How school catchments affect your property price
There are many factors that impact on property price but one of the most interesting aspects which plays a role in determining the price of property is school catchment areas. This has long been considered to be the case but a study undertaken in the second half of 2015 by a leading estate company provides evidence that says this belief is true. The findings suggest that the price of homes close to the secondary schools with the best records cost 25% more than similar homes in other areas.
It is important to realise that other factors may also be involved in these figures but the fact that school catchment areas can be extremely localised, sometimes splitting homes on either side of a road, suggests that schools do impact on property prices. A further study by a separate estate agent suggested that the average value of homes found within one mile of the Top 50 schools in the UK is 16% higher than the local area’s average value.
Parents want the best for the child or children
It is understandable that parents are looking to place their child into the best possible school, so this creates a heightened level of demand for homes in this area. Basic economics tell you that if supply stays the same but demand rises, you are going to experience a rise in prices.in recent times, there is a feeling that as more families are reviewing their budget, it makes more sense to pay more for a home in the catchment area of a well-received school than to hold a home and pay high fees to allow children to attend private schools.
Add in the fact that there is a perceived tendency for leading further educational bodies to have a preference for candidates that come from state schools, and you can see why there is a greater level of demand for properties that will allow children to attend certain schools.
London behaves like the rest of the country with respect to catchment area impact
An interesting aspect about this behaviour is that it is one that is seen across the whole of the UK. You often find that the London property market stands apart from the rest of the country but when it comes to the impact that school catchment areas have on property prices, the London market behaves in the same way. Some examples of this include:
The Holland Park School catchment area in London has an average property price that is 79% higher than similar homes in the same postcode region. The catchment area for the Altrincham Girls Grammar School, located in Cheshire, is 223% higher than homes in the surrounding area.
This is seen across the country: Holland Park School in London attracting parents willing to pay a house price premium of 79% compared to similar properties in the same postcode; Altrincham Girls Grammar School in Cheshire pushes up house prices in its catchment area by as much as 223%; houses in the catchment area of Tudor Grange school in Solihull, are 94% more expensive than similar homes in neighbouring areas.
There is also evidence to suggest that good primary schools are in such demand that the catchment area for these schools can hold an average price that is 40% higher than surrounding areas. Anyone looking to buy a home that will place their child into these schools will find that paying a higher price can be justified by gaining access to the school but anyone who currently owns property in these areas and isn’t concerned about schooling may find that they have an opportunity to make a great return on their home.