Prices have increased by an average of 22% in UK university towns over three years
House prices in university towns in the UK increase by an average of 22% over the three years of a degree course new research shows.
Across 65 university towns, the average house price has grown from £172,179 to £210,845 in three years, an increase of £38,666, equivalent to a rise of £1,074 per month or 22.5% since 2014.
The top 10 university towns with the largest price growth are all located in southern England, led by Guildford, home to the University of Surrey, which increased in value by £105,362, according to the research from lender the Halifax.
Guildford is also the most expensive university town, with an average house price of £511,673. This is nearly two and a half times higher than the average for all universities.
The next most expensive is Winchester with an average house price of £458,228, followed up by Uxbridge where Brunel University is located at £441,273, Oxford at £424,258 and Cambridge at £397,170.
The greatest percentage increase was in Bedfordshire, where house prices increased by 42% from £200,086 to £284,707 in the last three years. This is followed by Coventry, where the average price has grown from £154,573 to £207,974, an increase of 35%.
The least expensive student town is Paisley which has the University of the West of Scotland with an average price of £122,681, about quarter of average price in Guildford. Others include Bradford at £127,643, Hull at £134,938, Sunderland at £138,548 and Middlesbrough at £142,412.
‘While it is well documented that the student housing market can be lucrative for private landlords receiving monthly rental incomes, this research also indicates the potential earnings from bricks and mortar alone,’ said Russell Galley, managing director of Halifax Community Bank.
‘Over the last three years, parents who bought a property for their child to live in while undertaking their studies, could have seen an average gain of 22% on the value of the property. They may also have benefitted from rental income from housemates or flat sharers,’ he added.
The research also shows that over five years, the growth in house price value has been even more significant, averaging £57,883 or 38% across the 65 university towns and peaking as high as £169,038 or 74% in Hatfield, where the average house price is £394,487.
Since 2012, another eight university towns have seen at least a £100,000 increase in average house price including Cambridge, where the average price increased from £244,509 to £397,170, a rise of £152,662, Uxbridge at £141,171, Oxford up £138,705 and Reading up £137,626.