Rising University towns house prices great news for investors
The housing market in Welsh university towns, has seen a significant boost thanks to an increase in student numbers, according to new research.
A large house price increase has been seen in towns where the student population has risen during the same period.
Lloyds TSB reports that 6 out of 10 UK university towns have witnessed a hike in house prices much higher than the average gains made across their region over the past five years.
With a 69% rise in student numbers, Carmarthen has seen a 29% jump in house prices since 2005, compared to a 4.4% fall in prices across Wales in general.
In Ceredigion, home to Aberystwyth and Lampeter universities, house prices are up 12%, following an increase of 91% in students.
And in Gwynedd, where student numbers are up by 25%, house prices are up 4% over the past 5 years.
This has not been the same situation however in Wales’ larger university towns and cities. Housing prices in Cardiff have remained flat for the last 5 years, despite having the largest population of students in Wales and a 20% increase in students over the same period.
Pontypridd prices have also dropped by 19%, also despite a 17% rise in students.
In other parts of the UK, Aberdeen has seen the highest rise in house prices of 40% since 2005, coinciding with a rise in students of 54%.
“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,” said Nitesh Patel, housing economist at Lloyds TSB.
Delyth Davies, of Carmarthen estate agents Clee Tompkinson and Francis, said: “We have definitely seen an increase in demand for student houses, whether that be through parents who are looking to invest in houses for their children who are students, or by investors looking to rent to students.
“We have recently sold a number of slightly larger properties within walking distance of the university, which investors intend to rent to students.”
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- Average Student Spends £12,000 On Buy-To-Let
Tags: buy to let, buy-to-let investor, first time buyers, property rental
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