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According to analysis by real estate agency Yopa, living near schools rated “outstanding” means house prices are more expensive than those of lower-rated schools and surrounding areas.
Property prices near schools rated “outstanding” average £359,000, those near “good” schools average £305,000, those in postcodes rated “requires improvement” have property prices of £277,000 and finally those in schools rated “inadequate” have property prices of £243,000.
So it would cost £116,000 more to live near an “outstanding” school than near an “inadequate” one.
“A worthwhile investment”
Verona Frankish, chief executive of Yopa, said: “Currently there is a £116,000 difference between the best and worst schools, but some will see it as a worthwhile investment to give their children the advantage of a better education, and it is fair to say that those who can afford to give their children a private education are best placed to withstand these rising property prices.”
“This may mean that more homeowners find it difficult to live in areas with highly rated schools, but contrary to general trends, living close to the UK’s best schools is not necessarily expensive and some of the best schools are actually relatively affordable when compared to the wider area, so it’s always worth doing your research.”
Labour’s VAT plans
With Labour announcing plans in January to end VAT concessions for private schools, more parents may find it more cost-effective to send their children to high-quality state schools in the coming years.
This could widen the gap in property prices between areas near the best- and worst-performing schools.
Verona Frankish added: “Labour’s move to remove VAT relief for private schools will make private school tuition fees more expensive and may encourage more parents to send their children to highly rated state schools.”
“Living near good public schools already demands higher rents, and if more people move nearby, the rent gap between the best and worst schools could widen even further.”
School price and area
On average, postcodes boasting good schools have median house prices that are around 2.8% higher compared to the average across their local authorities.
For ‘good’ schools, the outcode price is around the same as the local authority as a whole at £305,000, 0.5% lower than the average price of £307,000.
However, if it is in the same outcode as a school that “requires improvement”, the cost will be £277,000 – 4.6% less than the local authority’s £291,000.
The same is true for schools rated ‘inadequate’, where living nearby is 10.4% cheaper than the local authority at £271,000 compared to £243,000.
Where good schools command the highest premium
The biggest gap between property prices near schools and the surrounding areas is in TQ8 in Devon, where to live in the same outcode as Salcombe Church of England Primary School, rated ‘good’, would cost a massive £822,000 – 151.5% more than the local authority price of £327,000.
Northumberland’s NE20 district has six schools, five of which are rated “good” and one “outstanding”. To live in the same area would cost £450,000 – more than double (121.7%) the typical local authority price of £203,000.
The situation is similar in Cumberland, where CA12 has four “good” schools and one “outstanding” school with an average price of £378,000, 121.6% higher than the local authority price of £170,000.
Bucking the trend
Living closer to a “good” school usually means higher costs, but that’s not always the case.
For example, a property at the “excellent” St Catherine’s Catholic Primary School (Hallam) Sheffield in S4 Outcord is priced at £94,000, 57.6% cheaper than the local authority price of £221,000.
By contrast, in East Sussex postcode TN3, where St Michael’s Primary School is rated as “requiring improvement”, the average house price is around 121.1% higher than the surrounding area.
So while home prices generally correlate with better schools, this isn’t always the case.
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