House price growth can fund university

Ryan Bembridge

September 5, 2016

House price growth in the UK’s university cities is covering the cost of tuition fees in most cases, research from online estate agents has found.

In the past three years property prices in the top 50 university cities have risen by more than 27%, or £66,000.

In three in five cases (60%) house price growth would have covered the £27,000 tuition fees for students on a three years course.

Alex Gosling, chief executive of, said: “It’s hardly surprising that young people are thinking twice about heading off to university when they’re faced with a £27,000 headache that they have to pay back.

“But for those parents fortunate enough to be able to afford a second property, there could be a way to give your offspring a debt-free start in life, depending on where they go to university.

“There’s a good chance parents of undergraduates will be expected to help cover the cost of rent, tuition or both.

“By investing in a second home, your child won’t have to pay living costs, as the rent will cover that, and the increase in capital value could cover the cost of tuition fees.”

In Birmingham average house prices have risen by £42,697 since 2013 to stand at £153,926, while price rose by £42,697 in York, £36,520 in Southampton, £36,185 in Norwich, £35,284 in Portsmouth and £30,108 in Manchester.

HouseSimple said Queen’s University, Belfast, was ‘top of the class’ as a place to invest where average prices are just £110,042 and based on three year growth of £20,766.

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