The latest research by central London estate agency, Bective, has revealed that London homebuyers pay the highest house premium when looking to secure a property close to an outstanding school.
Bective analysed house price data across postcodes within 0.25miles of schools rated as excellent by Ofsted before comparing this house price premium to the current average in each region, to reveal just how much more a good school will cost you and how it differs across England.
Across England, those looking to live within arm’s reach of an excellent school are prepared to pay an average of 2.5% more for their home. That’s £7,235 on the current average house price of £285,113.
When it comes to the highest house price premium in percentage terms, the East Midlands ranks top, where a home close to an excellent school will cost you 4.4% more, with Yorkshire and the Humber (4.1%), the North East (3.4%) and the West Midlands (3.2%) also home to some of the highest premiums.
However, when it comes to the actual price premium paid to live close to an excellent school, London is home to the highest additional property price cost for a great school.
Homebuyers pay 2.9% more on average to live within walking distance of an excellent London school and on the current London house price of £516,285, that’s £15,143 more than the average homebuyer in the capital.
It’s also over £5,000 more than the second-highest pounds and pence price premium, with homebuyers in the East Midlands paying £10,024 to live close to an excellent school.
Bective’s Head of Sales, Craig Tonkin, commented:
“London is not only home to the highest house prices in the nation, but it also boasts some of the best schools and so it comes as no surprise that homebuyers are willing to pay above and beyond to secure a home within their catchment areas.
Of course, for some, private schooling means that living within close proximity of their chosen school is more about convenience than necessity and for a certain segment of homebuyers, schooling will be one of the predominant factors behind their decision to purchase a home.”
House price premium data for areas within 0.25 miles of an excellent rated state school sourced from PropertyData.
Regional house price data sourced from the Gov.uk UK House Price Index (October 2021 – latest available)
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