The student accommodation market in London is seeing skyrocketing demand from worldwide students. As more populations rush towards physical classroom activities, the sloth-like industry has taken an enormous interest once again in September 2021.
Despite the global pandemic, the UK administration has announced smart-unlocking of universities and has allowed universities to open up. Seeing the opening up of institutions, there has been steep growth in London's demand for student accommodation.
Experts believe that the majority of students are heading to housing near universities. For instance, student housing in South Kensington, Earl's Court, and Sloane Square near Imperial College London is most likely becoming the trending place to stay near London's prestigious university.
Students are rushing to book rental properties.
Amelia Greene, the director at Savills Plc, told Bloomberg that real estate brokers had experienced rapid demand growth in the past few weeks. As per the report, brokers and agents have recorded rental applications double from July-September 2021.
Out of the growth, over 70% of demands have come from the international populace. "It almost feels like we've got two years' worth of students all wanting to move in September," Greene commented. While the demand is nowhere near the end, the housing market for Londoners has posed a new challenge to the students- the rising cost of properties.
You Snooze You Loose
The spike in housing demand has paved the way for expensive charges for students. According to David Salvi of London estate agency Hurford Salvi Carr, the rent charges in student accommodation in London has risen to 15% from July.
While the city is still recovering from the COVID-19 outbreak, the housing market has made it challenging for students to navigate pocket-friendly properties. Signing an unseen contract, paying up to 12-months of advance rent, video call meetings without checking the place are some of the significant steps students take to secure a rental option.
On the other hand, the new wave of booking has also allowed students to book their rentals before leaving their home countries. The London student housing market, which is one of the largest globally, is majorly occupied by private players.
Such businesses leave out the agreements with the universities and directly deal with students. As the world is becoming more digitized, this has posted a massive rise in demand and benefited large students' flocks. "It's a perfect storm in that there's a shortage of stock and a high volume of applicants all at once," Greene concluded.