THERE are around 1.8 million students in more than 80 universities in the UK and the proportion of under-30s in full-time higher education in Britain rose from one in seven in 1980 to one in three in 2002.

By 2010 it could be one in two - and they all need somewhere to live. All in all the housing market for students is enormous - can you really afford to ignore this market, asks Caxtons?

The benefits of letting your property are well documented: you get a regular return on your capital investment and are also likely to enjoy a better net income in the current market than any conventional financial investment, such as building society deposits.

If your property is mortgaged, unless the mortgage loan on the property is substantially greater than its current value, in most cases the net income should cover the cost of servicing the loan. Letting also allows you to relocate, if necessary, for work or personal reasons while keeping your property occupied, heated and secure, thereby reducing the worry of leaving an empty property.

The tax regime for landlords is quite attractive in that the financing costs and servicing costs are largely allowable for tax purposes against the income from the property. This, in a market where the tax regime for owner-occupiers is becoming increasingly less beneficial.

In addition, entrusting a managing agent with your investment removes the need to collect rents, arrange repairs and deal personally with your tenants. A tenanted property is inspected and will be better maintained than if left empty, thereby retaining the value of your investment.

Students form much more stable households than groups of young professionals and you are less likely to have difficulties with tenants constantly leaving before the end of their fixed term. In fact, there will often be the option to renew a contract for a further one or two years.

Unlike young professionals, students are often able to offer parental guarantors for their rent.

Student accommodation is a sensible investment, but you have to get the right advice from professionals within the market. Caxtons have many years experience in the property market, particularly in residential lettings and management. www.caxtons.com