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End Of The University Bubble?

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Got a student BTL? Confident in ever increasing numbers of youngsters paying ever increasing living costs and fees to pay for your investment whilst degree level jobs fall and employers scrap the jobs milkround?

Another point that many BTL'ers in University towns have failed to realise is that there is a major shift in the student populations going on at the minute, primarily due to the major costs now involved in a University education.

Far more students are now choosing to go to there local universities where they can continue to live at home with parents during their education. This way, they can massively reduce the costs involved - and the debt at the end. (I really feel sorry for them because one of the best things about University for me was living away form home!).

I have some experience of this as I used to work at Hull University a couple of years ago. They realised that they have a problem there due to the relatively small catchment area for potential local students (places like Sheffield, Leeds, Bradford etc have a much larger population within commuting distance).

The second university In Hull (Humberside University - old Poly) closed down a couple of years ago and relocated to Lincoln, mainly due to the reduced demand they foresaw in the future (The city is not really big enough to accomodate two Uni's - especially as they were right next door to each other!).

In my day (early 90's) I would think that the number of students at my Uni who were local and lived with there folks was around 2-3% (I only met one guy in three years). In the future I think they will become the majority, a big shock to all those who bought up BTL's expecting a never ending supply of student grants!

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Got to come hasn't it - just no way youngsters without parental money behind them will be able or willing to rack up debt the way they are going.

Potenital double whammy is that obvious student rental areas in a downturn won't be that popular with FTB's and families.

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I work at Sheffield University. There are literally thousands of rooms of self-catered student flats coming into the market. When I came here in 1996 you either stayed in University accommodation or a private house. Now there is so much more choice.

The area where I live in about a mile from the Uni and is full of, to be frank, run-down terraced houses. When students have a choice of paying £40 a week for a damp room or £55 a week for a new room in a flat with all bills paid, I think they are going to take the latter.

Also, the University has just got planning permission to redevelop all their student residences which will bring an extra 1000 rooms in the next couple of years.

I think there are going to be a LOT of BTL landlords struggling to fill these houses and that, coupled with a nice fat price drop, means I might actually be able to afford to buy a house on the road I rent on. In 2000 my house was bought for £40... last year our landlord paid nearly £90k for it (now they are about 110...) :angry:

only me - have to disagree (well in Sheffield at least) - lots of recent graduates stay on and would be potential FTBs in these areas (for a while at least until the behaviour of drunken freshers drives them out)

Edited by jimmy
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