Places have been secured. Cheap utensils are being purchased. Worried parents are already counting down the days until reading week.
Yes, the new academic year is nearly among us!
Today, a new report has revealed that average property prices in Britain’s top 50 university cities (based on the Guardian’s league table) have risen by more than 27% in three years. This equates to £66,000, according to a report by HouseSimple.com.
Student city soaring
The online estate agency’s figures show that 60% of cities ranked in the top 50 have seen property prices rise by an average of in excess of £20,000. This figure is alarming, considering that many students have to pay £27,000 for a three-year degree course.
Research carried out by the firm analysed how local property markets in top-performing university towns and cities have performed since 2013. This is in order to calculate possible price growth in the next three years. However, the research does fail to take into account capital gains tax and estate agent fees.
HouseSimple.com looked at university cities with:
- average house prices below the UK average
- which of the top 50 university cities have the lowest prices
- where price growth since 2013 exceeds £20,000
Results from the survey are shown in table below:
|University & Area||Potential increase in house prices over next three years based on growth since 2013||Current average house price, based on Land Registry House Price Index data|
Top of the class
In terms of buying a property as a student investment for offspring, parents should look at purchasing near the Queens University, Belfast. Here, current average prices are £110,042. Projected house price growth in the next three years is estimated to be around £20,000. Nottingham and Leicester could also prove savvy locations in which to invest.
|University & Area||Potential increase in house prices over next three years based on growth since 2013||Current average house price based on Land Registry House Price Index data|
Alex Gosling, CEO of HouseSimple.com, noted, ‘it’s hardly surprising that young people are thinking twice about heading off to university when they’re faced with a £27,000 headache that they have to pay back. But for those parents fortunate enough to be able to afford a second property, there could be a way to give your offspring a debt-free start in life, depending on where they go to university.’
‘There’s a good chance parents of undergraduate will be expected to help cover the cost of rent, tuition or both. By investing in a second, your child won’t have to pay living costs, as the rent will cover that and the increase in capital value could cover the cost of tuition fees,’ he added.