The average house price in university towns has risen from £91,612 in 2001 to a current figure of £155,953 according to new research. This is an average increase of 70% over a ten year period.
While average prices in houses located in the more traditional university towns increased by an average of 64%, prices in new university towns – those established since 1960 – recorded higher average prices.
Overall, however, more than two-thirds of all university towns – both with new (70%) and old (64%) universities – recorded higher increases than the average of 62% across the UK as a whole in the last decade.
Furthermore, according to the latest study published by Lloyds TSB, house prices in some areas have more than doubled over the last ten years.
Specifically, Bangor in Wales recorded the biggest increase (129%), followed by Carlisle (110%), Sunderland (108%) and Dundee (107%). Also Pontypridd – home to University of Glamorgan – increased by 106%. Bradford (105%) and Plymouth (102%) were other towns where prices more than doubled too.
However, the most expensive of all university towns is currently Winchester, with an average house price of £364,667. It is followed by Kingston-upon-Thames (£360,331) and Buckingham (£330,795).
In contrast, Salford (£106,685), Paisley (£106,967) and Bradford (£108,282) are the least expensive.
Top 20 University Ranking
Of the ‘Times Top 20 University’ rankings; eleven of them have experienced house price increases by at least 75% on average over the last decade.
Six of those top 20 saw a house price increase of over 80%, these include: Edinburgh (103%), Exeter (91%), Loughborough (90%), Leicester and Cambridge (both 88%), and Lancaster (84%).
Excluding London, the average increase for all of them was 73%. This means that these top ranked universities outperformed university towns as a whole too.
If your finances are being affected by a house price increase, you could consider applying for a homeowners and tenants’ unsecured personal loan.
As with any form of borrowing, it is important to ensure that you are able to meet repayments and fully understand the terms and conditions attached to your loan.