Good schools inflate house price figures

PROPERTIES in the catchment areas of some of the country’s top state schools command an average house price premium of almost £21,000, according to new research from Lloyds banking group.

The study compared average house prices from the Land Registry with GCSE performance data from the Department for Education and found the typical house near one of the top 30 state schools in the UK is £268,098. This is £20,955 or eight per cent higher than surrounding areas.

Researchers looked at the best performing state secondary schools across England based on 2013’s GCSE results. Mark Smith, of Strutt and Parker’s Oxford office, said: “Competition for properties close to the best local schools can be fierce — particularly when oversubscribed schools sometimes have admissions policies which can favour those living closest — and this pushes up prices. Many parents take a sensible long-term view and consider paying a ‘school premium’ as a good investment, not just for their children’s education but also from a financial point of view for the future.”

For example, homes near to Colyton Grammar School in Devon are on average £53,309 higher or 24 per cent more expensive than the county average. The biggest premium is to be found in the postal district of Beaconsfield High School in Buckinghamshire. Here, the average price is £796,909, some £483,000 or 154 per cent more than the typical house price in the county.

On the flipside, the biggest discount in terms of cash is the area around Reading School in Berkshire, where the average price is some £107,979 lower than the average in the whole county.