Huge rise in city house prices

Coventry Telegraph - - FRONT PAGE - By LAURA HART­LEY News Re­porter laura.hart­ley@reach­plc.com

HOUSE prices in Coven­try have soared more than 60 per cent in just the last three years.

Coven­try is now the top univer­sity city in the coun­try for house price growth, with av­er­age prop­erty prices ris­ing by al­most two-thirds since 2015.

Three years ago, an av­er­age prop­erty in Coven­try would have set buy­ers back £114,625, but that same home to­day would be worth £184,690.

That’s a mas­sive in­crease of £70,065 in three years - more than twice of what the av­er­age na­tional in­crease.

The re­search comes from on­line es­tate agents Hous­es­im­ple.com, who re­vealed that prop­erty prices have in­creased by 61 per cent be­tween June 2015 and June 2018, ac­cord­ing to Land Registry fig­ures.

The in­crease in prices are so high that they would have cov­ered the £27,250 tu­ition fees for two stu­dents at Coven­try Univer­sity - with money left over.

The rea­son for the growth is linked to the grow­ing lo­cal econ­omy in Coven­try, and the city’s huge de­vel­op­ment for the city cen­tre.

The firm says if the av­er­age rate of growth con­tin­ued at the same level for the next three years, par­ents with chil­dren head­ing to any of these uni­ver­si­ties in Septem­ber could pur­chase a buy-to-let prop­erty and fund the en­tire de­gree course with money left over for liv­ing costs, from house price growth alone.

Sam Mitchell, CEO of on­line es­tate agents Hous­es­im­ple.com said: “The cost of a three-year de­gree at many uni­ver­si­ties is fast ap­proach­ing £30,000, and that’s just to cover tu­ition fees.

“There’s also ac­com­mo­da­tion costs and gen­eral liv­ing ex­penses to think about.

“If you are in a po­si­tion to buy a sec­ond home, pur­chas­ing a prop­erty in the town or city where your child is study­ing could pro­vide a pos­si­ble so­lu­tion and give your off­spring a debt-free start in life af­ter univer­sity.

“By in­vest­ing in a sec­ond home, the in­crease in cap­i­tal value alone could cover the cost of tu­ition fees.

“Of course, there’s no guar­an­tee house prices will con­tinue to rise at the rate they have in many of these cities since 2015, but this is one con­ceiv­able way to help cover the cost of higher ed­u­ca­tion in the medium term.”

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.