£34,000 extra to live near top schools
It is estimated that homes close to top schools cost nine times the average earnings, with house prices in the postal districts of the top 30 state schools in England – defined as those secondary schools that achieved the best GCSE results1 in 2011 – were on average 12% higher than the neighbouring locations in their county.
The house price premium associated with living close to the country’s top state schools £33,631 is almost three times the average annual private school fee of £11,422, with the North West with the largest price premium in postal districts of the top ten state schools.
Suren Thiru, housing economist at Lloyds TSB, said: “The presence of a good school appears to help support property values in many of these locations as parents compete with other buyers and investors to land the property that gives their child the best possible chance to attend their chosen school.
“The downside of high property values in many of these areas is that it can create a financial barrier to attending the best non-fee paying schools, with many lower and middle income families finding it very difficult to purchase a home in these locations.”
Overall, the typical price of a home in the postal districts of England’s best state schools is £303,902. This is almost a third higher than the average house price across England of £236,321.
The average house price of £303,902 in the postal districts of the 30 best performing state schools is almost nine times the average gross annual earnings.
This is significantly higher than the average across England of nearly 7 times the average gross annual earnings.