According to a recent private rented sector (PRS) survey conducted by specialist buy-to-let lender, Paragon Mortgages, despite a marginal decline in student numbers predicted for the UK in the coming academic year, those landlords who do let property to student tenants are feeling positive.

Research by BDRC Continental of members of the National Landlords’ Association reinforced the impression of landlords’ burgeoning confidence in the student market, with 70% saying that they rate the prospects for future investment in student property as good.

Of those surveyed in the PRS Trends Survey, 71% judged student tenants good or excellent when it comes to paying rent on time. More than half of landlords (53%) also rated student tenants’ behaviour as good or excellent.

The most negative responses were in regard to the maintenance of property, with just 38% rating this as good or excellent, and only 24% rating the state of the property as good or excellent at the end of the tenancy agreement.

In this survey landlords were asked their views on the potential impact of tuition fees rising to up to £9,000 a year: 57% said that in their view there had been no change in demand for student lets.

John Heron, managing director of Paragon Mortgages, said:

“The student rental market is one of the largest specialist components of the private rented sector. Letting student property is appealing to landlords as they usually benefit from higher than average rental yields as rooms tend to be let on an individual basis. There are generally lower levels of arrears too as student tenancy agreements benefit from parental guarantees.

“Landlords who let a proportion of their portfolio to students are feeling positive about the market and their experience of letting to students continues to be good. This is an area of the private rented sector which will continue to thrive as long as the demand for university places continues.”