Parents face a £21,000 house price premium to live near one of Britain’s top 500 state primary schools, new analysis suggests.
Demand to get a home in the catchment area of a high performing state school is rising against the background of plans to charge VAT on private school fees.
Research by the bank Santander found proximity to a good school is now the most important factor for parents when choosing where to buy property, overtaking closeness to friends and family, and transport links.
Santander said that parents face paying an average 5 percent more to be close to the best ranked primary schools outside London – this equates to £21,215.
The same study found nearly two-thirds of parents would be willing to move up to 25 miles to find a home in their preferred catchment area – with 10 percent willing to move up to 40 miles.
Winkworth estate agent chief executive, Dominic Agace, argues the VAT change for private schools could drive up the price premium for living near a good state school to as much as 20 percent.
“We will start to see people investing what they would have paid in school fees into a house near a good state school,” he told the Property Exchange podcast.
“We could see up to a 20 percent premium for homes in the catchment areas of good schools.”
He added: “We will also see people moving to the country to areas with good local state schools where they can still connect into London or where they will get more for their money, enabling them to still afford school fees.”
Santander’s research shows the proportion of parents willing to pay more to be near a good state school has risen from one in four to two in three over the past five years.
Graham Sellar, at Santander, said: “It’s clear that nabbing a sought-after primary school place for your child is playing an increasingly significant role in the property market for parents.
“With almost a fifth of people up for taking the plunge and moving homes to secure their child a school place, it’s no wonder that this has created a sizeable school catchment premium.
“However, with parents willing to pay more than double the current premium to get into the area, along with prices remaining largely flat over the past 12 months and mortgage rates lower than last year’s highs, parents might find moving more affordable than initially expected.”
