1/9/2008

House prices in Bangor, North Wales, have doubled over the past five years, according to new research from Halifax.

The firm's latest study of house prices in university towns shows that the average property in Bangor is now worth 245,885 pounds.

Property values have increased by 100 per cent since 2003, with Bangor's performance third only to Belfast and Dundee where prices have risen by a respective 105 and 101 per cent.

Bangor is now the most expensive town outside of southern England, closely followed by Warwick where the average property price is 240,332, and Cheltenham where a typical home costs 237,868.

House price growth of at least 50 per cent over the past five years was noted in an additional 20 locations including Stoke on Trent, Preston and Aberdeen.

Commenting on the figures, Halifax economist Nitesh Patel said: "While it can be a good investment, the decision to buy a property for a son or daughter at university ultimately depends on the parents' personal circumstances and property prices around the university in question."

The news came as it was reported that the number of mortgages approved for people buying homes in England and Wales fell by 71 per cent during the past year.

Only 33,000 mortgages were approved for house purchase during July - 6% fewer than in June, and down from 114,000 in July last year, according to the Bank of England.