An influx of mature students is helping to prop up one corner of the property market, according to Paragon.
Older students are forming an increasingly large proportion of university attendees and are helping to bolster regional rental markets, a property specialist claimed yesterday.
According to figures cited by Paragon Mortgages, there has been an overall 12.6 percent increase in the number of over-24s applying for study for the 2009/10 academic year. Among 21 to 24-year-olds, the growth is larger still at 12.9 percent.
Tough conditions in the current graduate jobs market could be tempting students back into full-time study, according to Paragon. Latest government figures show that the jobless total has hit 2.03 million - a decade-long high.
Figures from the property firm show that typical annual yields for landlords holding student accommodation within their buy-to-let portfolios are 7.2 percent. For those who do not, the typical yield is 6.2 percent.
John Heron, managing director at Paragon Mortgages, commented: "This increase in demand is not only good news for landlords that focus on the student lettings market, but also potentially landlords in the wider vicinity of the university. As universities expand, demand for good quality accommodation also increases, which should filter through to rental income."
He added: "I'd also expect an increase in the number of mature students applying for postgraduate courses as students look to develop their knowledge further and present the best CV they can to employers."
