Properties in the catchment areas of some of the country’s top state schools command an average house price premium of almost £21,000, according to a new research from Lloyds banking group.
Properties in the catchment areas of some of the country’s top state schools command an average house price premium of almost £21,000, according to a new research from Lloyds banking group.
The study compared average house prices from the Land Registry with GCSE performance data from the Department for Education and found that the typical house near one of the top 30 state schools in the UK is £268,098. This is £20,955 or 8% higher than property prices in surrounding neighbourhoods.
Researchers looked at the best performing state secondary schools across England based on 2013’s GCSE results.
Mark Smith of Strutt & Parker's Oxford office, comments: “Competition for properties close to the best local schools can be fierce - particularly when oversubscribed schools sometimes have admission policies which can favour those living closest – and this pushes up prices. Many parents take a sensible long-term view and consider paying a ‘school premium’ as a good investment, not just for their children’s education but also from a financial point of view for the future.”
For example, homes near to Colyton Grammar School in Devon are on average £53,309 higher or 24% more expensive than the county average.
The biggest premium to live close to a top school is to be found in the postal district of Beaconsfield High School in Buckinghamshire. Here, the average price is £796,909, some £483,000 or 154% more than the typical house price across the whole of the county.
On the flipside, the report also found that half of England's top 30 state schools are in locations where the average property price is cheaper than those in neighbouring areas.
In the area surrounding Devonport High School for Girls in Devon, property values are 38% or £83,375 below their county average. In the area surrounding Stroud High School in Gloucestershire, values are 9% lower or £21,723 below their county average.
The biggest discount in terms of cash is the area surrounding Reading School in Berkshire, where the average price is some £107,979 lower than the average in the whole county.