenant.com has argued that the student rental sector could miss out on around £383m over the next three years, based on average rental expenditure of £4,834 per year, should the downward trend in applications continue
Several leading academics have warned MPs that a hard Brexit could have significant negative impact upon higher education in the UK, causing irreparable damage to the reputation of UK universities.
Manager director of StudentTenant.com, Danielle Cullen, said: ‘In the midst of all the snap election hype and what Brexit deal the UK will end up with, naturally landlords are worried about the uncertainty surrounding the student lettings market. It is a concern that applications to UK higher education are falling in nearly all areas, and some EU students are being put off over Britain’s choice to leave the EU. The huge fall in university applications will have a significant impact on student rental property demand. Landlords are the ones who will feel the strain the most, as supply could well outgrow demand for student properties as we see fewer students at universities. This is a complete contrast to what we have been seeing in the student market recently, with an undersupply of properties for a long time in a lot of areas. In the upcoming election, the political parties must recognise this and put forward a plan to ensure Britain remains welcoming to international students. Not just for the student rental market, but to attract the world’s best talent to British universities.’