Average property prices in the UK’s top 50 university cities have risen by more than 27% or £66,000 in the past three years, according to research by online estate agents HouseSimple.com. And in 60% of these cities - for students on a three-year degree graduating this year - house price growth would have covered the £27,000 tuition fees they had to pay - or rather their parents had to pay.
HouseSimple has identified university cities where parents could buy a second home or buy-to-let for their child to live in while they’re studying, and the house price growth over the duration of their three-year degree could cover the cost of tuition. HouseSimple has looked at how local property markets have performed since 2013 to calculate potential price growth over the next three years, for students starting university in September.
For example, parents with kids starting at Manchester University could easily cover tuition fees for a three-year degree on house price growth alone, assuming prices continue to increase at the rate they have since 2013. An average property in Manchester is currently £147,700, while house prices have risen on average £10,036 a year over the past three years. That’s a total profit of £30,108 to cover course fees.
Similarly, in Birmingham the current average property price is £153,926, and prices have increased £42,697 since 2013. If the average rate of growth continued at the same level for the next three years, parents with children studying at Birmingham or Aston could cover tuition fees and general living costs on house price growth alone.
