The power of school district postcodes on a sleepy English town
In the sleepy market town of Sherborne, Dorset, an educational phenomenon is at play, creating a unique housing sector bubble – even as the majority of local private school attendees live elsewhere. This anomaly largely stems from the proximity to renowned schools such as Sherborne School for Boys and Sherborne Girls School, both of which carry an illustrious reputation that reaches well beyond the local area – and are sucking in the parental market.
Speaking to Mortgage Introducer, Jo Kemp (pictured), a Sherborne real estate expert, said there’s a disparity at play between the illustrious schools and the not-so-illustrious areas.
“Sherborne itself is a bubble because we've got Yeovil, which has been voted the worst town in the UK, literally five miles down the road – and the house prices are a quarter of those in Sherborne. In Sherborne, as a town, even if you're looking at a two-bed ex-council house, [it’s around] £250,000 to £300,000. Whereas you go into Yeovil, you could pick one up for £120,000."
Church Lane, Sherborne - https://commons.wikimedia.org/wiki/File:Church_Lane_Sherborne_-_geograph.org.uk_-_1325547.jpg
And, setting aside the prestigious private schools, The Gryphon School is a much-sought-after comprehensive with a very strict catchment area.
“Sherborne is in a unique position because just a mile to the left, the area is classified as Somerset, but we're in Dorset,” Kemp said. “Having the DT postcode instead of the BA postcode impacts the catchment area for The Gryphon School, which is DT. Around the time people are trying to get into the school, I've even received letters through my door asking if I want to sell my house."
The situation is further exacerbated during key periods such as school admissions season.
“You've got to have that postcode in the October time. So people are probably trying six months before to get in," Kemp said.
While the situation in Sherborne is somewhat unusual, it’s not wholly unique. According to data from GOV.UK, homes located near the top 10% of primary schools in England are priced, on average, 8% higher than those in surrounding areas. For secondary schools, this premium is approximately 6.8%. What’s more, in London, the financial impact is more pronounced, according to research from Strutt & Parker, with properties near the top 10% of primary schools commanding an average premium of £38,800 compared to homes in the wider area.
Sherborne Castle - https://commons.wikimedia.org/wiki/File:Sherborne_Castle_03.jpg
In Sherborne, despite the local housing market pressures, new developments and social housing projects attempt to mitigate the impact.
“They’ve built a very large housing estate, which obviously then you have to have that percentage of social housing,” Kemp said. “But then you look at the prices of these tiny little new builds, and they're ridiculous, and you go a mile down the road to Milborne Port, and you can buy a really nice semi for the same price of a small two-bedroom new build."
As for mortgage advice for families eager to move to Sherborne for better access to its schools, Kemp advises caution and thorough planning.
"I'm always wary if they tell me they're moving to the town that we look and make sure we're in the catchment from where we're looking," she said, highlighting the importance of geographical precision in property selection to align with school catchment areas.
The dynamics of supply and demand are intensified by the town's unique real estate situation. Homes hit the market and are snapped up instantly, often resulting in bidding wars that drive prices well above asking.
“A house will go on the market and it’s gone – you've got to have your alerts set up on Rightmove," Kemp said. The town's historical ties further complicate matters, with many properties still bound by covenants dating back to when they were owned by the castle, restricting modifications and who can purchase them, requiring buyers to work or live locally, and preventing new buyers from outside areas.
And, as Kemp points out the unusual method of sale that's becoming common: "A lot of people are now doing internet auctions, a bit like eBay, where you put in your highest bid over a week.”
