House prices increase by £39,000 during course

House prices in university towns surge by nearly £39,000 on average over the course of a three-year degree course, analysis has found.

The towns and cities in Halifax’s study have seen an average increase of 22.5% or £38,666 since 2014.

Across the 65 UK areas included, the average price grew from £172,179 to £210,845 – equating to an increase of £1,074 per month.

The survey, which did not include London, found the 10 university towns with the largest price growth over the last three years were all in southern England.

The largest growth in cash terms was in Guildford, home to Surrey University, which increased by £105,362 and was also the most expensive university town in the study, with an average price of £511,673.

The greatest percentage increase was in Bedfordshire, where house prices rose 42% to reach £284,707 on average.

The least expensive was Paisley, with an average of £122,681. Other less expensive towns and cities included Bradford (£127,643) and Hull (£134,938).

Over a course lasting four years, prices in university towns have seen an average increase of 34% or £53,755 since 2013, the research found.

Over the last five years, the growth has been more significant, averaging £57,883 (38%) across the 65 areas.

Russell Galley, managing director of Halifax Community Bank, said: “While it is well documented that the student housing market can be lucrative for private landlords receiving monthly rental incomes, this research also indicates the potential earnings from bricks and mortar alone.”