The UK’s top 50 university cities have seen average property prices grow by more than 27% or £66,000 in the past three years, according to research by online estate agents HouseSimple.com.
In 60% of these cities – for students on a three-year degree graduating this year – house price growth would have covered their £27,000 tuition fees.
Based on the same house price growth since 2013 using Land Registry data, HouseSimple has calculated the potential price growth over the next three years, for students starting university in September.
For students starting at Manchester University, an average property is currently £147,700, while house prices have risen on average £10,036 a year over the past three years. That’s a total profit of £30,108 to cover course fees.
In Birmingham the current average property price is £153,926, and prices have increased £42,697 since 2013. If the average rate of growth continued at the same level for the next three years, parents with children studying at Birmingham or Aston could cover tuition fees and general living costs on house price growth alone.
The following table shows university cities where house price growth over the next three years could cover the £27,000 tuition fees for a three-year degree. The cities are ranked by lowest average house prices.
|University & Area||Potential increase in house prices over next three years based on growth since 2013||Current average house price***|
Although property prices have risen fastest in London, there are very few parents who could realistically buy a property for their child studying in the capital.
Instead, in the table below, HouseSimple has looked at university cities with average house prices below the UK average – and which of the Top 50 university cities have the lowest prices, and also where price growth since 2013 is more than £20,000, enough to cover at least two-thirds of the tuition fees on a three-year degree.
Top of the class is Queen’s University, Belfast, where current average prices are just £110,042, and house price growth over the next three years, based on price rises since 2013, could be just under £21,000 (£20,766).
|University & Area||Potential increase in house prices over next three years based on growth since 2013||Current average house price|
Alex Gosling, CEO of online estate agents HouseSimple.com commented: “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 undergraduates will be expected to help cover the cost of rent, tuition or both. By investing in a second home, 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.”