'New' universities contribute to higher mortgage rates

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'New' universities contribute to higher mortgage rates

Research from Lloyds TSB into new university town house prices offers some explanations into the national increase in property valuations over the past 20 years.

Following the conversion of many 1960s polytechnics into universities after 1992, average house prices in 'new' university towns increased by 70 per cent.

Towns such as Bangor, Carlisle and Sunderland recorded the biggest property price jumps at 129, 110 and 108 per cent respectively. Others such as Bradford, Pontypridd and Plymouth more than doubled, with average valuations in Bradford reaching £108,282.

Although this figure still represents some of the lowest property prices in the UK, it nevertheless illustrates the "positive impact on house prices" students have had on the property sector in these towns, claimed Nitesh Patel, housing economist at Lloyds TSB.

"Increased student demand for accommodation is also likely to have added to upward pressures on rental values in university towns, increasing their attractiveness to landlords," added Mr Patel.

Meanwhile, Jonathan Moore of student property research website HomesForStudents.co.uk advised that potential landlords thinking of investing in the student rental market should prioritise the location of their property and its proximity to campuses and amenities above all else.

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