New research from Lloyds TSB has revealed that parents pay an average premium of £34,000 to live within the catchment areas of the country’s best state schools. Properties for sale in NW11 were found to be the most expensive within the postal districts of the top 30 performing state schools in England.
Why? Because the Henrietta Barnett School is located within NW11, one of North London’s most desirable districts for families with young children. Properties located here trade at a premium of 91% - or £394,282 - in comparison with the surrounding areas. The average house price for properties for sale in NW11 is £827,946.
Properties for sale in Amersham located in the postal district HP6 came in second place with an average house price of £494,654. Dr Challoner’s Grammar School – a very selective and well-established boys’ school for pupils aged 11-18 – is located in HP6.
Properties for sale in Altrincham (Bowden, WA14 to be precise) located close to the Altrincham Grammar School for Girls commanded the third highest premium. House prices within this particular Cheshire postal district attract a whopping 74% premium (£148,516) in comparison with the national average.
The average annual private school fee is £11,422. The average house price premium to live near a top performing state school (£33,631) is almost three times that figure. The typical price of a property in the top 30 postal districts was calculated at £303,902; that’s 29% more than the average house price across England of £236,321. It’s also 8.9 times higher than gross national average earnings. The average across England is 6.9 times gross national average earnings.
The economic crisis is thought to be partially responsible for this trend. Many City workers have been made redundant since 2007, and those who could once afford costly private education for their kids are now looking to England’s top state schools instead.
Interestingly, there are two exceptions. Lloyds found that homes in the South West in close proximity to the best performing schools changed hands at a discount of 16%. In the East Midlands, the discount is 6%. Good news if you’re looking for properties for sale in Bristol or homes for sale in Nottingham.
There’s also good news for parents intending to send their offspring to Lancaster Girls’ Grammar School. Properties for sale in Lancaster, LA1, were found to be the most affordable on the list. Homes located within the LA1 postal district had a house price to earnings ratio of 4.5. The average house price in LA1 is £141,088. Needless to say, the school is heavily over-subscribed!
Lloyds found that the house price premium was highest in the North West. Houses located in the postal districts of the top 10 state schools in the region sold at an average of £48,437 (28%), above the average county house price. In the North of England, house prices for properties near top schools are 18% higher than county average.
Suren Thiru, housing economist at Lloyds TSB, explained why properties for sale in NW11 and properties for sale in Altrincham tend to hold their value.
“In general, homes close to the nation’s top performing 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 parent compete with other buyers and investors to land the property that gives their child the best possible chance to attend their chosen school.”
Search My Homes Unlimited for properties for sale in NW11 and homes for sale in Altrincham.
Source: Lloyds TSB.