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Source: nationwide.co.uk
High performing primary schools add value to property prices across all regions, according to a special report published by Nationwide Building Society.
The report says that a 10% higher Standard Assessment Tests (SATs) attainment equates to a property price premium of 3.3%. The highest premium for better performing schools is in Yorkshire & Humberside.
Commenting on the figures Martin Gahbauer, Nationwide’s Chief Economist, said: “Following recent revelations around the lengths that some parents are prepared to go to get their child a place at a good school, we have revisited our research examining how property prices are influenced by the performance of local schools.
“In deciding on a location for their family, parents can place a great deal of focus on the level of education that the local school can provide for their children when growing up. Primary school catchment areas tend to be relatively small and are driven by proximity to the school. Therefore, one might expect that families would prefer to live near high performing schools and be willing to pay a premium for this.
“Using the Nationwide House Price Index and the Primary School Performance Tables published by the Department for Children, Schools and Families (DCSF), we have assessed how property prices vary in relation to the proportion of 11 year olds achieving Level 4 or above in their Key Stage 2 SATs at the nearest school. Our figures suggest that a 10% increase in the SATs pass rate at the nearest school adds on average 3.3% to the price of a typical house, while in some regions of the country the premium can even exceed 4%.”
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