In new research conducted by London estate agency, Bective, it was discovered that homebuyers on the search for a property near an outstanding school pay the highest prices.
When deciding whether a child should be considered for a place at a school, the distance they live is taken into consideration. As a result, school catchment areas are extremely important when it comes to giving a child the best education.
House price data across postcodes within 0.25 miles of schools that were rated excellent by The Office for Standards in Education, Children's Services and Skills (Ofsted) were analysed. House price premiums were then compared to the average in each region.
By analysing and comparing these factor Bective were able to discover how much more a good school would cost and how this price varies across the country.
The true cost of a good school in London
Bective’s head of sales, Craig Tonkin, comments: “London is not only home to the highest house prices in the nation, but it also boasts some of the best schools and so it comes as no surprise that homebuyers are willing to pay above and beyond to secure a home within their catchment areas."
"Of course, for some, private schooling means that living within close proximity of their chosen school is more about convenience than necessity and for a certain segment of homebuyers, schooling will be one of the predominant factors behind their decision to purchase a home.”
The research shows that parents hoping to live close to excellent schools are willing to pay 2.5% more for their home on average. This is the equivalent of £7,235 more than the average house price of £285,113.
Parents hoping to secure their child a place at a school in the East Midlands can expect to pay the highest house price premium. In this location, a home near an excellent school costs 4.4% more. Other locations with the highest premiums include Yorkshire and the Humber (4.1%), the North East (3.4%), and the West Midlands (3.2%).
In terms of the price premium paid to live near an excellent school, the research shows that London has the highest additional property prices for a great school.
On average homebuyers are expected to pay around 2.9% more to live near a top rated school in London. With the average house price in the capital costing around £516,285, this totals around £15,143 more than the average price.