Parents are paying an average premium of more than £40,000 for homes in areas containing some of the country’s highest-rated state secondary schools, but the postcode premium does not necessarily guarantee admission.
Analysis by Yopa found properties in postcode districts containing one of the UK’s top 50 state secondary schools averaged £415,791, compared with £375,217 across their wider local authorities.
That represents an average difference of £40,574, although the research does not establish that proximity to a school is responsible for the entire premium.
Housing type, neighbourhood characteristics and other local factors can all influence values, while being located in the same postcode district as a school does not necessarily mean a child will qualify for a place.
SCHOOL PREMIUMS VARY
The largest difference identified was around Bishop Vesey’s Grammar School in the B74 postcode, where homes averaged £509,964 – £275,814 above the wider Birmingham average.
Properties in NW11, which contains The Henrietta Barnett School, averaged £354,288 more than Barnet as a whole.
However, the relationship was not universal. Homes in the postcode district containing Reading School and Kendrick School averaged £276,870, around £84,000 below the wider Reading average.
Cal Graham (main picture, inset), Property Expert at We Buy Any Home, says buyers should therefore examine comparable sold prices rather than assuming the presence of a highly regarded school explains differences in property values.
POSTCODE DOES NOT GUARANTEE ADMISSION
Graham says: “A sought-after school can become one of the most valuable ‘features’ attached to a property, despite having nothing to do with the bricks and mortar.
“Parents are not simply buying another bedroom or a larger garden. They may be paying for the perceived opportunity the address gives their child, which makes competition particularly emotional.
“The biggest mistake is seeing a school mentioned in a property listing and assuming the address guarantees admission. Being in the same postcode, living nearby and falling within a school’s effective admissions area can mean very different things.
ADMISSIONS POLICY
And she adds: “Ask the relevant school or local authority for its current admissions policy and previous distance data. Check the precise address rather than relying on an estate agent’s description or a property portal map.
“Parents should also establish whether the admissions rules are due to change. A boundary can tighten, a new school can open or demand can increase before their child is old enough to apply.”
Graham adds that buyers considering paying a school-related premium should also factor in additional mortgage interest and transaction costs and ensure the property and wider neighbourhood meet their needs regardless of whether their child ultimately secures a place.
