Saturday, Mar 21, 2009
Wasn't the rising student population going to save BTL?
BBC News: Student hardship pleas increase
There has been a big increase in the number of university students across the UK applying for emergency hardship funds. About 50% of students work during term time, using the money to pay for tuition, accommodation, food and socialising. "We have got a 25% increase in applications to the access to learning fund than this time last year and in the last month we have had an almost 50% increase in inquiries about extra funding." The problem is compounded by the lack of part-time jobs. Twice as many students are looking for term-time jobs than in previous years - far more than the number of jobs available. "For some students it's absolutely critical that they work during term time. It's the difference between them being able to complete their course or dropping out."
5 Comments
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1. Mick said...
No, it was never going to save BTL, because so many massive blocks of student accommodation are coming on stream, that the manky buy-to-let shared houses can't find tenants anymore.
2. drewster said...
Well done Mick. Speaking to students, 90% of them would rather live in purpose-built accommodation than share a grotty student dive miles away from campus with housemates who are likely to be messy and noisy. Landlords will have to cut prices drastically to compete against that.
3. inflation is eating my savings said...
It gets worse. A lot of the new student digs being built are actually sold (sorry were actually sold) to BTL types "as an investment". Some idiotic universities tempted in BTLers with rent guarantees. Said universities are now selling off other assets (or taking on debt) to make good their liabilities.
More recent new build digs have not been bought. Not surprisingly, the rents are much much lower......
4. will said...
Could this spell the end of the great University con? Too many graduates, too few jobs, but low 'school lever' unemployment levels, and the great middle classes of England footing the bill. The University in my town is the largest employer.
5. drewster said...
Will,
I don't think it will end. A young person having a university degree is like a moose having big antlers. The antlers serve no purpose except to compete with other moose, but if any one moose didn't have big antlers then he wouldn't survive. So a degree might be useless, but without one young people will be at a disadvantage in the labour market. In situations like this the government should step in and regulate the size of the antlers - but that probably won't happen for a long time yet.