Some buy-to-let mortgage holders might be struggling to meet their repayments in the current economic climate, but for private landlords with student properties the recession could be boosting their profits, it has been suggested.

Indeed, figures from UCAS show that there is significant potential for tenancy agreements in the student market, as university applications increased by eight per cent last year.

As well as offering "huge tenant demand", investors could take advantage of relatively low mortgage rates to make high returns on student property, according to Stuart Law, chief executive of Assetz.

"This is one sector of the property market which is set to benefit from the economic downturn,"the investment expert added.

Recent industry reports have stated that buy-to-let mortgage holders with larger portfolios are thriving in the recession, because they have been able to take advantage of increasing tenant demand and low house prices.

In addition, data published by property website Accommodationforstudents last year showed that rental prices had increased by around 20 per cent since 2004.ADNFCR-2002-ID-19072956-ADNFCR

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