As students start their new academic year, it has been revealed that property prices in university towns are surging.
According to research carried out by the Halifax, university towns across the UK have seen property prices rise by an average of £38,666 in the three years it takes to complete a degree.
This represents an average 22.5 per cent rise over the three years, equivalent to over £1,000 per month.
Across 65 university towns, average property prices have risen from £172,179 to £210,845 over the period, though naturally some towns have seen prices rise more than others.
The top performing university town for property price increases was Guildford, home to the University of Surrey. Property prices in the town surged by £105,362 to £511,673 over the last three years, almost two and a half times the average, which has seen Guildford become the most expensive university town in the UK.
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 least expensive university town is Paisley where the University of the West of Scotland is situated, with an average price of £122,681 – about quarter of the average price in Guildford. Others include Bradford (£127,643), Hull (£134,938), Sunderland (£138,548) and Middlesbrough (£142,412).
Managing Director of Halifax Community Bank, Russell Galley, 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.’
He continued: ‘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 per cent on the value of the property. They may also have benefitted from rental income from housemates or flat-sharers.’