Students fuel house price rises

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60% of university towns across the UK have seen house price growth outperform the region in the past five years, with the biggest increases appearing in towns that have seen a real uplift in the number of students over the same time, according to new analysis from Lloyds TSB.

Aberdeen – home to 29,300 students- saw a house price gain of almost 40% compared to 14% price growth across Scotland. This is coupled with a 54% increase in the student population. The University of Ulster campus is responsible for a 30% growth in student population in Coleraine since 2005 and has recorded a price increase of 34%, ahead of the 24% for Northern Ireland.

In Winchester, prices rose by 30% in comparison to 2.5% in the South East – as student numbers in the town were boosted by 78%. The average house price of £385,713 is 114% above the UK average of £180,501.

Edinburgh, having the eighth largest student population in the UK, has seen house prices rise by 11% in the last five years, as student numbers rose by over a third to 55,195. London and Glasgow recorded price growth of just 5% since 2005, although the student population rose by 76% and 43% respectively.

Nitesh Patel, housing economist at Lloyds TSB, said: “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. However

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