Students to Face Even Higher Interest Rate Charges After RPI Increase
20th Apr 2018
The new research carried out by student accommodation portal StuRents.com shows from February 2015 to February 2016 the average price of renting private student housing in Newcastle climbed from £69.25pppw (per person per week) to £72.86pppw. That's a year-on-year increase of 5.2%.
With the latest ONS figures putting UK inflation at just 0.3% throughout 2015, the price rises in student accommodation costs over the same period far outstrip general price rises across the economy.
A divided city
Prices aren't up everywhere. While the more expensive areas like the City Centre, Spital Tongues and Jesmond have rocketed in price, Heaton has remained relatively stable as have Gosforth and Arthur's Hill which have dipped only 1.4% and 1.6% respectively. Fenham though has seen a dramatic drop in prices from an average of £58.13 to £55.56, a decrease of 4.4% over the year.
4 bed prices rocket
Whilst prices are up across the board as far as property size goes, 4 beds have inflated much faster this year than, for example, 3 beds with the former increasing in price by 5.8% and the latter only 2.5%. 1 and 2 beds have also kept pace with increases around 4.8%, while properties with 6+ beds have slightly beaten the average at 5.0%. In financial terms, a 4 bed house now costs over £800 per annum per household more than it did this time last year.
Tom Walker, Co-Founder of StuRents.com comments:
With the UK government lifting the cap on student numbers, it is inevitable that many cities will experience increasing student accommodation costs as the demand for housing rises. Naturally, this will be unpopular with students, but what is telling is the increasing premium that landlords are predicting students will be willing to pay for convenience and security. Areas already very popular with students - and therefore typically more expensive - have seen the biggest proportional increases in price. On the other hand, properties in areas that are less appealing for students - and therefore cheaper - have actually experienced price decreases to entice students back."
Notes to Editors:
 Based on StuRents data and analysis of 3811 private student properties in Newcastle (excluding purpose-built accommodation).
 Excluding private purpose-built student accommodation.
 Source: http://www.ons.gov.uk/
20th Apr 2018
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