propertytalk Live! - University charges could hit landlords in pocket

propertytalk Live! - University charges could hit landlords in pocket

University tuition fee increases could have a major impact on private landlords with properties used by students.

From next year, English universities will be able to charge as much as £9000 for certain courses.

But nationwide tenant eviction and rent collection firm Landlord Assist fears the buy-to-let sector could be a casualty of the policy because many would-be students could be priced out of Higher Education.

A decline in student applications could lead to a situation where there aren’t enough students to support the buy-to-let market in certain areas of the country and this will impact on landlords’ income.

At the same time the rise in tuition fees may make students more cash-aware than before, leading to greater competition for cheaper properties. Subsequently landlords will be under increasing pressure to reduce their rents to attract tenants.

Graham Kinnear, Managing Director at Landlord Assist, said: "It appears that the vast majority of universities, including former polytechnics, are proposing to charge the maximum in terms of tuition fees and this will have a disincentive effect for those considering entering Higher Education from 2012 onwards.