Students 'opting for buy-to-let'

Posted: 23 Oct 2007 10:18:42 GMT

Students may be renowned for being permanently strapped for cash but it seems many are considering investing in property as a way of paying off their debts.

Students may be renowned for being permanently strapped for cash but it seems many are considering investing in property as a way of paying off their debts.

A new survey by Abbey has found that the number of students who are considering buying a university property has hit 154,000, while 88,000 current students and parents are already property owners.

The news comes despite warnings that a housing market slowdown is on the horizon which looks set to see the value of homes across the UK drop considerably.

Nici Audhlam Gardiner, head of mortgages at Abbey, said: "Britain's student population continues to be a source of income for buy-to-let property investors, many of whom are parents of the students or the students themselves.

"The key issue with any mortgage, but a buy-to-let one in particular, is affordability.

"People considering it need to make sure that they can afford the mortgage payments plus any maintenance costs, service charges and down-time between tenancies that they will also need to cover."

The figures found that 44,000 students were considering joining forces and buying a place together while three-quarters of them have already bought on their own or with friends.

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