Research suggests that landlords could end up missing out on a collective £320 million, as 60% of students reconsider their tenancy and contemplate moving out of their student accommodation due to the cost-of-living crisis.
Students need landlords to act, with 76% of those believing that rent should be lowered to ensure they are able to extend their tenancy agreements. And there are other actions tenants think landlords can do to ensure they renew their tenancy:
- Tenancy to be all-inclusive of bills
- Low or no deposits
- Discounts provided based on referrals
- Greater flexibility with ending the tenancy
- Ensure properties are energy efficient
Chelsea Shakespeare, a manager within the household team at Adrian Flux says: “Landlords can reassure tenants amidst the financial uncertainty by making sure their tenants know where the financial responsibility lies, and that they (landlords) have adequate insurance, as well as inform students what happens if there is an emergency. This will alleviate any concerns around related unexpected costs that might arise during a tenancy so students can budget accordingly.
And in case of the worst, we recommend landlords review their policies and consider cover for all eventualities including rent guarantee, unoccupied periods (such as during change of tenancy and half terms), and legal expenses should disputes arise.”
Living with friends, freshers’ week and surviving without parents are all part of the university experience, with 72% citing this as the reason they moved to university in the first place – but are students today getting this traditional experience? Rising costs mean that they are growing increasingly concerned over bills and other expenses.
In fact, specialist insurer Adrian Flux found that students are more concerned with affording utility bills than they are food. In a new study of 1,000 UK students, 66% said that paying for water, gas and electric were their biggest cost consideration compared to 40% who claimed it was paying for the weekly food shop.
Furthermore, Netflix or Amazon Prime are low priority for students as costs such as commuting, and internet are ranked higher in financial consideration. And bills are clearly a growing concern for young people keen on further education as additional costs for tenants’ insurance (13%), parking permits (17%) and the TV licence (18%) are factored, with these also polling above entertainment subscription services.
For the full research on student renter considerations please visit https://www.adrianflux.co.uk/blog/2022/12/student-flat-revolution.html or visit https://www.adrianflux.co.uk/student-landlord-insurance/ for more information on landlord insurance cover options.