As the summer holidays draw to a close and a lot of us are returning to the routine of the school run, many parents may be wishing they lived closer to their child's school. New research from Lloyds Bank, however, has revealed that this dream may cost parents an extra £53,426, especially if they want their offspring to attend a top-30 school.
Top school premiums
Data shows that people living near one of the top 30 state schools in England pay an average of £366,744 for their home, which is 17% above the county average of £313,318. This difference is up by 31% from last year when the top school premium stood at approximately £40,000, and increases even further when looking at six of the top 30 schools which command a house price premium of over £150,000.
The 'prize' for the largest premium goes to properties in the postal district of Beaconsfield High School, with homes worth a whole 171% (or £629,021) more than the county average of £367,191, resulting in house prices near to a million pounds.
Second place goes to the Henrietta Barnett School district, wherein houses come with a premium of £429,506 (74%) compared to the whole of Barnet. In third place is Sir William Borlase's Grammar School in Buckinghamshire (premium of £220,082) and fourth goes to the Tiffin Girls School in Kingston upon Thames (£192,011 premium).
These increases have meant that for some parents it is now impossible to get a house in one of these districts, compared with even a few years ago. In the Henrietta Barnett School area, for example, house prices have grown by £234,386 in the past five years – the highest rise in cash terms – to stand at £1,011,016.
Good news for lucky homeowners
These premiums are of course great news for people already living in these areas. Parents who bought a house near one of the top 30 areas in 2011 have not only been able to send their child to one of the top state schools in England, but also seen their house's worth increase by an average of 26% in the past five years, quite a bit more than the average increase of 18% recorded across England as a whole. Indeed, over half of the areas in the top 30 have seen average house prices grow by at least £50,000 since 2011.
If you're in the enviable position of living in one of the lucky districts, and your children have finished school, you could consider using the boost you'd get from selling at a premium to move into your dream house. Now is also an ideal time to remortgage the house to find a better rate or even to increase the loan size of your mortgage in line with its increased worth to help you pay off debts, conduct renovations or give yourself and your family a well-earned reward.
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
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