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University Property Prices Soar By 88pc

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I note the "with the exception of Cambridge"... (still ludicrously overpriced)

University property prices soar by 88pc

(Filed: 20/08/2005)

House prices in university towns have soared by 88 per cent in five years and more than doubled in some cases.

Issuing the figures yesterday, Halifax, the biggest mortgage lender, said that parents who invested in property for their children while at university would have had a good return on their money.

It said the average cost of a home in the towns and cities of the 20 best-performing universities had slightly outstripped the national average, with prices across the country as a whole rising by 83 per cent since 2000.

Manchester had the biggest rise, the cost of property soaring by 114 per cent to an average £136,603. Bath was next, with a 113 per cent rise to £253,208.

In York the cost increased by 109 per cent and prices at least doubled in Birmingham, Sheffield, Nottingham and Durham.

Prices in 14 of the leading 20 university towns and cities exceeded the national average, with only Oxford, Cambridge, London, Warwick, Guildford and Reading lagging.

London reported the lowest growth at 55 per cent, although at an average of £304,703 it still remains the most expensive place to buy a property. Growth in Warwick was 56 per cent.

Halifax also looked at price growth in the towns with the largest student populations outside the top 20 universities.

It found that average house prices there had soared by 100 per cent. Plymouth led the way with growth of 131 per cent, followed by Newcastle upon Tyne at 125 per cent.

Colin Kemp, the managing director of Halifax Estate Agents, said: "The decision to buy a property for a son or daughter at university should ultimately depend on the parents' circumstances and property prices around the university in question."

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I think whatever claims are being made by the Halifax these days are being received with a large pinch of salt. They can't publish anything worthwhile reading for bulls so they keep coming out with these niche reports in order to try a spin a reason to go out and get a mortgage. Even the bulls I know can't be bothered to read them anymore.

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You may be right on the whole about Halifax but in Cardiff, this is of course true. Prices have indeed at least doubled (and more so in many cases) for houses in many areas in the last 5 years including the traditional student areas of Roath and Cathays (and indeed all over Wales).I know a couple of people whose parents bought as an investment while they were in uni, and they did indeed make a killing.

I agree that this is spin though, people aren't likely to do so now.

Edited by Homebird

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The trouble with this type of spin (however factual it may be) is it is retrospective. Perhaps they should be forced to append a disclaimer at the bottom of the article stating past performance may not be indicative of future returns.

I think anyone would be a fool to invest in a university town right now with more students staying at the family home and attending their local universtities. My local universtity has invested in its own residential accommodation over the last few years and, in the surrounding area, I've never seen so many student houses for sale (landlords bailing out) and to-let (can't get any students willing to live there for the rent they are asking). It used to be the case a few years ago when the demand for accommodation was so great that the houses were reserved by students paying a retainer over the summer holidays. It looks like now it's a tenant's market if you are a student. I know most students these days would opt for a modern hall of residence, with free ultra-high speed Internet and a cheap on-campus gym rather than a grotty front room in damp terraced student squat.

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I am tempted to write into the Telegraph about this. What a farce. of course uni towns have had prices double, all towns and cities have had their house prices double!

Why don't they question some of these stats? Where is Ross Clark and houserat?

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Guest muttley
House prices in university towns have soared by 88 per cent in five years and more than doubled in some cases.

What about the last 12 months?

This looks like a case of the VIs switching focus from yoy results in order to maintain a positive spin.

More to the point,what about the next 12 months?

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88%, sounds pretty poor when most other houses have probably increased a lot more,

Just shows they're putting as much spin on this as they can,

'A' level results have just come out and they're more than likely hoping that parents will 'invest' in some student houses for the new influx of the 'great unwashed'

the student house I had was a state, not sure parents would like seeing their 'investment' treated the way students live,

Edited by Kam

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this is complete hogwash

Any issue they will hunt there demographics of buyers to find the last few hotspots.

nurses will get there yearly pay rise and they will run a story how nurses on average have made so much from there homes

bankers will hold a confrence and they will tell how bankers investing in property have done well.

