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Student surge sends house prices soaring 30%

University town Coleraine has seen a 34% rise in house prices following a 30% jump in its student population.

Six out of 10 university towns across the UK have seen house price rises which have outstripped the gains made across their region as a whole during the past five years, according to Lloyds TSB.

The biggest price increases have been seen in towns that have seen a significant rise in their student population during the same period.

Aberdeen has seen the biggest jump in house prices for a university town since 2005, with the average cost of a property rising by nearly 40% during the period.

The rise, which was more than double the 14% reported across the whole of Scotland, coincided with a 54% jump in the number of students studying in the city.

House prices in Winchester have risen by 30% during the past five years, compared with an increase of just 2.5% across the whole of the South East, while student numbers in the town have soared by 78%.

A similar pattern has been seen in Carmarthen in Wales, with house prices rising by 29% since 2005, compared with a 4.4% fall across the rest of Wales, while student numbers are 69% higher.