£300k to buy a house near top state schools
Average property prices in the postal districts of the top 30 state schools in England – defined as those secondary schools that achieved the best GCSE results in 2012 – were on average £31,490 (12%) higher than the neighbouring locations in their county (£264,482).
Nine of the 30 top state schools are in locations that command a house price premium of over £80,000 compared to their surrounding locations.
Homes in the postal district of the Henrietta Barnett School in North London have the largest premium with homes trading at a premium of 87% (£402,600) to the average house price in neighbouring areas.
Homes within the postal district of Tiffin Girls’ School and Tiffin (Boys’) School in Kingston-upon-Thames command the second highest premium with house prices in the postal district of KT2 at a premium of 51% (£207,591) to the average for the borough.
However more than a third of England’s top 30 state schools – 12 in total – are in locations where the average property price is below the average of those in neighbouring areas. With an average price of £94,843, properties in the postal district of King Edward VI Handsworth School in Birmingham (B21) are 42% (or £67,738) below the county average.
In cash terms, the largest discount can be found in the area close to both Kendrick School and Reading School where the average house price in RG1 of £202,721 is £108,033 lower than the county average.
The postal districts of the top performing secondary state schools in six of the nine English regions command a house price premium compared to their county average. The North West has the largest premium with average house prices in the postal districts of the top ten state schools in the region trading 28% (£43,142) above the average house price in their county. This is followed by Yorkshire and the Humber (premium of 18%) and London (15%).
In contrast, homes in the East Midlands that are close to the best performing state schools are, on average, 6% lower than in neighbouring locations. Average property prices are also below those of surrounding areas in the South West (-4%) and the South East (-3%).
Nitesh Patel, Housing Economist, Lloyds Bank said: “All parents want to ensure their children have access to the best schools, so it is not surprising that homes in areas close to the top performing state schools typically command a significant premium over neighbouring areas.
“However, with the availability of suitable homes in short supply, high demand has led to average prices in many of these areas being out of reach for many buyers on average earnings.”