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Top state schools add 8% premium to house prices

Samantha Partington
Written By:
Samantha Partington
Posted:
Updated:
26/08/2014

Parents are paying £21,000 more to buy a home near a top state school in England where prices have now reached an average of £268,000.

Research from Lloyds Bank has shown the top 30 schools which achieved the best GCSE results last year pushed prices up by 8 per cent in their catchment areas.

The largest premium parents were willing to pay for their children’s education was £483,000 to live near Beaconsfield High School in Buckinghamshire.

Compared to the rest of the county, homes were 154 per ent higher than homes in neighouring areas, reaching £797,000.

Marc Page, Lloyds Bank mortgages director, said: “House prices close to the nation’s top performing state schools appear to be commanding a significant premium over properties in surrounding areas.

“There is strong competition for properties in areas where state schools are providing top quality education, often in locations with limited supply, which is supporting prices.”

Five of the 30 top state schools are in locations that command a house price premium of over £115,000 compared to their surrounding locations.

Homes within the postal district of Sir William Borlase’s Grammar School, Buckinghamshire attracted the second highest premium. House prices in the postal district of SL7 were £184,000 (59 per cent) more expensive than the average in the county. 

But not all high achieving state schools pushed up prices in the surrounding area.

With an average price of £134,261, properties in the postal district of Devonport High School for Girls in Devon (PL2) are 38 per cent, or £83,375, below the county average.

The premium prices mean those on average earnings are finding it difficult to purchase a property close to many of the best state schools.

The average house price of £268,098 in the postal districts of the 30 best performing state schools is almost eight times the average gross annual earnings of £35,157. This compared to an average of 7.4 times gross earnings across England.

 


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