University towns home prices soar

House prices in university towns have soared in the past five years, figures from a mortgage lender show.

All 10 of the UK's most expensive university towns are in southern England, with Guildford having the highest prices, the Halifax said.

The average price of a home there is £363,503, with Winchester next at £343,332 and Bath at £326,403.

The cost of a home in Belfast soared by 105% from June 2003 to June 2008, by 101% in Dundee and 100% in Bangor.

A further 20 university towns saw average price rises of at least 50% during the five years, with Aberdeen and Bradford leading the way with increases of 95% and 94% respectively.

Lending slowing

At the other end of the scale, Hull has the most affordable accommodation of all university towns, with average house prices at £124,108.

Next are Stoke-on-Trent at £130,336 and Bradford at £131,464.

The survey comes as the credit crunch sees house prices falling across the UK at their fastest rate in 18 years and mortgage lending slowing dramatically.

Halifax, which looked at house prices in 64 university towns excluding London, said that in nine, properties sold at a premium of at least £20,000.

Winchester commanded the biggest premium of £114,489 or 50%.

"While it can be a good investment, the decision to buy a property for a son or daughter at university ultimately depends on the parents' personal circumstances and property prices around the university in question," said Halifax economist Nitesh Patel.