Renting out a home in many university cities would have generated enough buy to let profits to pay for a three-year degree course, according to new data.
Parents who bought a home to let from the start of a course in 2015 would have seen the value of the property go up enough to cover the £27,250 of tuition fees paid before a student left at the end of the course this summer.
Top of the class for buy to let profits was Coventry, where home prices rocketed by 61% during the course, says an analysis of Land Registry data by online estates agents Housesimple.
In June 2015, an average home in Coventry cost £114,625, but had increased to £184,690 by June 2018.
Housesimple CEO Sam Mitchell said: “Tuition fees are a stark reality now and the cost of a three-year degree at many universities is fast approaching £30,000. Add on top of that accommodation costs and general living expenses, and studying for a degree is leaving many students facing years of financial hardship when they graduate.
“Buying a property in the town or city where your child is studying could provide a possible solution and give your offspring a debt-free start in life.
“There’s a good chance parents of undergraduates will be expected to help cover the cost of rent, tuition or both. By investing in a second home, your child won’t have to pay living costs, as the rent will cover that, and the increase in capital value could cover the cost of tuition fees.”
Best performing university city property prices – 2015 – 2018
|University||Average house price June 2015||Average house price June 2018||
2015 – 2018
2015 – 2018
|Nottingham/ Nottingham Trent||£111,562||£136,565||£25,003||22.4%|