Halifax: University towns have higher house prices than their neighbours

Date:Monday 6th October 2008
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Towns with universities frequently have higher house prices than the towns surrounding them, according to Halifax.

In news that may interest people seeking mortgages, Halifax discovered that of 64 university towns surveyed, 35 had higher average prices than the neighbouring ones.

This comprises 55 per cent of those surveyed.

Halifax said there was a mean price premium of £20,335 compared to their county averages.

Winchester has the highest premium, with the average house price exceeding that of the county of Hampshire's average by £114,489, or 50 per cent.

Furthermore, Manchester, which has the biggest student population of 73,160, has had an average house price growth of 63 per cent in the last five years.

In the same period, the national average growth has been 44 per cent.

Martin Ellis, chief economist at Halifax, said that while buying a property for a child at university could be a good investment, it depends on the parents' circumstances and prices in the area.

Last month, Halifax reported that rural house prices are 22 per cent higher than in urban areas.

Rural areas also have house prices that are an average of 6.5 times more than annual earnings, while in cities the ratio is 5.3.