"Student are doing wonders for house prices"
House prices in university towns are increasing faster than average – with property values in ‘new’ university towns rising the fastest.
In 10 years, despite the house price slump, values have risen by 70% in towns and cities that have established universities since 1960.
Average prices have soared from £91,612 in 2001 to £155,953 in 2011.
Meanwhile, prices in traditional university towns and cities lagged but still showed a return of 64% against a national average home price increase of 62%.
Overall, more than two-thirds of university locations beat the average UK house price rise.
Best university performers where prices more than doubled are:
- Aberystwyth (144%)
- Bangor, North Wales(129%)
- Hull (119%)
- Aberdeen (118%)
- Carlisle (110%)
- Sunderland (108%)
- Dundee (107%)
- Pontypridd (106%)
- Bradford (105%)
- Edinburgh (103%)
- Plymouth (102%)
University cities with the most expensive houses even though prices did not double are:
- Winchester with an average house price of £364,667
- Kingston-upon-Thames (£360,331)
- Buckingham (£330,795)
Cheapest are Hull (£106,021), Salford (£106,685), Paisley (£106,967) and Bradford (£108,282).
The figures were compiled by Lloyds TSB. The bank’s housing economist Nitesh Patel, said: “Growing student numbers are likely to have had a positive impact on house prices in university towns over the past decade.
“This effect has been heightened in the newer university towns where prices have, on average, risen more rapidly than in the towns that host the more established universities. Increased student demand for accommodation is also likely to have added to upward pressures on rental values in university towns, increasing their attractiveness to landlords.”
Average house prices in 11 university towns in the Times Top 20 University Rankings saw average house prices rise by at least 75% during the last 10 years.
Leading the way is Edinburgh (103%), followed by Exeter (91%), Loughborough (90%), Leicester and Cambridge (both 88%) and Lancaster (84%). The average increase for all 20 towns (excluding London) was 73%.