This is according to new analysis from prime property website PrimeLocation.com which looked at asking prices in the vicinity of the top 100 state primary schools across England, compiled from a Department for Education league table.
The study reveals that homes in these areas command an average price of £309,732 – £91,618 (42%) higher than the UK average of £218,114.
PrimeLocation.com’s analysis also reveals that rental prices in these areas are 9% higher than the national average, with landlords benefiting from parents keen to rent a property within their desired catchment area without having to relocate completely.
Primary schools in the East Midlands yield the biggest premiums on homes, with asking prices £82,000 (48%) higher than the regional average of £171,135. Properties near Orchard Church of England Primary School in Broughton Astley, Leicestershire – the top ranked school by educational performance in the region – have prices 11% (£18,000) higher than the regional average, while homes near the neighbouring Curbar and Grindleford primary schools in Hope Valley, Derbyshire, command average prices of £442,692 – £271,557 (159%) higher than the East Midlands average.
Yorkshire’s top primary school areas are close behind with average prices £75,000 (47.4%) higher than the rest of the region. Demand for properties near St Mary's Church of England Voluntary Controlled Primary School, the tenth highest-ranked primary school in the country, has led prices to rise to £275,642 – 75% higher than the average in the region.
Asking prices in areas close to top ranked primary schools in London, where property costs more than the UK average, attracted the smallest premiums, with prices 7.4% higher.
Commenting, Nigel Lewis, property analyst at PrimeLocation.com, said: “It’s no surprise that parents are investing considerable amounts of money choosing a home that gives their child access to the best school possible.
“This demand has led to higher than average asking prices for homes in the most sought-after neighbourhoods, pricing many parents out of the area altogether.
“While asking prices in the capital are on average higher than the rest of the UK, it has the lowest primary school premium in the country. This could be because external influences on house prices here are much stronger and high population density means there’s more competition for homes in London, even without the lure of living near a top primary school.”
The research also found that living near a top primary school adds more to the value of a property than living near one of the UK’s top-performing secondary schools.
Analysis conducted by PrimeLocation.com in September 2011 revealed that living near one of the fifty best secondary schools in the UK adds an extra £77,000 to the value of a home - £14,000 less than living near one of the nation’s top primary schools.
Lewis concluded: “The primary school a child goes to can have a significant impact on their subsequent education and with competition for places in the UK’s top secondary schools becoming more intense parents are going to greater lengths to ensure that their child is not left behind.
“This has led to greater demand for homes close to the country’s top primary schools.”
