Earlier this month, UCAS (Universities Admission Service) announced that the first figures on the numbers applying for UK university places next year (2010) shows a 12% increase on this year. What is also interesting to note is that applications from students from outside the UK also rose and it is anticipated that this trend will continue.

This is good news for property investors who have properties rented to students - an investment strategy which I firmly believe in - since the old dynamic of supply and demand will serve to ensure healthy rents and solid capital growth in this property sector.

Currently there is a shortage of quality student accommodation available to provide housing around universities and demand tends to outstrip supply. Many cities have embarked on the construction of new halls of residence but with the credit crunch putting pay to many construction projects, some of these schemes will fall by the wayside or be delayed. This means that demand for student accommodation in the private rental sector will remain high.

Click here to read my Top Tips on Renting to Students.