Tuesday 26 September 2017

How state schools impact the housing market

A new study  has shown that parents in England are prepared to pay a considerable premium if they want to live near a top state secondary school.

The report showed that homes near the best secondary schools command an average house price of £415,844, adding 45pc to the English average.

The data from Lloyds Bank reveals that over the past five years, the average property price in areas with a top-performing state school has grown by £116,696 (39pc), compared to a rise of £51,264 (22pc) across England.

Rental prices are similarly affected by the location of secondary schools.

The study noted how this can impact on the social mix of those state schools, stating  “The popularity of areas close to high performing schools may mean that homes remain unaffordable for buyers on average earnings.”

Many families do make house buying decisions without fully understanding their preferred school’s admissions criteria.  For example, a selective grammar school or faith school will view the location of the house as a less important consideration than academic ability or church attendance when admitting pupils.  Even factors such as sibling priority can alter the “catchment” area of a school year on year, especially in urban areas.