Interesting new research out this week shows that property investment could be a way to cover university tuition fees.
In many areas of the country, the rise in house prices is the equivalent or even more than a student pays in tuition fees over a three-year degree course.
Online estate agents Housesimple looked at property prices in the UK’s top 50 university cities and found that in more than half – 56% – the rise in property prices was more than the £27,250 tuition fees that would have been paid by anybody graduating this summer.
With students returning to university in the next few weeks, this is an interesting finding. The research shows that Coventry is the top university city for house price growth, with average property prices rising 61%, from £114,625 to £184,690, since the latest graduates started their three-year degree courses in 2015.
And in seven university cities, including Loughborough, Manchester and Southampton, current average house prices are below the UK average, and price growth since 2015 would have paid for entire tuition fees of £27,250.
Property investment: are second homes the answer?
This research suggests that parents who can afford to might consider investing in property in the cities where their children go to university, as the increase in value may well cover three years’ tuition fees.
Sam Mitchell, Housesimple chief executive officer, says: “If you are in a position to buy a second home, purchasing a property in the town or city where your child is studying could provide a possible solution and give your offspring a debt-free start in life after university. By investing in a second home, the increase in capital value alone could cover the cost of tuition fees.
“Of course, there’s no guarantee house prices will continue to rise at the rate they have in many of these cities since 2015, but this is one conceivable way to help cover the cost of higher education in the medium term.”
If you’re interested in property investment and need help with conveyancing, please get in touch with the legal team here at Optimum.