New research from Santander has found there’s a 42% house price premium to live in the catchment area for England’s top secondary schools, compared to surrounding areas. But it’s not only the outstanding secondary schools that attracts parents. Buying a property within the catchment area of the top 1,000 primary schools also carries an 8% house price premium.
The research from Santander Mortgages indicates that across the UK, parents are willing to pay premiums for homes in catchment areas for schools in order to secure their children a place.
Families with children of school age are paying over £25,000 more than the UK average for a property, in an attempt to make sure they will be able to gain a space at a top school of their choice. The catchment area of outstanding schools is now one of the main attractions when relocating and is as important as living in a low-crime area or close to good transport links.
The premiums relate to the proximity to high-performing schools. In London for example, that’s just over £70,000 and parents are happy to pay 15% more than anywhere else in the UK, in order to live near their first choice for school. In second place is the South East with families willing to pay an extra £40,000 to relocate to an area with a high performing school.
The managing director of Mortgages at Santander states that, “Living in the vicinity of a top-ranked school carries a significant house price premium. If families are looking to move into a catchment area specifically to boost their chances of getting into an elite school, they can expect to pay a hefty price. It is important when considering purchasing a property that people understand the true costs as the house price is just one of many. Stamp duty, solicitors’ fees and moving costs mount up. Parents are prepared to sacrifice a lot to give their child the best start in life and given these costs, it is important to find a mortgage lender that offers the best rate for you to ensure repayments are manageable, and the buying process is made as smooth as possible.”
Other findings from the research uncovered that over 20% of the parents interviewed, admitted they bought a house in an area with good schools in which they are a little financially overstretched. Meanwhile, 30% of families with children between the ages of 4 and 18 are considering the same move in the next two years. On the other hand, 25% of the parents surveyed said they would buy a house in a less expensive location and send their children to a private school.
The sacrifices some of these parents have made in order to send their children to their preferred school include downsizing, taking extra hours at work or increasing their commuting distance to work.
If you are looking to relocate to the Altrincham or surrounding areas, with its many excellent schools, then contact the team at Jameson and Partners for help with your move.