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Education policy “must do better” on student lettings

Property expert warns rising tuition fees and falling A-level results threaten “considerable damage for student accommodation policy-makers haven’t even considered”

National education policy could be having a hugely harmful impact on the housing relied upon by over 100,000 North East students – that’s the fear of one local lettings expert.

Figures released by university admissions service UCAS have shown a 10% year on year fall in the number of students going to university – with national student numbers falling by as many as 51,000 since the trebling of tuition fees.

Last week’s A-level results also saw the percentage of top grades fall for the second year in a row – suggesting that more and more students are struggling to achieve the grades they need to get into university.

Although website Accommodation for Students this week predicted reported a 3.1% rise in student rents in the coming academic year, their results reported that rents in the North are static or falling.

Ajay Jagota of KIS Lettings, who manage properties for over 700 landlords from branches in Sunderland, South Shields, North Shields, fears the combination of these factors could be “potentially very toxic” for landlords, students and communities alike.

He said: “The North East is home to 110,000 students at five fantastic universities – all of whom need homes throughout their studies. If we’re to attract and retain the best young minds, the right housing is vital.

“My fear is that rising tuition fees and falling grades could have considerable damage on student accommodation policy-makers haven’t even considered.

“The situation is potentially very toxic. Less students means less tenants and if landlords can’t make ends meet they may be forced out of the student lettings market, which puts pressure on the supply of properties, forcing up rents for remaining students.

“I know many people have limited sympathy for landlords and students alike but this isn’t just bad news for them, it could be bad news for communities too. Not only are students vital for the local economy now and in the future, student accommodation can play a vital role in regenerating communities, bringing run down properties back into use and supporting new and independent businesses.

“Universities are already increasingly partnering themselves with institutional investors to develop industrial-scale student accommodation which arguably have much less of a positive role in communities. Small-time landlords can’t compete and current education policies are not helping.”

This was posted in Bdaily's Members' News section by Ajay Jagota .