Influx of students boosts house prices

New students boost house prices in university towns, analysis from Lloyds TSB shows.

A total of 60% of university towns across the UK have seen house price growth outperform the region in the past five years.

The biggest increases appear in towns that have seen a real uplift in the number of students over the same time.

For instance, Aberdeen, home to 29,300 students, has seen a house price gain of almost 40% over five years, compared to 14% price growth across Scotland.

In Winchester, prices rose by 30% compared to 2.5% in the South East at the same time that student numbers in the town were boosted by 78%.

Winchester’s average house price of £385,713 is 114% above the UK average of £180,501.

But other areas such as Leeds, Manchester and Nottingham have had a more mixed experience.

In all cities the student population has risen by over a third, but only the West Yorkshire city has an average house price above that of the region.

Nitesh Patel, housing economist at Lloyds TSB says: “Growing student numbers have had a big impact in boosting house prices in some university towns – where the increase in demand has led to the local market outperforming the rest of the region.

“But it’s a very mixed picture for some of UK’s largest university towns that have seen student population increase significantly without impacting on house prices.”

In the past five years population across the university towns in UK has increased by nearly a million students.