BBC News Online: Education

University towns in house price boom

The housing market may start to slow next year

The most dramatic rise was seen in Bath, where the average price of a semi-detached property rose 118% from £86,500 to £188,500 between 1997 and 2001.

Next in the bank's table of 25 major university towns was Southampton, where a 85% rise took the average price from £67,150 to £124,400.

The smallest rise was in Glasgow, where property prices increased 18% from £65,900 to £78,000, followed by Newcastle upon Tyne, which saw a 22% rise from £67,800 to £83,000.

Safety and debt fears

The bank said parents bought houses for their offspring because they wanted them to live somewhere safe and near to the university campus.

And with the abolition of student grants and the introduction of tuition fees of £1,075 (for students from more affluent backgrounds) parents were also concerned about their children building up high debts, the Halifax said.

Jane Pridgeon, Managing Director of Halifax Estate Agencies, said: "Feedback from our offices in university towns and cities shows a definite increase in this type of purchase over the past few years."

"The availability and popularity of buy-to-let and guarantor mortgages is enabling many more parents to provide this level of support to their children and at the same time take advantage of an investment opportunity," Ms Pridgeon said.