The looming impact of Labour’s proposed VAT levy on private school fees is beginning to ripple through the UK property market, with growing numbers of parents rushing to secure homes in desirable state school catchment areas.
As the April deadline approaches agents are being warned to prepare for heightened competition in family housing markets, particularly in areas with top-performing state schools.
With many parents ready to act fast – and pay more – to secure their child’s educational future, the property market may see yet another unexpected driver of house price growth this year.
According to Nigel Bishop of buying agency Recoco Property Search, says: “Another wave of parents looking to move closer to state school catchment areas is inevitable.”
SCHOOL STATUS

Bishop adds: “By the end of April, families must confirm with their children’s current private schools whether they intend to re-enrol for the next academic year starting in September.
“Many are opting to switch to state schools instead and are urgently searching for suitable homes as a result.”
Recoco has seen a sharp rise in enquiries from parents eager to move, with some willing to offer above asking price to secure properties within sought-after catchment areas.
“There’s a real sense of urgency,” Bishop says. “We expect the competition for larger family homes to push house prices even higher in the coming months.”
SURGE IN DEMAND
This surge in demand aligns with broader market trends. The latest Zoopla House Price Index highlights that buyers continue to prioritise houses over flats. The gap between house and flat values has now reached a 30-year high, with the average house valued at £319,500 – 67% higher than the average flat, which stands at £191,300.
The shift towards state schooling may also be reinforced by growing confidence among parents about their children’s higher education prospects.
Recent figures from Oxford University show that 67.6% of its UK intake came from state schools in 2023. Meanwhile Cambridge University reported an even higher proportion in 2024, with 72.6% of accepted students coming from state schools.
Despite rising private school fees and looming tax changes, there’s little sign of families looking to relocate overseas for education.
The UK remains the top European destination for higher education, according to the Global Education Report by Global Citizen Solutions.
The report ranks the UK first in Europe for university prestige, post-graduation opportunities, and overall quality of student life.