Lancaster has a love/hate relationship with students. It’s not something that has to be questioned, sadly negative posts are made often on social media. You only have to look at Lancaster, Past and Present on Facebook!
What people fail to realise or want to understand though is the impact that students have had in a positive way on our local economy and also housing market.
Lancaster has two universities – between them two they employ over 4000 people and house almost 20,000 students. Many of these people live in our city, they shop locally and dine out in our local bars and restaurants. It is what keeps our city alive and economically ahead of many other neighbouring towns.
When it comes to property though it becomes really interesting. 29% of all students live locally in privately rented student houses. Only 19% live in student provided accommodation such as Caton Court – although this sector is growing as more developers seek to steal these tenants away from private landlords!
For many students though, choosing to live privately in smaller clusters is a choice and a preferred lifestyle. They can live with friends and like-minded people. Many will state it is quieter and they can focus better when studying. They can also choose where in the city they live in blend better within their local community.
Across the UK, the average student spends £568 per month on rent (bills included). In Lancaster – it is slightly lower at just under £500. This is a lucrative market for student landlords with many Lancaster properties providing gross yields in excess of 10%.
When students graduate though, even more, move into the private rented property. Financially many are not yet in a position to want to buy a home, nor do they know where their chosen career may lead them, hence a whopping 47% of these graduate look to move into rented accommodation.
In Lancaster, over the past 12 months, 51.2% of all tenants have been aged between 18-29. 27.4% of tenants are aged between 30-39.
The Lancaster rental market can still be lucaritive, especially when you consider rental yields and capital growth. Many investors are turning back to property as safer haven than investing in stocks and shares, as one thing for certain in this uncertain world is that we all need to somewhere to call home!
If you would like to chat about the local property market, please get in touch. At JDG we are here to help. Call us on 01524 843322.
Ps. If you a student at university in Lancaster – the team at JDG welcome you to our beautiful city!