A market is opening up for luxury student properties in London as wealthy international students have been prepared to pay almost £67,000 a year to live in premium apartments.
London has seen an influx of new, expensive high-spec studio flats to cater for this market, leading landlords to channel their investment into the luxury student sector.
Research from StudentTenant.com found an increasing number of properties tailored for this sector, with the most impressive costing its tenants a staggering £1,300 per person per week. The apartment in question comes fully furnished with two interconnecting reception rooms with living and dining space, a modern eat-in kitchen, guest cloakroom and two double bedrooms with en-suite marble bathrooms. Located in Mayfair, the property also comes with a private terrace overlooking Hyde Park, and is equipped with a home automation system allowing the tenant to control lighting, heating and other gadgets from their mobile phone.
According to StudentTenant.com, of the half a million students living in private rental accommodation in the UK, almost half come from overseas. However, students living in London are eligible for a maximum loan of just £11,002, causing concern that as landlords move towards the luxury international student market there may become a dearth of affordable homes.
Managing director Danielle Cullen said: ‘We have seen a huge growth in luxury accommodation in recent years, designed to appeal to the wealthiest students across the globe who are willing to pay rent upfront. It’s great to see property developers offer the option to live the life of luxury for those who are studying at university, but the problem we’re seeing is that luxury properties are gradually pushing up rental prices for students across the UK. Landlords are seeing the potential for luxury student properties and how much rental income they’re generating, and they want a piece of it. More and more landlords are opting for the luxury label and student pockets are getting hit as we’re seeing a fall in affordable student accommodation, particularly in central London.’