15 September 2017

How does your local school affect your home's value?

The catchment areas of the UK's most popular schools can raise house prices nearby, as parents clamour to live in homes that allow their children to get the best possible education.

Just how much extra they have to pay depends on the area and point of comparison, but research supports there being a link between the best schools and higher house prices.

Higher grades, higher prices

Since school catchment areas can be small they create localised markets where two otherwise identical homes one mile apart can command vastly different prices.

Recent Government figures on state secondary schools in England show it costs 6.8% more to buy property in the same postcode sector as the school, compared to surrounding postcodes. This means people typically pay £15,800 more in England generally and £33,000 more in London just to live a few miles closer to their chosen school.

The primary school premium

House prices are even higher for primary than secondary schools, where it costs 8% more to be close to the best schools compared to slightly further out.

Why do primary schools have a greater impact on house prices than secondary? Paul Cheshire of London School of Economics

has come to the conclusion it's because they are more up and down in terms of quality. He also suggested parents think having a better education earlier in a child's life can be more beneficial.

Homes cost far more than the county average

Those moving from another area within the county may have to contend with a big jump in house prices. Last year Lloyds Bank concluded it costs £53,000 more to live near one of England's top 30 state schools than the average house price for those counties.

Private schools keep local property prices high

Private schools aren't bound by catchment areas so house price gains are more spread out, but the demand to live close by still raises prices. Enabling children to walk to school saves a lot of time and effort for everyone. Living close by also helps them make friends in the area and take part in extra-curricular activities like playing for a school sports team.

Comparing private and state schools

Those looking to buy a house with one eye on a nearby school should check out whether it's really worth it. Premiums near some of the best state secondaries are so extreme it could be cheaper to spend £180,000 on putting a child through a private secondary school.

Research from London estate agent Stirling Ackroyd published by the Evening Standard found that it costs nearly £330,000 more to live near the London Oratory School in Fulham than surrounding areas, while it costs close to £300,000 more at The Grey Hospital School in Westminster.

Other local area factors that could affect house prices

It's not just about good schools; good transport links can also have a big effect. House prices near Crossrail stations, which will fully open in 2019, have seen higher than average house price rises in the last 10 years, according to crowdfunding platform Property Partner.

People also love living close to nature. Houses near parks can cost 70% more than the city average, eMoov data shows. Meanwhile, research has found that properties in national parks typically cost £119,000 more than homes in other parts of the same counties.

Has your own house price gone up?

New and improved amenities near your home can affect its value just as much as any home improvements you can make.

If positive changes have been made in your local area you might find that your house has increased in value, giving you more equity in your property.

Find out how much your property is worth

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