Latest research from Hamptons International shows that homes located close to independent schools and university towns are more stable investments than average UK properties. Properties in these areas are shown to retain their value, generate more rental income and generally recover at a faster pace from a housing market downturn than average UK properties.
According to the data, the national average UK property price in 2014 was at £173,500 contrasting with an average price of £354,000 for a home within a two mile radius of an independent school or university town. House prices in these areas currently stand at 116% of their 2007 peak in comparison with 98% for England and Wales as a whole.
London’s housing market has also reflected this trend in its property prices with houses close to independent schools at 66% higher than they were in 2007, compared with the average increase of 30%. Properties close to prestigious Westminster School (where Nick Clegg was a former student) are around 100% more than in 2007.
Data reveals that more than 35,000 overseas students are taught in independent schools within the UK and an additional 258,000 enrolled in university, representing an increase of 4% year-on-year.
Residential research director at Hampton’s, Fionnuala Earley said: “For many overseas parents with children studying in the UK this is a catalyst to investing in property – be this a student flat or a larger family home. For overseas investors looking to buy in the UK our research shows that average property prices within a two mile radius of an independent school have outperformed the national average. Similarly in university towns, capital and rental growth, boosted by student and employer demand alike continues to offer an attractive proposition to investors.”
Four out of five of the highest ranking universities in Europe are located in the UK, together with some of the most prestigious independent schools. This is undeniably a motivating factor behind foreign and domestic investment in property close to British educational establishments.