Pay £34,000 extra to live near England's top state schools, research shows Tuesday, 11 September 2012
12-09-2012
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In 2012, house prices in the postal districts of the top 30 state schools in England, defined as those secondary schools that achieved the best GCSE results1 in 2011, were on average £33,631 or 12% higher than the neighbouring locations in their county. The house price premium associated with living close to the country's top state schools is almost three times the average annual private school fee of £11,422.
Overall, the typical price of a home in the postal districts of England's best state schools is £303,902. This is almost a third higher, 29% or £67,581, than the average house price across England of £236,321.
The postal districts of six of the 30 top state schools command a house price premium of over £100,000 compared to their surrounding locations. Homes in the postal district of the Henrietta Barnett School in North London have the largest premium with homes trading at a premium of 91%, or £394,282, compared to the average house price in neighbouring areas.
Homes within the postal district of the Altrincham Grammar School for Girls command the second highest premium with house prices in this Cheshire postal district trading at a premium of 74% or £148,516, compared to the county average.
The average house price of £303,902 in the postal districts of the 30 best performing state schools is 8.9 times average gross annual earnings. This is significantly higher than the average across England of 6.9 times average gross annual earnings.
Homes within the postal district of the Henrietta Barnett School are the least affordable with the typical property price of £827,496) in this part of North London costing almost nineteen times gross average earnings in the area. Homes in the postal district Altrincham Grammar School is the second least affordable at 13.2.
In contrast, homes in the postal district for Lancaster Girls' Grammar School are the most affordable among the best state schools with a house price to earnings ratio of 4.5.
The postal districts of the top performing secondary state schools in seven of the nine English regions command a house price premium compared to their county average. The North West has the largest premium with houses in postal districts of the top ten state schools in the region trading at an average of 28% or £43,437 above the average house price in the county. This is followed by the North of England3 where house prices near the top schools are almost a fifth higher than their county average.
In contrast, homes in the South West of England that are in close vicinity to the best performing schools trade at a discount of 16% compared to neighbouring locations. There is also a discount in the East Midlands of 6%.
‘In general, homes close to the nation's top performing state schools command a significant premium over neighbouring areas. The presence of a good school appears to help support property values in many of these locations as parents compete with other buyers and investors to land the property that gives their child the best possible chance to attend their chosen school,’ said Suren Thiru, housing economist at Lloyds TSB.
‘The downside of high property values in many of these areas is that it can create a financial barrier to attending the best non fee paying schools, with many lower and middle income families finding it very difficult to purchase a home in these locations,’ added Thiru.
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