The nearby schools will probably be a factor when choosing where to buy a house. But, living near a top school will cost you claims PwC, after examining the average house prices near a good school.
Research by auditors, PwC, reveals living near a top-performing primary school can add an extra £27,000 to a house price. While buying a home near a secondary school will cost an average of £25,000 more.
On the flip side, if you currently live near a poorly performing school, you could face a £14,000 ‘penalty’ when it comes to selling.
Average house prices near a good school
The study found that homes in the catchment area for the UK’s worst-performing secondary schools were worth £9,000 less than average house prices in the same postcode. For homes close to the primary schools that are in the bottom 10 per cent in the country, house prices were found to be £14,000 lower.
The highest average house prices near a good school were found to be in Yorkshire and Humber. This area was found to have the highest primary school premium, costing 12 per cent more than the local average to live near a top-performing school.
Homes in West Midlands were found to have the largest price increase for living near a top-performing secondary school, costing £47,000 more than the local average house price.
The quality of schools was worked out based on Ofsted ratings. The Office for Standards in Education inspects schools across the UK, giving each school a rating ranging from inadequate to outstanding. It’s these ratings that were found to influence the value of nearby homes.
Plenty of parents will take these house premiums in there stride to get their kids into the best performing school possible. However, the research also highlights how these house premiums have made it harder for low-income families to live in areas for the best schools.
‘High house prices around the good schools have the potential to lock out poorer families from the best performing schools and, while the amount varies across England, it remains a significant obstacle to social mobility across regions,’ says Jamie Durham from PwC.
So if you have children and are looking to move homes be sure to bear in mind the school premium when saving up. However, if you’re childfree first-time buyer, check the local schools Ofsted rating and see if you could make a saving on your first home.
But, remember that you could still face a penalty when you sell up.