The average price of £366,744 for properties closest to the UK’s top thirty schools is £53,426 more than the average for the country.
New research from Lloyds bank shows parents are willing to pay 17% more than the average price for a property to ensure their children are near to a top thirty performing state school.
Average price for homes near schools with the strongest GCSE results in 2015 is £366,744 compared to the average for the country of £313,318 making if more difficult for first time buyers or home movers to buy.
This £53,426 difference in house price has increased by about £13,000 compared to the figure last year of approximately £40,000.
State schools in areas including London, Buckinghamshire, Cheshire, Warwickshire, Kent and Lancashire all ranked in the Top ten with three areas recording an increase in house price of over £225,000 since 2011.
Premiums of £150,000 in six areas
For the top six state schools the premium is even greater at £150,000 or more compared to the surrounding areas with the highest prices near to Beaconsfield High School in Buckinghamshire at £996,212 or a premium of £367,191 or 171%.
The average price paid for a home near a top state school and premium paid above the average for the county is as follows:
| State School | Average Price |
Premium Paid |
|---|---|---|
| Beaconsfield High School | £996,212 | £629,021 |
| The Henrietta Barnett School | £1,011,016 | £429,506 |
| Sir William Borlase’s Grammar School | £587,272 | £220,082 |
| The Tiffin Girls’ School | £721,078 | £192,011 |
| Dr Challoner’s High School | £535,498 | £168,308 |
| Altrincham Grammar School for Girls | £380,847 | £151,720 |
| Stratford Girls’ Grammar School | £344,502 | £87,725 |
| King Edward VI School | £344,502 | £87,725 |
| The Skinners’ School | £394,904 | £86,618 |
| Clitheroe Royal Grammar School | £232,694 | £79,455 |
The second highest premium paid is for the Henrietta Barnett School at £429,506 or 71% higher than the average for the borough of Barnet in London.
For Sir William Borlase’s Grammar School in Buckinghamshire the premium was £220,082 or 60% followed by the Tiffin Girls’ School in Kingston upon Thames at £192,011 or 36% more than the county average.
These property premiums may deter new purchases from buy-to-let investors as they would need more capital to buy, pay higher stamp duty tax and charge higher rentals to cover the mortgage interest.
Both the Stratford Girls’ Grammar School and King Edward VI School are in the same area of Warwickshire and have the same figures.
Family members can help second steppers where equity release buyers access wealth using a lifetime mortgage and give to a child or grandchild as an extra deposit to buy their next home.
House prices up over £76,000 in five years
Although the premium for buying a home near the top thirty state schools is an average of £53,426, homebuyers have made a good investment as prices have increased by £76,061 since 2011.
Andrew Mason, Lloyds Bank Mortgage Products Director said the best exam performance from state schools is attracting home movers driving property prices higher.
The analysis shows prices in 2011 for homes near top schools were averaging £290,683 and have increased to £366,744 over five years or up by 26% and makes them unaffordable to most buyers.
This compared to England as a whole with values rising from £240,208 in 2011 to £282,353 in 2016 or higher by £42,145 or only 18%.
Prices rises are even higher in seven of the areas covered with increases of over £100,000 over five years with the highest being the Henrietta Barnett School up £234,386 or 30% with average prices at £1,011,016.
The next highest increase is from the Tiffin Girls’ School where property prices are up by £232,953 or 48% followed by Beaconsfield High School up by £228,829.
If you are a remortgage buyer living in these areas the higher property values gives you an opportunity to release capital to improve your home such as adding an extension, new kitchen or bathroom.
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