Too soon to find student accommodation?

How soon is too soon when it comes to finding student accommodation? Housing Hand reflects further on the current situation.

Too soon to find student accommodation? Housing Hand reflects | PBSA News

With the exam season now in full swing for A-level students, most currently have their heads in their books, making the most of the last few days of cramming in information. For many students, finding somewhere to live during university still feels like a long way off. However, there’s a lot to be said for sorting out your paperwork well in advance, according to UK rental guarantor service Housing Hand.

Housing Hand recommends that young people get up to speed on the accommodation options in their preferred university town or city well before A-level results are published. Many locations now offer a mix of university halls of residence, purpose-built student accommodation (PBSA) and properties in the private rented sector. The number of landlords providing the latter, however, is declining fast and Housing Hand is seeing an increasing number of students (and, indeed, other renters) struggling to secure accommodation in their chosen area.

“While students can’t really confirm their living arrangements until they receive their email results and confirmation of their university place, there is plenty that they can and should do before then. As soon as exams are out of the way, it is the ideal time to focus on all thing’s accommodation related.”

James Maguire, Head of Sales and Business Development, Housing Hand

One issue compounding the problem is the growing number of renters who are renewing their tenancies earlier while in situ. The Housing Hand team has spotted this growing trend, which is further complicating the usual patterns of supply and demand in the student accommodation sector.

According to Knight Frank, the number of properties available to renters has dropped by up to 40% over the past year. Many landlords have been driven from the market by increasingly unfavourable returns, with rising mortgage interest rates following years of reduced tax concessions for those providing rental homes.

The dwindling supply of rental homes is pushing up student rents. While Zoopla reports a UK-wide rent increase of 12% from September 2021 to September 2022, Dataloft reports that students have seen a 23% increase over the past year.

The lack of accommodation isn’t the only issue facing would-be student renters, according to the Housing Hand team. They point out that most students don’t yet have sufficient credit history to rent a property without needing a guarantor. However, the cost-of-living crisis has resulted in an increase in the number of guarantors failing referencing checks.

This is one area where Housing Hand can help. The company is the only guarantor service accepted by the majority of letting agents and accommodation providers. Operating across the UK and Ireland, Housing Hand can act as a guarantor on behalf of the student, as well as providing a depositless rental option for those struggling to stump up a month’s rent for their deposit – another problem exacerbated by the inflated cost of living. Housing Hand also operates a house finding service for those struggling to locate appropriate accommodation.

“Students do have options available to them when it comes to help with finding and securing somewhere to live in their university town or city. But we certainly recommend that they begin the process of sorting out their accommodation well in advance. It’s never too early to start addressing the paperwork side of finding student digs.”

Graham Hayward, Chief Operating Officer, Housing Hand