HOUSE PRICES IN TOP UNIVERSITY TOWNS TRADE AT A PREMIUM
26 June 2006
Source: HBOS
Research published by Halifax examines property prices in the country's top twenty university towns and cities.
Key findings:
THE TOP TWENTY UNIVERSITIES
• The average house price in the top twenty university cities and towns in the Times Top University League Table 2007 trades at a premium of £48,020 to the average house price in their region. Fifteen out of the top twenty trade at a premium to their regional average. Across all university towns in the Times survey the average premium is £9,608. (see Table 1)
• The average rise in property prices across the top 20 University cities and towns over the past five years was 77% - slightly below the average for the UK as a whole of 83%.
• Of the top twenty Durham has recorded the highest property price growth since 2001 (122%) followed closely by Loughborough (111%) and Coventry - location of Warwick University - (107%).
• The least expensive town in the top twenty is Nottingham with an average house price of £139,135. The most expensive prices are in Kensington & Chelsea, (£604,881), location of Imperial College.
• Five of the top twenty universities trade at a discount to the average house price in their region and potentially offer good value for house buyers. The highest ranked university to trade at a discount is Bristol, (-£6,134). The others are Coventry (-£13,860), location of Warwick university, Aston in Birmingham (-£16,153), Nottingham (-£10,718) and King's College London (-£38,258) in Lambeth.
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THE MOST POPULAR UNIVERSITIES*
• The twenty university towns & cities which are most popular with students have on average recorded an increase in their average house price of 81% over the past five years, against an increase across the UK of 83%. (see Table 2)
• The twenty university towns & cities, which are most popular with students, trade at a smaller premium to their regional average house price than the top twenty. This was on average £27,913 in March 2006.
* highest rankings for student satisfaction in Times Universities League Table 2007
BEST PERFORMING UNIVERSITY TOWNS
• Across all university towns surveyed the average increase in house prices over the past five years was 83%, in line with the average increase across the UK over the period. (see Table 3)
• The best performing university town over the past five years was Sunderland with 147% growth in its average house price, closely followed by Salford with 146% growth.
• Twelve of the twenty best performing university towns and cities were in Northern England. Only one was in the South – Plymouth with 116% increase in its average house price over the past five years.
• The six best performing university towns over the past five years all trade at a discount to the average house in their region. The discount is biggest in Hull in Yorkshire & the Humber, a discount of £36,486. The average price in Hull is £103,646
Colin Kemp at Halifax Estage Agents commented:
'House prices in towns and cities which have the best performing universities tends to trade at a premium, highlighting that it can be expensive to buy an investment property when your children attend university.
However, university towns and cities have seen strong house price performance over the past five years with the best performers generating house price growth well above the UK average.'
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