The review is based on Halifax's own extensive housing statistics database, along with data from the Higher Education Statistics Agency. Thirty five university towns (55% of the 64 surveyed) in the UK have an average house price higher than in surrounding areas, with an average price premium of £20,335 compared to their county average.
The highest premium is in Winchester, home to the University of Winchester, where the average house price exceeds the county (Hampshire) average by £114,489, or 50%
Manchester, which has the largest student population (73,160) recorded average house price growth of 63% - well above the UK average of 44% - during the last five years
The average rent paid by students across the UK is £96 per week for private rented accommodation, ranging from £64 in Northern Ireland to £116 in Greater London
Guildford is the most expensive university town in the UK with an average house price of £363,503 followed by Winchester (£343,332) and Bath (£326,403)
Hull is the least expensive university town with an average house price of £124,108. The average house price in Hull has increased by 79% during the past five years
Three university towns saw average house prices rise by over 100% during five years; Belfast (105% increase), Dundee (101%) and Bangor (100%)
KEY FINDINGS
House prices in the majority of university towns trading at a premium.
Thirty five university towns (55% of the 64 surveyed) in the UK have an average house price higher than in surrounding areas, with an average price premium of £20,335 compared to the county average.
Nine university towns have an average house price premium in excess of £20,000 when compared to their county. These include Winchester (£114,489, or 50%), Bath (£98,562, or 43%), Cambridge (£90,699, or 44%), Warwick (£75,454, or 46%), Oxford (£39,797, or 14%), Newcastle (£25,005, or 16%) and Stirling (£20,296, or 13%).
In total, 17 university towns have an average house price premium in excess of £10,000 when compared to their county.
Size of student population and house price growth in last five years.
Manchester, which has the largest student population in the UK - 73,160 - recorded average house price growth of 63% during the last five years, well above the UK average of 44%. Liverpool, which has a student population of 53,705, saw average prices increase by 71% during the period.
However, some university towns with a smaller student population also experienced large average house price increases. Glasgow, with a student population of 45,125, recorded average price growth of 74% and Preston, with 29,845 students, saw a price rise of 53% during the five years.
Rental values for private student accommodation during term time in university towns.
A survey conducted for the Halifax showed that, on average, students pay £96 per week (£415 per month) for private rented accommodation across university towns in the UK. Highest average rents are paid by university students in London, at £116 per week (£502 per month), followed by the East of England and South West (£104 per week, or £452 per month). The lowest are in Northern Ireland with an average student rent of £64 per week (£276 per month).
Demand for private student accommodation has been driven by the increasing number of students entering higher education in recent years, particularly term time students living away from home and those from overseas who are likely to be there throughout the academic year.
Most expensive University towns
The ten most expensive university towns are all in the South East. The most expensive is Guildford (£363,503), followed by Winchester (£343,332), Bath (£326,403), Oxford (£323,946) and Cambridge (£295,581). These top five most expensive towns also feature within the top seven university towns in the UK which trade at a premium to their county.
Outside southern England, the most expensive university towns are Bangor with an average house price of £245,855, Warwick (£240,332) and Cheltenham (£237,868).
Least expensive University towns
Hull is the least expensive university town with an average house price of £124,108. The average house price in Hull has increased by 79% during the past five years.
There are eight other university towns with an average house price below £150,000. These include Stoke-on-Trent (£130,336), Bradford (£131,464) and Salford (£148,338).
Strongest house price growth during the last five years
Three university towns saw average house prices rise by over 100% during a five year period. The highest was recorded in Belfast where average house prices increased from £101,272 over the five year period to £207,669, a growth of 105%; followed by Dundee (101%) and Bangor (100%).
Twenty other university towns saw average house price growth of at least 50% in the same five year period; ranging from Stoke-on-Trent where average house prices increased from £85,722 to £130,336 (52%), Preston (53%), Bradford (94%) and Aberdeen (95%).
Martin Ellis, chief economist at Halifax, commented: "The majority of the university towns we have surveyed have an average house price higher than the average for their county. "While it can be a good investment, the decision to buy a property for a son or daughter at university ultimately depends on the parents' personal circumstances and property prices around the university in question."
