Do Schools Affect House Prices?
Estimated reading time 6 minutes
Whenever moving house is on the cards, one of the key considerations for families can often be the schools in the area. Are they good enough for the children? How far away are they? What did they get on their Ofsted inspection? All valid questions. After all, you want the best for your children, and school is as good a place as any to help set them on the right path.
But have you double-checked the house prices? Are those nearer the schools more expensive than those further afield?
Well, in most cases yes. Back in 2017, the Government carried out research into whether houses close to the best-performing schools cost more and unsurprisingly they found that they did. In fact, properties near the best 10% of primary schools were 8% more expensive than those in surrounding areas, and 6.8% more expensive near the 10% best performing secondary schools.
But we aren’t in 2017 anymore so is it still the same 6 years on?
Are house prices higher in 2023 when properties are nearer a school?
There has not yet been a 2023 study conducted to look into this but in both 2019 and 2022, the correlation between schools and house prices was looked at again.
In the 2019 study, it was found that the average house price in England where the top-rated schools were came in at just over £330,000, a huge £100,000 more than the average property prices near schools that were graded as inadequate by Ofsted.
In 2022, an additional report found that even though the housing market was in a state of flux, the average house price for properties close to Oftsed-rated outstanding schools in both the primary and secondary sector was 49% higher than the national average. The very same report also showed that many parents were paying a 2% premium on properties in the postcodes of the best schools in the area when compared to similar properties in the same town. In London, this premium is higher still with those looking to get their children into the more highly regarded schools paying 3% more.
This though, pales into insignificance when you look at some of the other areas across the UK. In some parts of Sheffield and London, it was found that to live in the postcode of a top-ranked primary school, you could be paying as much as 81% more for a property.
Using Totley All Saints CoE Primary as an example, the average house price for the town itself came in at £231,721. Now looking at the average house price in the postcode of the school and properties were exchanging hands for £418,473.
Secondary schools were showing similar results too. Valentines High School in London sees parents pay a 56% premium for a property in the same postcode. The average house price for the area was £321,500 but within the school postcode, it was a shade over £500,000.
Where can you buy the cheapest houses close to the best schools?
At the time of the latest report, it was discovered that you could find a 3-bed house in Bradford for less than £80,000 in the catchment area of outstanding primary schools. The other remaining schools on the list were also based in the north of the country where house prices were only rarely breaking the £200,000 mark.
It was similar with secondary schools where Stockton-on-Tees, Manchester and Northwich all saw 3-bed properties within the catchment areas of outstanding secondary schools costing under £200,000.
Where will you find the most expensive houses next to the best schools?
We have already referenced examples of the high premiums that you can expect in some areas of the country and most are in the south of the country.
The most expensive area though seems to be Camden. If you are looking to be close to an outstanding primary school there, you could be paying just shy of £1m for a property, over 12 times more than the house prices in Bradford. For secondary schools, London still dominates with Tower Hamlets seeing the properties nearest outstanding secondary schools costing £850,000.
What are the advantages of living near a school?
There are a variety of advantages to living near a school, each delivering a different type of benefit. The reputation of the school goes someway to dictating the house price and this can make the area become much more sought after. As a result, when it comes to selling, you can be in an area that enjoys much better growth than other parts of the same town.
This can then lead to a faster sale as people look to secure the property that stands to benefit their child’s education.
This can also go the other way, especially for the properties right next to the schools. For many, being closer to a school is not ideal. The excess noise, increased traffic and other social issues may see prices of the houses closest to the school come in lower than average at times.
Being closer to the school also has other benefits. The potential for the children to walk to school adds a little more exercise to their daily routine, this then adds to the chance to interact with others and build more friendships. It also gives the children that bit of freedom that they may have been hoping for but not yet been able to have. When they are allowed to walk to school by themselves, it can help them mature as they feel more responsible for completing a task that was always previously under the guidance of a parent.
What are the disadvantages of living near a school?
Of course, the house prices being higher could make it harder to sell, especially in the current climate. So, whilst you may have thought that at first, you had a strong hand to play, it may not be the case. This could then lead to a slow, drawn-out sale when in reality a fast house sale is your goal.
Aside from the property-selling difficulty you may encounter, other social issues may make living next to a school a more negative experience.
Increased noise and traffic are just part of the problem you may encounter with the potential for a high level of littering, loitering and potentially even crime all being possible. If you are even closer to the school, you will no doubt find daily bouts of noise from playtime and sports days as well as blocked roads, driveways and paths.
Should you be looking to sell so that you can secure a property near a better school or want to sell as living near a school is too disruptive, speak to Gaffsy. Operating as a cash house buyer, we can have your home sold in as little as seven days so that you can make the next steps in your property plans happen quickly. We buy any home, so regardless of location or condition, we get you your sale! Contact us today or get a free cash offer so we can get your house sold!