During the recent debate on whether selection should be expanded for secondary school selection, Prime Minister Theresa May stated that “we have selection by house price.”What is the reality, does living near a good school really impact prices?
According to Santander, schools affect home values, according to their research, about 26% of parents have chosen an area with top performing state schools. In London, the premium for these areas is 15% or £71,500. Outside it’s about 11% or £24,000. For the parents that can afford it, the cost can be justified by the potential savings on rising private school fees. Critics are likely to agree with Theresa May, if you cannot afford to live in one of these areas, you are effectively blocked from these top performing schools.
The Office for Standards in Education inspect and regulate schools in England. Their reports are the primary measure of a school’s rating consequently influencing house prices. Estate Agents are quick to promote catchment area schools in their literature.
The Grammar Factor
Whatever your views about the expansion of Grammar schools, the fact is clear. Areas with the remaining grammar schools such as Kent and Buckinghamshire are particular property hot spots. These counties see an inward drift of families particularly from London seeking these high performing schools at secondary level. As a result property is in high demand putting upward pressure on pricing.
Access to good primary and secondary education is of value at the higher end of the market.