Home industry real-estate Property Prices Surge Near Top-Rated Schools, Gap May Widen
Real Estate
CIO Bulletin
2024-08-29
Homebuyers face higher premiums for properties near 'outstanding' schools, with potential increases due to VAT changes on private education.
Living near highly rated schools comes at a premium, with homes near 'outstanding' schools averaging £359,000, significantly higher than those near 'inadequate' schools, which cost £243,000 on average, according to Yopa estate agents. The price difference amounts to £116,000, highlighting a notable disparity in the property market.
Verona Frankish, Yopa's CEO, suggests that the higher cost reflects a perceived investment in superior education. The recent Labour proposal to remove VAT relief on private schools could further widen this gap, as more parents might opt for quality state schools, pushing up demand and property prices in these areas.
The analysis reveals that properties near 'outstanding' schools often cost 2.8% more than the average for their local authority, while those near 'good' schools are roughly on par with local averages. Conversely, properties near 'requires improvement' and 'inadequate' schools are priced 4.6% and 10.4% lower, respectively.
Notably, some areas defy the trend. In Sheffield's S4 postcode, living near the 'outstanding' St Catherine’s Catholic Primary is 57.6% cheaper than the local average. Conversely, East Sussex's TN3 area, despite having a 'requires improvement' school, sees property prices 121.1% higher than its local authority.
This trend is predominantly seen in Europe, reflecting broader issues in property valuation linked to educational quality.
Digital-marketing
Artificial-intelligence
Lifestyle-and-fashion
Food-and-beverage