When the survey was last conducted, in August 2003, estate agents suggested buyers were willing to pay a 12 per cent premium. With the exception of London, this percentage figure has fallen to 8 per cent, with the premium for primary schools lower than for secondary schools. Due to rising house prices the actual figure being paid has remained unchanged at £16,000.
The latest figures suggest that the substantial rise in house prices has led to affordability difficulties in the areas close to good schools which in turn is putting a lid on prices in these sought after locations.
Jeremy Leaf, RICS spokesperson, said: “A secondary school with a good reputation can cause mayhem in a local property market. Buyers with children of school age will do and pay anything to get their children a place. However, our latest figures suggest some people are simply being priced out of the market in these key locations.
“It is quite normal for potential buyers to check the local Ofsted reports before they read the particulars for their preferred properties. The education effect on property prices can extend well beyond the school run boundaries.”
Some estate agents, responding to the questionnaire raised the point that properties more suited to non-family purchasers can actually suffer because of their close proximity to a secondary school where the heavy traffic caused by school runs and children loitering around the premises out of school hours can be unappealing.
Facts and figures:
* People are willing to spend more renting a property if it is in a good school catchment area.
* Catchment areas are liable to expand or shrink according to the schools popularity. If buyers pay a premium to live within the catchment area of a school when they sell their property it may not command a similar or greater premium.
* The average house price is £198, 552.
* Sending your child to a private preparatory school costs in between £1750 to £3500 per term (day student), and £3400 to £5250 for a boarder per term.
* Private senior schooling costs are even higher - for day students in between £2400 to £3600 (girls), and £2500 to £4500 (boys) per term. For boarding school it’s £4050 to £6800 (girls) and £4400 to £7200 (boys) per term.
* The cost of education at an Independent school in the UK varies from school to school and is at the discretion of the institution; there are no national standards. You should expect to pay a minimum of £8,000 per year and fees can be as high as £25,000.
