New research from Halifax Estate Agents says that 20 university towns across the UK recorded an increase in house prices of 20% or more over the past year, close to double the nationwide increase of 11%.

The best performing university town was Belfast, home of Queen’s University, with a 47% rise in its average house price over the year to June 2007. University towns, on average, saw an increase in house prices of over 14% over the year to June 2007, comfortably outpacing the UK average.

Seven university towns recorded a 50% or more house price increase over the past three years. Belfast was again the best performer with a 97% increase in its average price over the three years to June 2007. The next two best performers were in Scotland, Aberdeen (75%) and Dundee (64%) followed by Tower Hamlets (61% in London), home of East London University.

Colin Kemp, managing director of Halifax Estate Agents, said: “More than one quarter of university towns have seen house prices increases of at least 20% over the past year. University towns are popular choices for home movers because they usually have a wide range of local facilities, while investors have been attracted by the steady increase in university populations.

“The best ranked university towns, including Oxford and Cambridge, tend to trade at a premium to surrounding towns, but some of the top 20 ranked universities have lower house prices, including Coventry, home of Warwick University, and Bristol.”