Estate agent comparison site, GetAgent.co.uk, has recently carried out a study which shows that homes close to a school with an outstanding Ofsted rating not only command the highest house prices, but they’ve also seen the highest rate of house price growth since the last school year kicked off.
Co-founder and chief executive officer of GetAgent.co.uk, Colby Short, commented: “The presence of a good school is an incredibly influential factor when it comes to local property market values and so it’s no surprise to see that postcodes home to a higher rated school also command a higher average house price.”
Short concluded: “High demand for housing within the catchment areas of these schools drives up property values as parents scramble to secure a spot for the children. As a result, not only do homes command more, but those close to a top-rated school are also subject to a higher rate of house price growth due to a more competitive property market.”
Back to school
Parents across the nation breathed a sigh of relief as schools finally returned for the new learning year. Yet, when it comes to the value of their home, those living in proximity to a school rated outstanding by Ofsted have even more reason to be cheerful.
The analysis was focused on the current average house price across thousands of postcodes that are home to an Ofsted rated school throughout England.
The report card
Interestingly, the results show that in postcodes where a school has been rated as requiring improvement, the average cost of a home sits at £305,230 having increased by 13% or £35,067 in the last year.
For postcodes where schools were rated good, the average home currently commands £341,238 in the current market, which is 11.8% or £36,008 more than postcodes where schools were rated as requiring improvement. Within these postcodes, house prices have climbed by 13.2% in the last year – an increase of £39,734.
However, postcodes that are home to a school with an outstanding Ofsted rating command the peak price. The current average house price across the postcodes sits at £342,677, having escalated by £40,145 in the last year alone (+13.3%).
That’s a solid 14.5% property price premium (£37,447) when compared to postcodes, where schools were ranked as requiring improvement and a difference of over £5,000 in property price appreciation in just 12 months.