Increase in the supply of student accommodation in Glasgow.
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Trends in the property market: students in Glasgow
Home to the UK’s second largest student population and no less than four universities, Glasgow is home also to a high proportion of tenants demanding excellent value and unique terms based around student living from their landlords, be they buy to let investors or Glasgow property agents.
While demand for university places remains relatively buoyant, especially for undergraduate courses, and supply in the housing market is not yet plentiful in Glasgow, commitment from property developers and newfound will on the part of banks, incentivised in part by pledges of public finance by the government, are slowly but surely increasing the supply of flats and houses available to the city’s student population.
As young families and recent entrants to the jobs market begin to take up places on help to buy schemes and banks find themselves compelled by the governments who bailed them out at the height of the global financial crisis to raise capital and provide safe credit to the taxpayers who require mortgages and have been unable to find them, moves out of city apartments and house shares to new builds, particularly in the East End, are leaving increasing numbers of city properties available to let.
Given the likelihood of demand in the rentals market remaining comparatively stable, despite hard times for students and the decision of a percentage to decline university offers and student loans in favour of school leaving employment, this leaves everything to play for when it comes to the student tenant and landlord relationship. Competitive landlords will want to ensure they are providing the best value Glasgow property and service to their tenants. This means being up to speed with the new student lifestyles, finances and budgets facing both undergraduates and postgraduates.
For postgraduates, cuts to research grants across arts, sciences and humanities means that there are fewer funded degrees available. Those who are fortunate enough to secure funding will be more likely to work part time, if not full time while pursuing part time research. The same goes for undergraduates, who are facing a number of socioeconomic and financial factors that have dramatically altered the landscape of undergraduate life.
The importance of these changes for landlords letting student tenants is to appreciate the opportunities associated with the student population. For instance, with students forced to enter employment much earlier than on graduating and to go the extra mile to maintain job security with demand for employment being so unmet in the current economy, 12 month leases, as opposed to leases excluding the long academic summer vacation, are the norm.
Home, EU and international students are all less likely to travel home during their vacations and reading weeks, not only in light of the increased pressure to keep their jobs and to take on hours in order to cover the cost of student living, but also in light of the fact that travel fares are increasingly seen as an expensive luxury, rather than a necessity.