The premium to live near one of England’s top state schools? That’s £483,031

26th August 2014

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Parents looking to move to the postal district of the Beaconsfield High School in Buckinghamshire face paying a near £500,000 premium compared to the average house price in neighbouring areas.

According to research from Lloyds Bank homes near the sought after school pay an extra £483,031  – or 154%.

The analysis found that average property prices in the postal districts of the top 30 state schools in England – secondary schools that achieved the best GCSE results in 2013 – have now reached £268,098. This is on average £20,955, or 8%, higher than their county averages of £247,143.

The study concluded that five of the 30 top state schools are in locations that command a house price premium of over £115,000 compared to their surrounding locations.

After Beaconsfield High School, homes within the postal district of Sir William Borlase’s Grammar School in Buckinghamshire command the second highest premium with house prices in the postal district of SL7 at a premium of £184,058, or 59%, compared to county average.

However, Lloyds found that half of England’s top 30 state schools are in locations where the average property price is below the average of those in neighbouring areas. With an average price of £134,261, properties in the postal district of Devonport High School for Girls in Devon (PL2) are 38% or £83,375 below the county average.

In cash terms, the largest discount can be found in the area close to Reading School where the average house price in RG1 of £212,994 is £107,979 lower than the Berkshire county average.

The average house price of £268,098 in the postal districts of the 30 best performing state schools is almost eight times average gross annual earnings  -£35,157 – compared to the 7.4 average across England.

Homes within the postal district of the Beaconsfield High School are the least affordable with the typical property price of £796,909 in this part of Buckinghamshire are just over 18 times the gross average annual earnings in the area. Houses in the postal district of the Sir William Borlase’s Grammar School, also in Buckinghamshire, are the second least affordable.

In contrast, properties in the postal district of the Heckmondwike Grammar School in Kirklees – the least expensive in this survey at £99,063.

Marc Page, Lloyds Bank mortgages director said: “House prices close to the nation’s top performing state schools appear to be commanding a significant premium over properties in surrounding areas. There is strong competition for properties in areas where state schools are providing top quality education, often in locations with limited supply, which is supporting prices.

“Although property values can be significantly lower in neighbouring areas, many parents don’t appear to be put off from paying a premium to ensure their child has the best possible chance to attend their chosen school.”

House prices in postal districts of the highest ranked secondary state schools in England 2014 – House prices above county/borough average

School County/Borough Average House Price  2014* (£) Average House Price in County 2014* (£) Premium to County 2014  £ Premium to County 2014  %
Beaconsfield High School Buckinghamshire 796,909 313,878 483,031 154%
Bishop Vesey’s Grammar School West Midlands 299,012 167,355 131,656 79%
Clitheroe Royal Grammar School Lancashire 227,602 140,745 86,857 62%
St Olave’s and St Saviour’s Grammar School Kent 411,940 259,260 152,680 59%
Sir William Borlase’s Grammar School Buckinghamshire 497,936 313,878 184,058 59%
Altrincham Grammar School for Girls Cheshire 325,957 208,518 117,439 56%
Colyton Grammar School Devon 270,945 217,636 53,309 24%
Newport Girls’ High School Shropshire 210,979 187,548 23,432 12%
Wolverhampton Girls’ High School West Midlands 187,550 167,355 20,195 12%
Nonsuch High School for Girls Sutton** 319,597 296,217 23,380 8%
Top thirty State Schools average 268,098 247,143 20,955 8%

Sources: Lloyds, Land Registry and Department for Education

 

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