Has the student housing bubble burst for town?

Oct 20 2007 by Moira Sharkey, South Wales Echo

THE RISING cost of student life is biting hard on the economy of a South Wales university town, with scores of rented houses empty or up for sale.

At least 160 student houses owned by local landlords are still on the rental market one month into the new term.

Terraced streets in Treforest, which for more than 20 years have been packed with students, are now filled with To Let and For Sale signs, as students opt to study at a university nearer home, or are moving to Cardiff to live in purpose-built halls of residence.

One student accommodation website, studentpad.co.uk features 156 Treforest houses to rent, more than 80 of which are empty. The remainder have a total of 150 spare rooms. An list of accommodation on the University of Glamorgan’s website also illustrates the decline with 67 out of 237 recommended properties still available, ranging from flats to six-bedroom houses.

Landlords say for the first time in 20 years they are struggling to fill their properties. Some have been forced to sell up and have been struck a double blow by the slowing property market. One house in John Place which was valued in May at £147,000, was reportedly sold at auction this month for just £83,000.

While some blame the slump on the fact the university has opened a new Cardiff campus to house the School of Creative and Cultural Industries, university bosses say the trend is due to the fact that many students who still attend courses in Treforest, are opting to live in halls of residence in the capital.

Students say the purpose-built accommodation offers better value for money, 24-hour security and extra facilities including launderettes and gyms.

Others are living at home to save money, including the growing number of mature students. Figures out this week by the university admissions service Ucas, show the number Welsh students opting to study at a local university is up by around 500 to 11,859 this year. The number of young people going straight from school to university fell slightly while the number of mature students is up by more than 16 per cent.

Even though the Welsh Assembly Government is currently subsidising tuition fees, students in Wales still face record graduate debt with the cost of taking a degree full-time rising to more than £33,000.

While Treforest’s economy feels the pinch, private landlords in Cardiff are benefiting. Business is booming for national companies such as Victoria Halls which runs one of several halls of residence off North Road. The complex caters for 410 students in 86 flats, including, on average, five en-suite bedrooms, a communal kitchen and living area, and is full this year.

Facilities include satellite television, 24-hour security and a launderette. It costs around £80 per week for a single room, with all utility bills included. This compares to rental prices of between £35 and £60 per person per week in a shared house in Treforest, not including bills.

Estate agents are reporting that the rental market in Cardiff, is strong with new figures from the Land Registry showing that in August this year house prices dropped in Wales by 0.4 per cent. In Cardiff they stayed the same.

Dan Murphy, lettings negotiator for estate agents CPS in Cathays, Cardiff, said the rental market is similar to last year with the biggest boom seen in January and February as students look for properties for the next academic year.

Lee Cecil, Wales’ representative for the National Landlords’ Association, said support was needed for landlords in towns like Treforest.

“The South Wales Valleys no longer has its mining industry, or mass employers,” he said. “It is looking to tourism and other enterprise and for Treforest the student market has been an important part of its economy, not just for landlords but for local businesses including shops and pubs. I have heard from many landlords who feel very let down that this situation was allowed to happen. Local authorities need to do more to ensure that towns which rely on the student population are able to remain sustainable and vibrant.”

A University of Glamorgan spokeswoman said: “There has been a growing trend for students choosing to live in privately-owned halls of residence in Cardiff. The standard of accommodation in these purpose-built buildings tends to be high and students are drawn to living in the city centre because of the opportunities for part-time work.

“The University of Glamorgan has always encouraged landlords in Treforest to improve the standard of private accommodation. We also continue to work with Pontypridd in Partnership (PIP) to maximise student employment opportunities in the town.”

Student Welfare officer at the university Steven Nicklin said: “Students believe that the new halls of residence offer value for money and lots more facilities than they would get in a house. Most are en-suite, have a communal room and kitchen, and some have a gym. There are also students who choose to stay at home. But Treforest still has the vibe of a university town. The biggest change for students is that a few years ago you would have to get a house early but now that’s not the case.”

moira.sharkey@mediawales.co.uk