Be your child’s landlord- 16/09/04

Be your child’s landlord

The price of property in most of the UK's major university towns has doubled during the past five years, new figures show. The biggest increase was seen in Bath, where the cost of the average home soared by 156% to £258,379, according to Halifax Estate Agents. However recent data from the Halifax indicated house prices fell 0.6% last month, investing in your children’s future, while protecting your own could be the right move now.

It said property prices in 10 of the 13 top university towns and cities outside London had risen by more than the national average of 103% since 1999. The group said parents were increasingly looking at buying investment properties for their children. This was because accommodation accounted for a substantial part of the cost of sending a child to university.

Strong rises were also recorded in Sheffield, with prices increasing by 133%, while in York they are 130% higher than they were five years ago. In Birmingham and Durham house prices moved up in line with the national average of 103%, while in Oxford and Cambridge they slightly under-performed at 99% and 100% respectively.

Halifax looked at house prices around the top 20 universities in Britain. It said the lowest increase was seen in St Andrews, where the cost of property rose by 62% during the past five years, followed by London where it was up by 63%.

Halifax Estate Agents Managing Director Jane Pridgeon said: "Feedback from our estate agents in university towns and cities shows that potential student properties are in high demand." The falling of house prices could mean you can now afford to step on the Buy to Let ladder.

Written By Simon Johnson
Xbridge Decision Finance

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