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Over the last year the average rental value (ARV) for student housing has stayed largely the same, experiencing a small fall of 37 pence from £79.64 per week per bedroom last year to £79.27 this year, according to Accommodation for Students’ annual sector report.
 
Whilst average costs in the rest of the lettings market have risen on average by 2% over the last year, according to LSL Property Services, the student sector has stayed stable thanks to a relatively competitive market, music to the ears for those students seeking last minute accommodation before the start of the new academic year.
 
Unsurprisingly, rents remain highest in the South, the South Coast, Kent and Greater London. However, rents have actually increased more in the North (+ 3.6%) and gone down in the South (- 3.5%). 
 
As expected, London remains the most expensive location for student accommodation. The capital has an AVR of £136 per week per room, a 5% increase on last year. Kingston follows closely behind (up 8% to £108), with Winchester in third place (up 6% to £107). All three locations have now held top ten positions for the last three years.
 
Regions that have reasonably low rents include the Midlands and the North West, with places such as Wolverhampton (£58), Derby (£65), Stoke (£65) and Bolton (£61) all offering rents that are 22% lower than the UK average. In the North East, more variation is seen, with rental values at a low of £50 in Stockton, and a high of £88 in nearby Durham. 
 
Bournemouth and Luton, meanwhile, saw this year’s greatest drops in average weekly rent. With an ARV of £80 each, they fell 11% and 12% respectively.
 
Across the country, the lowest recorded rental value was £17 per week per room in Coventry, whereas the highest was £199 per week in London. This means the UK rental range is £182, £32 greater than in 2013, pointing to an ever-widening gap in UK rents. 
 
51% of properties in the UK now offer ‘bills inclusive’ rental packages, a percentage which has steadily risen since 2005. There is an average addition of £7.21 per week per room for this option.
 
“There is more choice in student accommodation than ever before, from the basic bedroom with a bed and desk to purpose built blocks offering on-site gyms, launderettes and games rooms,” Simon Thompson, Director of Accommodation for Students, said. “Although figures suggest there is a widening gap in the student rental market, factors such as the facilities on offer and whether bills are included or not, have to be taken into account. Budgeting can be a major stumbling block for young people who have just left home for the first time, so it is encouraging to see that ‘bills inclusive’ accommodation is on the rise.”
 
He added: “Overall, increased competition has helped stabilise rents, which is good news for students, but also for landlords, who can be reassured that the student rental sector remains robust and is still one of the most attractive yield classes for property investment.”
 

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