The £27K property price premium to be in a top school catchment area
Living in the catchment area of one of England’s top 100 state secondary schools carries a massive 42% house price premium compared to the surrounding area, according to Santander. Even the best primary schools boost house prices in the catchment area, by an average 8%.
The lender found that parents with school age children who have moved or are willing to move to live in their preferred catchment area are prepared to pay £26,860 more than the average UK property price in a bid to secure a space at a top school.
Miguel Sard, managing director of mortgages at Santander UK said: “Living in the vicinity of a top ranked school carries a significant house price premium. If families are looking to move into a catchment area specifically to boost their chances of getting into an elite school, they can expect to pay a hefty price.
“Parents are prepared to sacrifice a lot to give their child the best start in life and given these costs, it is important to find a mortgage lender that offers the best rate for you to ensure repayments are manageable, and the buying process is made as smooth as possible.”
Stretching for schools
The cost of securing a property in the right catchment area has seen almost a quarter of parents pay significantly more for a property than they felt they could afford. Three in 10 parents with children aged four to 18 are currently considering moving in the next two years to ensure they are in their preferred school catchment area.
Parents who ensured they were in the ‘right’ school catchment area have had to sacrifice as a result. One in five had to downsize their home, while 24% have taken on extra hours at work and a further quarter saw their commuting costs increase. One in six families even admitted moving to an area they didn’t like.
The catchment area premium in London stands at an eye-watering £70,675, as parents willing to move would be prepared to pay 15% more to live in the vicinity of their first-choice school, more than anywhere else in the UK. The South East ranks second, with parents prepared to pay an additional £40,294 to live in the catchment area of their preferred school.