Over the past three years, the turnout for university towns property price values across the UK may have lightened up the mood of investors as properties grew in value for as high as around 40% since 2014.
Research from Halifax Bank noted that properties located in 65 university towns values expanded at an average of 22.5 percent, around £39 000, over the past three years. Southern England holds the top ten university towns with the highest price growth.
While it is documented that the student housing market can be lucrative for private landlords receiving monthly rental incomes, according to Russell Galley, managing director of Halifax Community Bank said this research also indicates the potential earnings from bricks and mortar alone.
The largest price growth was recorded in Guildford which is where the University of Surrey is located. Housing prices values rose by £105 362 equivalent to a 26-percent growth. This translates to the most expensive university town in Britain, with an average house price of £511 673.
Technically housing around the University of Bedfordshire recorded the greatest percentage among the top ten except that the property in Bedfordshire is cheaper than in Guildford and Uxbridge. The latter, which is home to Brunel University, has seen the second highest house price growth from 2014, with property values expanding by an average £102 061 or 30 percent.
Despite the 42-percent increase in house prices, because of the margin of difference of property values, Bedfordshire home prices have risen less substantially, from £200 086 to £284 707.
Property price data for Luton, Bedford and Aylesbury were combined by Halifax for Bedfordshire as the university is based in all three locations.
Other university towns included in the top ten list are Oxford, Cambridge, Hatfield, Reading, Bath, Brighton and Chelsmford.
"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 percent on the value of the property. They may also have benefitted from rental income from housemates or flat-sharers,” Galley added
Halifax data state that in a span of five years the growth in house price values has been even more significant. Since 2012, another eight university towns have seen at least a £100 000-increase in average house pricing, making university towns a possible property hotspot for buyers and buy-to-let investors in the UK.