This all realy implies that not everyone is doing so good in property anymore , and to keep the positve stories rolling there now having to split there figures to find areas that buck the national trend.

kirsty did it with the worst and best areas

halifax is now doing it with students

and so it goes on.

a year ago you never got these stories they preferred a nationwide demographic.

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I am tempted to write into the Telegraph about this. What a farce. of course uni towns have had prices double, all towns and cities have had their house prices double!

Why don't they question some of these stats? Where is Ross Clark and houserat?

Just what i was thinking, pretty much everywhere has doubled in the past 5 years, thats the reason were all here


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Maybe we should have a spin-off site that issues counter spin,

"Uni towns perform poorly in the recent House price increases"

"housing demand falls as demographics lead to more houses than needed"

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THIS IS THE LEAD STORY in The Western Mail (the c******* newspaper in the world - probably and claims to be the national newspaper of Wales, even though it's hardly read in the North of the country) has this spin all over the front page - sickening!!!!

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Here's the full press release - if any of you house price experts could pick some holes in this, that'd be great!


Not for broadcast or publication before 00.01 hrs Saturday 20th August 2005

House prices in university towns

Thousands of A-level students have this week (Thursday 18th August) received their examination results and will now be preparing for the move to university. Accommodation will be top of a long list of priorities for parents and students alike. Whilst most first time students will usually spend their first year living in halls of residence, others will be moving into rented accommodation with friends.

Halifax Estate Agents has examined house prices over the last five years in university towns and cities in three different categories: the country's top 20 performing university towns; the largest university student population, as well as the universities offering the most popular courses.

Key findings:

 Of the top performing universities, Manchester recorded the highest property price growth since 1999 (114%), followed closely by Bath where house prices rose by 113%. The third best performing location was York which saw a 109% rise in property prices over the last five years.

 The average rise in property prices across the cities and towns of the top 20 performing universities over the past five years was 88% - slightly above the UK average of 83% (See Table 1).

 Prices in 14 of the university cities and towns surveyed, equalled or out-performed the UK average house price rise.

 Looking at the largest universities outside the top 20 performing universities, by size of student population, the average house price rise in these areas over the period 2000-2005 was 100% (See Table 2).


Page 2 of 5

 Buyers in Plymouth will have seen their property rise by the most, 131% on average, whilst buying property near institutions in central London will have delivered the lowest return at 55%.

 In general the northern cities and towns outperformed those in the South with locations such as Newcastle (125%), Birmingham (108%) and Sheffield (107%), delivering house price growth well above the national average.

TABLE 1: Top 20 Universities Ranked by Performance League Table

University/Location Average Price (£) Increase

2000 2005 (£) (%)

1 University of Oxford 157,034 276,953 119,919 76

2 University of Cambridge 139,364 227,999 88,635 64

3 Imperial College London* 195,993 304,703 108,710 55

4 Univeristy of York 90,149 188,468 98,319 109

5 Univeristy of Warwick 142,779 223,091 80,312 56

6 University of Edinburgh 91,353 177,434 86,081 94

7 University of St Andrews** 58,334 108,722 50,388 86

8 University of Bath 118,713 253,208 134,495 113

9 University of Manchester 63,780 136,603 72,823 114

10 University of Nottingham 69,284 142,216 72,932 105

11 University of Sussex, Brighton 112,054 205,384 93,330 83

12 Aston University, Birmingham 66,995 139,080 72,085 108

13 University of Surrey, Guildford 203,749 348,451 144,702 71

14 University of Bristol 99,805 186,372 86,567 87

15 Cardiff University 84,210 165,850 81,640 97

16 University of Sheffield 63,399 131,014 67,615 107

17 University of Durham 67,470 134,919 67,449 100

18 Heriot Watt University, Edinburgh 91,353 177,434 86,081 94

19 University of Kent, Canterbury 113,258 210,533 97,275 86

20 University of Reading 148,862 243,191 94,329 63

(The average UK house price increase during the same period was 83%)

Source: Guardian Education university guide, published on 19/04/05

* The following institutions in central London are ranked within the top performing institutions but have been excluded as house price figures for London have already been given: School of Oriental & African Studies, London School or Economics, Kings College, University College, Queen Mary, City University, Goldsmiths College

** Dundee house prices used because of small sample size in St Andrews


Page 3 of 5

Colin Kemp, Managing Director of Halifax Estate Agents, said:

"Rising house prices across the UK as a whole have helped parents buying property for their children in university towns and cities to enjoy excellent returns.

