If you and your family have ever looked for a new home, there is a good chance you’ve taken a look at the local schools so you can make an informed decision about your purchase.
If you’ve got young children then living in the catchment area of a good school is without a doubt a bonus, but have you ever considered how the top schools impact the price of your home or how much buyers are willing to pay to be near one? New research from Santander Mortgages has sought to answer these questions.
According to their data, homes located in the catchment area of one of England’s top 100 state secondary schools, receive a 42% boost to their value.
This price premium even applies at a primary school level, as homes in the catchment area of a top 1000 state primary school are valued at 8% more than homes in the surrounding areas.
It appears that parents are happy to pay a little extra for a home near a top school, with Santander’s research finding that they would be willing to pay almost £27,000 more than the average price of a home in the UK.
What is more interesting about these statistics, is that top schools rank far above any other local amenity, such as low crime rates or good transport links, as buyers are only willing to pay 11% and 10% for these benefits.
The research also found that 30% of parents with children of school age are considering finding a new home within the next 2 years in order to secure their child a place at a top school and just under 1 in 4 parents would even consider downsizing to send their child to a private school.
Managing Director of Mortgages at Santander UK – Miguel Sard - offered his comments on the results of the research, he said; “Living in the vicinity of a top-ranked school carries a significant house price premium. If families are looking to move into a catchment area specifically to boost their chances of getting into an elite school, they can expect to pay a hefty price
“It is important when considering purchasing a property that people understand the true costs as the house price is just one of many. Stamp duty, solicitors’ fees and moving costs mount up. Parents are prepared to sacrifice a lot to give their child the best start in life and given these costs, it is important to find a mortgage lender that offers the best rate for you to ensure repayments are manageable, and the buying process is made as smooth as possible”