School house price premium revealed
Top primary schools in London command smaller “premiums” for nearby homes than other regions in England, according to a study. Property website PrimeLocation.com said parents across England face a premium of around £91,000 to buy a house near a top state primary school. The website looked at asking prices in the surrounding areas of the top 100 state primary schools across England, using official education figures.
It found that homes in top primary school areas command an average price of £309,732, which is £91,618 or 42% higher than the typical price of £218,114.
Nigel Lewis, a property analyst at PrimeLocation.com, said: “Analysis conducted by PrimeLocation.com in September 2011 revealed that living near one of the 50 best secondary schools in the UK adds an extra £77,000 to the value of a home – £14,000 less than living near one of the nation’s top primary schools.”
Primary schools in the East Midlands were found to command the biggest premiums in percentage terms, with asking prices £82,000, or 48% higher than the regional average of £171,135.
Homes near the Curbar and Grindleford primary schools in Hope Valley, Derbyshire, command average prices of £442,692, which is £271,557 or 159% higher than the East Midlands average.
However, asking prices in areas close to top-ranked primary schools in London, which is generally seeing stronger house price rises than other regions due to strong overseas buyer interest, attracted the smallest premiums, with prices 7.4% higher.
Mr Lewis said: “While asking prices in the capital are on average higher than the rest of the UK, it has the lowest primary school premium in the country.
“This could be because external influences on house prices here are much stronger and high population density means there’s more competition for homes in London, even without the lure of living near a top primary school.”