Keen parents in England are forking out thousands, or in some cases hundreds of thousands, of pounds more for their homes in order to ensure their children are able to attend top performing state schools.
New research from Lloyds Bank shows that many are willing to pay an average of £53,000 extra to secure homes close to schools with the best academic outcomes. The figure marks a 31% increase on last year. Average house prices have now reached £366,744 in the catchment areas surrounding England’s top 30 state schools, compared to a general average of £313,318 elsewhere.
The top performing schools are judged as those with the strongest GCSE results last year. Six of the top 30 schools appear to have pushed house prices at least a whopping £150,000 above their county averages. Homes near Beaconsfield High School in Buckinghamshire saw the biggest premium, with homes selling for almost £630,000 - 171% above the county average house price of £367,191.
The Henrietta Barnett School in Barnet, London, came second on the list with a £429,506 premium on homes, followed by The William Borlase’s Grammar School in Buckinghamshire (£220,082), The Tiffin Girls’ School in Kingston upon Thames (£192,011) and Dr Challoner’s High School, also in Buckinghamshire (£168,308).
The news follows trends of investors buying off-plan property in urban centres that are close to top facilities in order to make the most of high capital gains. In areas such as Manchester, Leeds, and Liverpool there is a building boom around the city centres and often new projects for buy-to-let are attracting new facilities to the area that will boost the price of property in the near vicinity.
Although many of the best schools in the UK are concentrated in rural or quiet areas the best universities are all located in city centre areas and this is boosting prices for off-plan property close by. In Manchester, for example, there is one of the biggest student populations in Europe and property within walking distance to Manchester, Manchester Met, or The University of Salford are seeing their prices increase quickly as the institutions increase in capacity in order to cope with demand.
X1 The Campus in Salford is a great example of the prime off-plan residential and student projects which will see strong capital appreciation thanks to their proximity to higher. Situated on the Frederick Road campus of The University of Salford, this boutique student apartment complex is already attracting strong interest from investors.
Whether it is universities, excellent schools, or simply a good supermarket, there are a range of factors that can affect demand and prices around the UK so it’s always worth keeping an eye on upcoming developments in rural and urban centres as you never know what can spark a price rise in your property.