‘Outstanding’ Ofsted schools add £20,000 to average house prices

Published 24th Nov 2009

Primary schools that perform well add almost £20,000 to the value of homes in their catchment areas, according to new research.

Nationwide Building Society has released figures showing that schools where every 11-year-old achieves at least a level 4 in their Sats exam boost house prices in the area by 11 per cent, adding £19,500 to the price of the average home.

The study found that a 10 per cent increase in the number of pupils achieving a level 4 grade adds £8,000 to the average house price in London. In Yorkshire and Humberside, prices are boosted by 4.6 per cent, adding an average of £5,190 to house prices. Parents keen to get the best possible education for their children have been known to pay thousands of pounds more for homes within the catchment area of schools rated as “outstanding” by Ofsted, the schools inspector.

Homeowners living within the catchment area of popular primary and secondary schools do not only benefit from a rise in house prices. Estate agents have said that the presence of good schools has protected many such areas from the housing market slump.

Lucian Cook, head of research at Savills, said: “The influence of well-performing schools on house prices has actually increased over the last two years. It remains a significant driver for house sales and continues to be relevant for buyers even in a downturn.

The Nationwide Building Society has produced a monthly house price index since 1991. Economists at Nationwide isolated the impact of school performance on house prices by stripping out the effect of other characteristics, such as a property’s size, its specific location, decoration, fittings and other variables.

Data from school performance tables published by the Department for Children, Schools and Families was then used to establish the link between house price and schooling.

The study concluded that across England, a 10 per cent rise in the number of 11-year-olds achieving level 4 in the sats exams added 3.3 per cent to the value of homes in the area, or an average of £6,000.

Martin Gahbauer, chief economist at Nationwide, said: “Primary school catchment areas tend to be relatively small and are driven by proximity to the school.”

One area in southwest London has become known as “nappy valley” by locals after an invasion of young families drawn to Belleville Primary School and Honeywell Junior School, graded “outstanding” by Ofsted.

Homes “between the commons” of Wandsworth and Clapham command tens of thousands of pounds more than similar properties nearby.

Source: ' Times '

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