All parents know that providing their children with a good education is a top priority and it is often one of the top considerations for families when they are looking for a place to live.
Although there may be premiums attached to some of the neighbourhoods nearby the top schools across the country, there are still a variety of neighbourhoods that are under the country average. In particular, outside of London and to the South East where many of the properties remain more affordable when compared to the average earnings according to research from Lloyds Bank.
Top performing state schools has affected the house price growth in the last five years since it has significantly outperformed the rest of the country. For example, the house prices for properties near top state schools have increased by 35% (£104,365), compared to the English average house prices of 20% (£49,082) over the last five years. While in the present, the average house price in areas near the top state schools is now £400,850, compared to the average of £293,824, which is a huge difference of £107,026.
Average house prices have increased by a least £80k in the last 5 years just by having two thirds (21) of the top performing state schools near the properties. Half of them (10) are in Greater London. In the postal districts of the top 30 schools, the house prices are on average of £30,960 (8%) higher than other areas in the same county (or local authority of London). The ranked school (ranked 29th) Beaconsfield High School in Buckinghamshire has the highest premium (149%) with homes being worth £1million compared to the county average estimated around £600k. This premium is doubled when compared to Cheshire, home to Altrincham Grammar School for Girls (ranked 10th) and Loreto Grammar School (ranked 20th) which is the next biggest house premium, if compared to the country average (£434,756 compared to £249,829 or 74%).
There are 11 schools that are priced under the English average out of the top 30 schools. Properties that are near to the High School for Girls in Gloucestershire (ranked 19th) are £129,982 (44%) below the county average. This is followed by King Edward VI Handsworth School in the West Midlands (ranked 6th) at £86,953 (42%) lower than the county average. This indicates that the most affordable homes are near King Edward VI Handsworth School in the West Midlands as the house prices are just 3.7 times average local earning.
In the postal areas of the top 30 schools, the average house price is almost 19 times (9.9) the average local earning – compared to 7.9 across England. Properties close to the best performing state school in the country, the Henrietta Barnett School in Barnett, are the least affordable with 22.2 times gross average annual earnings in the area.
About the Author
Stuart Mosley (CeFA, CeMap, CLTM) founded SJ Financial Solutions in June 2005 having spent 12 years with big corporates such as Halifax and Santander. He felt the personal touch and straight speaking was missing from financial and mortgage advice services and set up SJ Financial Solutions to change this.
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