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Take out a cheap mortgage for university town homes

Date: Mon, 22 Aug 2005

Parents could benefit by taking out a cheap mortgage to invest in the profitable university accommodation market.

Halifax Estate Agents have revealed that property prices in UK university towns and cities have enjoyed a substantial increase over the past five years, whilst property investment firm Assetz suggests that rental yields are also strong.

Meaning many parents, whose offspring's recently received their A-level results, could be well placed to benefit from a growing demand for student accommodation. For example, Manchester has seen a 114 per cent rise in property values since 2000, as the city continues to be a major destination for Europe's student population.

"Rising house prices across the UK as a whole have helped parents buying property for their children in university towns and cities to enjoy excellent returns," said Colin Kemp, managing director of Halifax Estate Agents.

"However, the decision to buy a property for a son or daughter at university should ultimately depend upon the parents' personal circumstances and property prices around the university in question," he added.


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