Parents pay £21k more to live close to best state schools
Property prices in the catchment area of England’s 30 best state schools are £21,000 higher than the average across the rest of the counties they are situated in, research has revealed.
Analysis has shown that the average house price in the postal districts of the top state schools for GCSE results in 2013 now stands at £268,098. That’s £20,955, or 8%, higher than the typical price across the rest of county the school is located in (at £247,143).
In some areas, the top state school premium reaches almost £500,000, according to Lloyds Bank. For example, homes near Beaconsfield High School in Buckinghamshire go for £483,031 – or 154% – more than the average house price of £313,878 in neighbouring areas.
Living close to Bishop Vesey’s Grammar School in the West Midlands will set parents back an extra 79% of the average house price across the rest of the county, and 62% for Clitheroe Royal Grammar School in Lancashire.
The South East has the largest premium, with average house prices close to the region’s top 10 state schools selling for 27% (£72,314) more than the average house price in their county. Across East Anglia the premium dips slightly to 25%, and in the North West to 24%.
Marc Page, Lloyds Bank mortgages director, said: "House prices close to the nation's top performing state schools appear to be commanding a significant premium over properties in surrounding areas. There is strong competition for properties in areas where state schools are providing top quality education, often in locations with limited supply, which is supporting prices.
"Although property values can be significantly lower in neighbouring areas, many parents don't appear to be put off from paying a premium to ensure their child has the best possible chance to attend their chosen school."
The Lloyds research also indicates that the average house price near England’s top 30 schools costs 7.6 times average gross annual earnings of £35,157, compared to the 7.4 average across England.
However, half of the best state schools can be found in areas where prices are less than the county average. For example, homes close to Devonport High School for Girls in Devon are 38%, or £83,375, cheaper than the county average at £134,261, compared to £217,636.
The biggest cash discount applies to homes near Reading School, where the average house price of £212,994 is £107,979 lower than the Berkshire county average.