Parents planning to live nearby to one of England’s top state secondary schools may have to pay a significant price premium, research by Lloyds Bank suggests. Average property prices in the postal districts of the top 30 state schools in England – defined as those secondary schools that achieved the best GCSE results in 2013 – have now reached £268,098. This is on average £20,955 (8%) higher than their county averages (£247,143), as calculated by Lloyds.
Parents in the postal district of the Beaconsfield High School in Buckinghamshire face paying the highest premium of £483,031 (154%), compared to the average house price in neighbouring areas.
Five of the 30 top state schools are in locations that command a house price premium of over £115,000 compared to their surrounding locations.
On the other hand, half of England’s top 30 state schools are in locations where the average property price is below the average of those in nearby locations. With an average price of £134,261, for example, properties in the postal district of Devonport High School for Girls in Devon are 38% (or £83,375) below the county average.
The largest discount can be found in the area close to Reading School where the average house price in RG1 of £212,994 is £107,979 lower than the Berkshire county average.
The top five schools out of the top thirty with a price premium higher than its county’s average include Beaconsfield High School in Buckinghamshire, Bishop Vesey’s Grammar School in the West Midlands, Clitheroe Royal Grammar School in Lancashire, St Olave’s Grammar school in Kent and Sir William Borlase’s Grammar School, also in Buckinghamshire.
Whereas Devonport High School for Girls in Devon, Heckmondwike Grammar School in West Yorkshire, Reading School in Berkshire, The Latymer School in Enfield and Sir Thomas Rich’s School in Gloucestershire are the top five schools of within the thirty with the biggest average property price reduction compared the county’s average.
“House prices close to the nation’s top performing state schools appear to be commanding a significant premium over properties in surrounding areas. There is strong competition for properties in areas where state schools are providing top quality education, often in locations with limited supply, which is supporting prices,” commented Marc Page, Mortgage Director at Lloyds Bank.
“Although property values can be significantly lower in neighbouring areas, many parents don’t appear to be put off from paying a premium to ensure their child has the best possible chance to attend their chosen school,” he added.
In the Rugby area for example, houses in Hillmorton see great demand and a premium of 10-15% over the average for semi detached houses in Rugby. Bilton High and other good schools also attract premiums, and this is reflected by the high number of house buyer and tenant inquiries we recieve for people looking in these areas. Sometimes we have to run waiting lists, open houses and “best and final” bidding processes in order to capitalise on the competative nature