Properties near ‘outstanding’ primary schools cost 11% more on average

Properties close to primary schools rated ‘outstanding’ sell for an average of 11% more than homes located further away, new analysis shows.

With pupils returning to schools this week for the new academic term, the value of education and the premiums families are willing to pay to secure access to top-rated primary schools are back in focus, after a year of disruption due to the pandemic.

The analysis, which compared the sale price for properties within 1km of primary schools rated outstanding by Ofsted and the local authority average, reveals the North East has the biggest premium this year at 18%.

The East Midlands, which topped the list last year, has an average premium of 17% and is second in the list, while the South West and Yorkshire and the Humber were tied in joint third with 15%.

Outstanding-Rated Primary Schools Comparison

Tom Bill, Head of UK Residential Research, said: “Good schools are one of the most obvious drivers of house price growth and the pandemic has done nothing to change that.

“While many buyers have been seeking extra space over the last 18 months, there has been a growing focus on balancing this with proximity to amenities. For many younger families, a good primary school will be top of the list of requirements.”

In the more densely populated area of London, where a 400-metre radius was used, a higher number of ‘outstanding’ schools and more numerous demand drivers, including access to work and amenities, affect house prices. As a result, borough-wide prices can be more homogeneous and a premium of 2% was recorded.

While space and greenery remain a key driver for buyers following the pandemic, amenities and services are of increasing importance.

Knight Frank’s sentiment survey from June found proximity to pubs, restaurants, theatres and entertainment had gained in popularity.

Proximity to such venues was more important for 31% of people compared to before the pandemic. That compared to an increase of 18% at the start of this year.

Note: Premiums were calculated by comparing average property prices within 1km of primary schools that are rated outstanding by Ofsted against the local authority average. In London the radius was 400 metres to reflect the increased population density of the area

Source: Knight Frank/Land Registry

Image by Juraj Varga from Pixabay