How do Schools Affect House Prices?
When it comes to moving house, one thing always high on the list of priorities is the quality of schools, the availability of schools, and how close they are.
Another thing factored in because of these questions is the price of houses. It is commonly known that the closer to a good school you live, the more expensive the house will be. Too close though and the value may be significantly cheaper.
Back in 2017, the government carried out their own research and found that house prices around the best 10% of primary schools were 8% higher than in the surrounding area. They also found that houses near to the best 10% of secondary schools were 6.8% higher than in the surrounding area.
Advantages of living near a school
There are several advantages to living near a school and some will influence a decision on whether to buy near one. At present, the property price growth tends to be higher in good catchment areas and properties seem to be able to command a premium price if in a good catchment area.
The reputation of a school will obviously lead it to be much sought after and in some cases, this is what drives people to move. As a result, selling a house can be a speedy process as people looking to move nearer a better school offer more than they would in other areas.
Whilst house prices are generally more expensive when close to a good school, being right next to the school can see things go the other way as prices may be a little cheaper due to the increased noise and traffic.
In addition to the financial benefits, the closer proximity the school allows a healthier route to school as parents and pupils can walk rather than go by car.
Disadvantages of living near a school
As we mentioned above, the increased noise and traffic may deter you from living near a school building. Add to this that there is every chance your driveway may be blocked, or footpaths obstructed during pick up and drop off times.
With some schools housing several hundred children, the amount of litter and loitering can be vastly increased when compared to other suburban areas. This can lead to your neighbourhood not exhibiting the kerb appeal you initially hoped for.
Journeys to school mean that your commute to work may be disrupted, leading to you needing to search out alternate routes that may add significant time and cost to your travels.
One thing to consider is the proximity of your house to the school; if it is next to or opposite, you may also find yourself exposed to prolonged bouts of noise during playtimes, sports days and special events.
House prices and Ofsted ratings
Two years on from the government insight, a further study was completed that showed the average house price in England where the top-rated schools are was £331,605. This is almost £100,000 more than houses near schools marked inadequate by Ofsted. Move forward to 2022 and with the housing market constantly fluctuating a further investigation was carried out to discover just how much a good school correlates to house prices.
Last month it was discovered that a home in the catchment area of a primary school rated outstanding by Ofsted was just over £380,000 which is 49% more than the current national average.
When looking to get children into the very best schools, it was estimated that the premium paid on a house this year was 2% more nearer a school than other properties in the same town.
In London, that premium is even higher at 3%.
How proximity to schools affects house prices
Overall, if you live closer to a school you are likely to pay more for your house, especially if it is rated outstanding by Ofsted. However, some parts of the country are surprisingly cheap when nearer a school. Likewise, there are some areas that see properties sell at much more than the 2-3% premium we referenced earlier.
Take Camden for example – the average house price comes in at just over £900,000, whereas the average price for a house when near the Gospel Oak Primary School comes in at a whopping £1.7m, an 81% difference!
So, whether you are looking to move closer to a school to benefit your children, or away from a school to capitalise on the higher prices, speak to us at SOLD.CO.UK. We are property experts that can help you sell your house online and ensure you get the best value for your house no matter where you live with our free house valuation.