House Prices Surge In University Towns

23 September 2017, 08:22

Scotland houses

House prices in university towns surge by nearly £39,000 on average over the course of a three-year degree course, analysis has found.

The towns and cities in Halifax's study have seen an average increase of 22.5% or £38,666 since 2014.

Across the 65 UK areas included, the average price grew from £172,179 to £210,845 - equating to an increase of £1,074 per month.

The survey, which did not include London, found the 10 university towns with the largest price growth over the last three years were all in southern England.

The largest growth in cash terms was in Guildford, home to the University of Surrey, which increased by £105,362 and was also the most expensive university town in the study, with an average price of £511,673.

The greatest percentage increase was in Bedfordshire, where house prices rose 42% to reach £284,707 on average.

The least expensive was Paisley in Scotland, with an average of £122,681. Other less expensive towns and cities included Bradford (£127,643), Hull (£134,938), Sunderland (£138,548) and Middlesbrough (£142,412).

Over a course lasting four years, prices in university towns have seen an average increase of 34% or £53,755 since 2013, the research found.

Over the last five years, the growth has been even more significant, averaging £57,883 (38%) across the 65 university areas.

Russell Galley, managing director of Halifax Community Bank, said: "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.

"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 benefited from rental income from housemates or flat-sharers."

Here are the best-performing university towns by house price growth in cash terms since 2014, according to Halifax, with the average house price in 2017 and the increase over the last three years in percentage and cash terms:

1. Guildford, £511,673, 26%, £105,362

2. Uxbridge, £441,273, 30%, £102,061

3. Hatfield, £394,487, 29%, £88,829

4. Bath, £384,386, 29%, £87,169

5. Bedfordshire, £284,707, 42%, £84,621

6. Cambridge, £397,170, 26%, £82,678

7. Reading, £385,338, 26%, £78,473

8. Oxford, £424,258, 22%, £76,255

9. Brighton, £362,618, 26%, £75,804

10. Chelmsford, £334,808, 29%, £74,517

Here are the 10 most expensive university towns in the study:

1. Guildford, £511,673

2. Winchester, £458,228

3. Uxbridge, £441,273

4. Oxford, £424,258

5. Cambridge, £397,170

6. Hatfield, £394,487

7. Reading, £385,338

8. Bath, £384,386

9. Brighton, £362,618

10. Chichester, £357,989

Here are the 10 least expensive university towns:

1. Paisley, £122,861

2. Bradford, £127,643

3. Hull, £134,938

4. Sunderland, £138,548

5. Middlesbrough, £142,412

6. Carlisle, £144,805

7. Durham, £146,455

8. Pontypridd, £146,726

9. Belfast, £147,969

10. Dundee, £151,987