Parents who want to live near the top schools in the country so their children can receive a stellar education must now pay a 28 per cent premium for their homes, new research reveals.
Proximity to good state schools is often a factor families consider when choosing the spot they want to call home, and now the sky-high premiums these locations demand has been laid bare.
Families who want to buy a house in one of the top ten neighbourhoods for schooling will have to fork out an average of £695,018 – 28 per cent more when compared to other homes in their region.
That’s according to estate agent Savills, which has ranked constituencies across England on how well students are doing academically and whether an area is likely to have high performing schools.
Homes in the top ten per cent of areas for schools command a 28 per cent price premiumÂ
It found eight of the top ten neighbourhoods for schooling are in London. Plus, almost seven in ten of the top 20 per cent of constituencies for schools are in London or the south east, where property price tags are typically higher.
To buy a home in the top ten to 20 per cent of constituencies will set you back £484,811 – a 13 per cent increase on the regional average. In the top 20 to 30 per cent the price tag is £423,640 – a 15 per cent hike once regionally adjusted.
Richmond Park – an affluent area in the south west of London – tops the list for primary and secondary schooling. However, buying a property near in the area will cost a pretty penny as price tags average £1,016,000.
When compared with the regional average house price, there is still a 51 per cent premium on the price tag.
Next is Sutton and Cheam, on the outskirts of London, with a £518,988 price tag (23 per cent less than the regional average).
Outside of the capital, the best spot for schools is Altrincham and Sale West, which is in Greater Manchester. Property price tags average £534,427, a huge 121 per cent hike when compared to other homes in the north west region.
The most expensive spot out of the the top 25 schooling constituencies is Kensington, London’s exclusive neighbourhood where properties are an average of slightly more than £2million, Savills says. That’s a 198 per cent hike on the London average.
Only one constituency in Yorkshire and the Humber makes these top 25 spots – Sheffield Hallam.
House prices here are a more modest £397,757 – but it is still some 71 per cent more than an average home in the region.
It comes as parents must fork out as much as 20 per cent more for private school fees following Labour’s VAT hikes in January.
The surge in prices means that families could be paying thousands if not tens of thousands of pounds extra every year in school fees.
As such, families are now much more likely to pay a premium to live near some of the top state schools in the country to still get an education without the hefty price hike.
Lucian Cook, head of residential research at Savills, says: ‘There is a well-established link between house prices and access to high-performing schools. Families often judge the desirability of an area by the reputation of its schools, based on a on a long-term perception of track record, and are willing to pay more to live in the associated catchment areas.
‘This is likely to become more pronounced with the rise of private school fees. Although we haven’t seen a mass exodus from the private sector, there is likely to be a steady rise in families looking to access the best state schools over time, putting further pressure on surrounding home values.’
However, simply living near a top state school doesn’t guarantee admission.
Many of the top state institutions in the country won’t accept pupils based on catchment areas, but may instead use admissions tests or similar.
Plus, if a school is oversubscribed even with a catchment area in place other measures may be used to decide which pupils are admitted.
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