Invest in property near good schools for strong premiums – new data

Invest in property near good schools for strong premiums – new data


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Richmond Park has been named as the best place to live for access to high performing state primary and secondary schools, according to latest analysis from property firms Savills. 

Savills research analysed parliamentary constituencies across England to rank locations by how well students are dong academically, and also by whether an area is more likely to have access to high-performing schools, without the risk of securing a place at lower-performing ones*.

House price premium for good schools

The research reveals that by these measures over two thirds (68%) of parliamentary constituencies in the top 20% are located in London and the South East. 

On this basis alone, access to high-quality state education often comes with a house price premium. But even after adjusting for regional differences in house prices, homes in the top 10% of areas for school performance still command a significant premium, of +28%, according to Savills

Average House PriceV Regional Average
Top 10%695,018+28%
10% to 20%484,811+13%
20% to 30%423,640+15%
30% to 40%349,904+1%
40% to 50%335,027+1%
50% to 60%307,873-3%
60% to 70%255,955-12%
70% to 80%284,446-7%
80% to 90%261,639-12%
Bottom 10%240,485-22%
Grand Total363,916n/a

“There is a well-established link between house prices and access to high-performing schools. Families often judge the desirability of an area by the reputation of its schools, based on a on a long-term perception of track record, and are willing to pay more to live in the associated catchment areas,” comments Lucian Cook, head of residential research at Savills.

“This is likely to become more pronounced with the rise of private school fees. Although we haven’t seen a mass exodus from the private sector, there is likely to be a steady rise in families looking to access the best state schools over time, putting further pressure on surrounding home values.” 

Richmond Park tops the table for both primary and secondary schooling, although house prices here carry a significant premium at an average £1,016,265 (51% more than the regional average). While the highest performer outside of the Capital for both primary and secondary schools (Altrincham and Sale West) has an average house price well over twice the average for the North West (121% more). 

More generally, locations in London dominate the list of the highest performers, (eight out of the top 10 locations).  But these almost universally come with a high house price.  Even in Sutton and Cheam, one of the more affordable London locations for good schooling, the average house price sits above £500,000.

“For that reason many families will look further afield, to other regional hotspots where prices are high relative to their regional average but low relative to London” continues Cook. “For that reason, locations including Rushcliffe, Sutton Coldfield, Bournemouth East And Sheffield Hallam score strongly.”

The research also identified that strong performance at Key stage 2 does guarantee strong performance at Key Stage 4.

“While there is some overlap, it’s perhaps surprising that the correlation between area rankings for primary (KS2) and secondary (KS4) school performance isn’t stronger.  For many buyers, , especially those looking for a long-term or “forever” home, the focus will be on areas offering stronger outcomes at KS4 and beyond,” concludes Lucian Cook. 

Savills analysis looked at the average Key Stage 2 and Key Stage 4 (GCSE-level) results from the Department for Education (DfE), for all students living in each constituency, which provides a general picture of how well students are doing academically in each area.

Secondly, Savills looked at the proportion of primary or secondary schools in each area that rank in the top 20% nationally, and subtracted the proportion in the bottom 20%. This indicates whether a local area is more likely to have access to high-performing schools, without the risk of securing a place at a lower-performing one.

 Key Stage 2Key Stage 4
% KS2 at Expected% KS2 at HighKS2 top – bottom 20%KS4 AttainmentKS4 top – bottom 20%
Top 10%72%13.4%+34%55+52%
10% to 20%68%11.1%+20%52+31%
20% to 30%65%9.4%+11%49+16%
30% to 40%63%8.0%+3%48+7%
40% to 50%63%7.8%+1%47-3%
50% to 60%61%7.3%-8%46-7%
60% to 70%60%6.5%-7%45-16%
70% to 80%58%6.0%-14%44-20%
80% to 90%57%5.3%-18%42-32%
Bottom 10%54%4.5%-28%40-52%

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