Property prices soar near top state schools
Sunday 18 September 2016
New figures showing how house buyers are prepared to pay more to live near a top-rated state school offer the canny landlord great opportunities - providing they do their homework.
According to research from Lloyds Bank, parents pay an average of £53,000 extra in academically excellent areas - up by 31 per cent, or £13,000, on last year.
Property prices in postal districts where schools achieved the strongest GCSE results have soared to an average of £366,744.
The research shows that average house prices in areas with a state school in the top 30 of exam results have soared by £76,000 since 2011.
Parents who secured a place for their child at one of these schools have seen prices rise from £290,683 to £366,744, over the last five years - an astonishing increase of 26 per cent.
This outpaces average house price rises in England as a whole, which have increased from £240,208 to £282,353 – an increase of £42,145 or 18 per cent.
Andrew Mason, Lloyds Bank mortgage products director, said seven of the areas covered in the bank's survey have seen house prices rise by over £100,000 since 2011.
He warned that the 'popularity of areas close to high performing schools' had priced out buyers on average earnings.
In NW11, the postal district of The Henrietta Barnett School in Barnet, the average house price has rocketed by £234,386 in the past five years – the largest rise in cash terms – to £1,011,016.
And at least 50 per cent of top 30 areas have seen average house prices rise by a minimum of £50,000 since 2011.
Landlords who own properties there should seriously consider charging a premium on rents, and prospective BTL investors could do worse than checking academic league tables when researching their next buy.
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