Figures show that in England, properties in the catchment area of a school that achieves a pass rate 10% above the national average will command a 2.55% premium – adding up to a £4,270 premium on the average UK property value of £167,407.
It is commonly accepted that a factor influencing property purchase is the quality of the local primary school. To produce the report, Nationwide used the Department for Education & Skills’ figures for pass rates at the Key Stage 2 level and compared them with their own property value figures.
Regionally, residents in the Yorkshire and Humberside area are willing to pay the highest premium to live in the catchment of a ‘better’ school. Here the location of a house in the catchment area of a school that achieves a pass rate 10% above the national average can add a premium of 4.82% or £6,945 to the value of the average property
Interestingly, the influence of school performance across regions does not follow a North-South divide – the premium paid in the Outer South East, for example, is similar to the premium in the West Midlands, and well above the one paid in London.
Alex Bannister, Nationwide’s Group Economist, said: ‘Traditionally, primary schooling is viewed as crucial in providing children with the basic building blocks of learning, and thus parents put a great deal of effort into researching the performance of local schools. Since catchments are relatively small and most parents want to limit the time that their children spend travelling to school, it would seem logical that properties close to a ‘good’ school command a premium.’