Do school catchment areas increase property value?

Do school catchment areas increase property value?

Do school catchment areas increase property value?  Yes!  A recent survey has revealed being situated in the catchment area for one of England’s top 100 state secondary schools can add a hefty 42% price premium to the value of property  The price uplift for well regarded primary schools is much less at around 8%.

Catchment is everything

Research carried out by Santander Mortgages shows that parents (and perhaps even would be parents!) are prepared to pay on average an additional £26k to buy a property in the catchment area of a top performing school over one which is in a neighbouring area, out of catchment.

Parents are prepared to pay a higher premium for school catchment areas than any other amenity, including a low crime rate (11% premium) and good transport links (10% premium).

Downsize or work more?

As well as collaring the additional cost of property in areas where there is a high performing state secondary school, it seems there are other other sacrifices parents are prepared to make on moving to a new area for schools, including;

  • 20% downsizing to be able to afford a property.
  • 23% paying more than they felt they could afford
  • 24% taking on extra hours at work
  • 25% increasing their commuting costs
  • 17% making their journey to work more difficult.

Location, Location, Location

The premiums are of course highest in the London area, in line with the cost of property generally.  Here in our patch in Devon, Seddons have a few offices in areas with highly performing schools.  Seddons Tiverton and Seddons Cullompton offices both cover locations included in the catchment area for the highly regarded Uffculme School (which in 2017 was in the top 100 state secondary schools in the country).  Whilst Seddons Honiton office covers locations included in the catchment areas for The Kings School at Ottery St Mary and Colyton Grammar School.  We certainly see these properties benefit from increased interest and with high performing schools generally oversubscribed, that increased demand is set to continue as location is a deciding factor for school admissions when all else is equal.

Good news for some…

This is good news for anyone thinking of selling in these school catchment areas.  If you are looking to buy in these areas, you can take comfort in the fact that, whilst you may be paying a premium now, you are likely to see the benefit of continued high demand for property in the area which will be great news when you come to sell!

For information and advice about selling a property and how our expert marketing will help to make the most of your property’s location, get in touch with your local office.  If you are just curious about the value of your home, you can arrange a free no obligation valuation with us – if your property is in the right area you may be pleasantly surprised!