In the same time it takes to undertake the average degree course, university towns across the UK recorded an increase in average house price of 22.5% (£38,666), according to new research from Halifax.
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. The largest price growth was in Guildford, home to the University of Surrey, which increased in value by £105,362 and also doubles up as 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, (£441,273), Oxford (£424,258) and Cambridge (£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 (£127,643), Hull (£134,938), Sunderland (£138,548) and Middlesbrough (£142,412).
Over five years, the growth in house price value has been even more significant, averaging £57,883 (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 (£141,171), Oxford (£138,705) and Reading (£137,626).
Russell Galley, Managing Director, 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 benefitted from rental income from housemates or flat-sharers.”