House prices near the
best state schools, such as King Edward VI School Handsworth, attract a
premium of more than £30,000, says Lloyds. Photograph: Andrew Fox/Alamy
Parents are paying "premiums" of on average £31,500 for a home in an area with one of the UK's leading state
schools, according to resarch from Lloyds.
The
findings are are likely to reignite the controversy surrounding schools
selecting by parents' ability to afford to live somewhere.
Property
prices within postcodes with the top 30 sought-after secondary state
schools are 12% higher than the average price in the rest of the county,
at an average of £295,972, or almost nine times average annual earnings
for a full-time male employee at £33,740.
Properties close to the top state schools command a housing premium of more than £80,000 in almost a third of cases.
The north-west has the largest premium, with average
house prices
in the postcode of the top 10 state schools in the region trading 28% –
or £43,142 – above the average house price in their county.
This is followed by Yorkshire and the Humber, with a premium of 18%,
and London at 15%. In contrast, house prices in the East Midlands that
are close to the best performing state schools are on average 6% lower
than in neighbouring locations.
The most expensive catchment area
of a state school in Britain is that of the Henrietta Barnett all-girls
grammar school in Barnet, north-west London, where the average house
price trades at a premium of 87% or an average of £402,600.
Homes
within the postal district of Tiffin girls' school and Tiffin school in
Kingston-upon-Thames commanded the second highest premium, with house
prices in the KT2 postcode trading at more than double the average for
the borough at £207,591.
However, more than a third of England's
top 30 state schools are in locations where the average property price
is less than the average of those in neighbouring areas. With an average
price of £94,843, properties in the catchment of King Edward VI
Handsworth school in Birmingham, B21, for instance, are 42% or £67,738
below the county average.
Meanwhile, prices in the surrounding area to
Kendrick school and Reading school were £108,033 lower than the county
average.
The research is based on average asking prices in June 2013 and GCSE results taken from 2012.
Nitesh
Patel, housing economist for Lloyds Bank, said: "All parents want to
ensure their children have access to the best schools, so it is not
surprising that homes in areas close to the top performing state schools
typically command a significant premium over neighbouring areas.
"However,
with the availability of suitable homes in short supply, high demand
has led to average prices in many of these areas being out of reach for
many buyers on average earnings."
Article Source: http://www.theguardian.com/money/2013/oct/27/house-prices-state-schools-higher
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