Living near good schools can significantly increase property values in the UK. Several studies and market analyses have shown that proximity to high-performing schools is a key factor for many homebuyers, particularly families. Here are some key points on how much value this can add:
- Premium Prices: Properties near top-rated schools, often referred to as being within the “catchment area,” can command premium prices. Studies have found that homes in these areas can be priced up to 20% higher than comparable properties outside these zones.
- Annual Increases: Research indicates that the premium for properties near good schools has been rising over time. In some cases, this increase can be as much as 3-10% annually, reflecting the sustained demand for such locations.
- Comparative Analysis: Nationwide surveys and analyses have consistently shown a marked difference in house prices between areas within the catchment of high-performing schools and those outside. For example, a study by Lloyds Bank found that homes near top state schools can be valued at up to £40,000 more than the regional average.
- Long-Term Investment: Investing in a property near a good school can be seen as a long-term investment. The continuous demand for quality education ensures that these properties remain attractive to buyers, thereby supporting their value over time.
- Impact on Renting: Not only does proximity to good schools boost property sale values, but it also impacts rental prices. Families are often willing to pay higher rents to secure a place near reputable schools, making such properties attractive to buy-to-let investors.
The exact value added can vary depending on the specific school, its Ofsted rating, local market conditions, and regional demand. However, the overall trend indicates a strong positive correlation between good schools and higher property values.
Example Figures
- Lloyds Bank (2017): Homes near top state schools were found to be worth an average of £26,860 more than other properties in the same county.
- Savills (2019): Properties within the catchment area of the top 10% of schools can attract a premium of 12-20% over the local market average.
Conclusion
Living near good schools generally adds significant value to properties in the UK. This premium reflects the high demand for quality education and the desirability of ensuring children can attend reputable institutions. As a result, homes in these areas tend to hold their value well and provide good returns on investment.