"However, the decision to buy a property for a son or daughter at university should ultimately depend upon the parents' personal circumstances and property prices around the university in question."

TABLE 2: Universities Outside the Top 20 Performing Universities ranked by Student Population Size

University/Location Student Population Average Price (£) Increase

2000 2005 (£) (%)

University of Leeds and Leeds Metropolitan. 86,625 70,176 144,068 73,892 105

London Metropolitan University, University of Westminster, University of the Arts 85,475 195,993 304,703 108,710 55

University of Birmingham and University of Central England 57,270 66,995 139,080 72,085 108

University of Glasgow and University of Strathclyde 49,160 70,008 133,761 63,753 91

Manchester Metropolitan University 33,500 63,780 136,603 72,823 114

University of Central Lancashire* 32,610 71,113 151,109 79,996 112

University of Plymouth 28,420 65,637 151,592 85,955 131

Sheffield Hallam University 27,655 63,399 131,014 67,615 107

Nottingham Trent University 27,595 69,284 142,216 72,932 105

University of the West of England, Bristol 26,650 99,805 186,372 86,567 87

Thames Valley University* 25,710 148,862 243,191 94,329 63

University of Northumbria at Newcastle 25,605 69,109 155,414 86,305 125

Source: Higher Education Statistics Agency Limited 2005

* University of Central Lancashire based on Preston figures, Thames Valley University based on Reading figures.


Page 4 of 5


Halifax Estate Agents also looked at the most popular courses for 2005 and some of the other universities which are rated highly for these choices.

1 Law 6 Business Studies

2 Psychology 7 Computer Science

3 Pre-clinical Medicine 8 English Studies

4 Design Studies 9 Nursing

5 Management Studies 10 Social Work

(Source: UCAS, number of applications received by 30/06/05)

Table 3: Universities outside the Top 20 performing universities rated highly for providing popular courses

University/Location Subject Average Price (£) Increase

2000 2005 (£) (%)

University of Bradford Business & Management 51,657 103,212 51,555 100

University of Portsmouth Social work 81,496 157,611 76,115 93

University of Hertfordshire, Hatfield Social work 163,260 262,723 99,463 61

University of East Anglia, Norwich Nursing 79,212 173,229 94,017 119

University of Birmingham Nursing 66,995 139,080 72,085 108

Brunel University, Uxbridge Design 153,623 257,638 104,015 68

University of Glasgow Design 70,008 133,761 63,753 91

University of Hull Medicine 47,090 95,828 48,738 103

University of Brighton Nursing 112,054 205,382 93,328 83

Royal Holloway, London English 195,993 304,703 108,710 55

Abertay University, Dundee Law 58,334 108,722 50,438 86

Napier University, Edinburgh Psychology 91,353 177,434 86,081 94

(Source: Guardian Education university guide, published on 19/04/2005)

In addition to the top 20 most highly rated universities, the universities above are recognised as excellent providers of some of the most popular courses. Many areas around these universities have also seen good increases in house prices over the past five years, compared with the UK increase of 83% for the same period (See Table 3).


Page 5 of 5

Editors' Notes

House prices – Halifax House Price Index, crude average prices 2000 to 2005 (12 months to June in both cases). Prices shown are the arithmetic average prices on which an offer of mortgage has been granted. These prices are not standardised and therefore can be affected by changes in the sample from quarter to quarter. Figures exclude properties sold for £1 million plus.

Top 20 universities and universities offering popular courses – Guardian Education university guide, published on 19/04/05.

Universities by student population size – Higher Education Statistics Agency Limited, statistics based on 2003-2004.

Most popular courses – Universities & Colleges Admissions Service (UCAS)

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