Homes near top schools command high premiums

Homes near London’s top 10 state primary schools command an average £200,000 premium, according to research published today.
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The average price of property within half a mile of the highest-rated schools — where children are likely, though still not guaranteed, to get a place - is £972,000. Properties just beyond the half-mile boundary, where children are unlikely to qualify, sell for an average £802,000.

“Property within the catchment area of the capital’s best schools has long been a sought after commodity," says Marc Goldberg, of Hamptons International, which conducted the research. “While at first glance a £200,000 premium appears costly, for many London families in the longer term, this can be a more cost-effective option than paying expensive school fees: properties within these catchment areas will always be in demand and homeowners can be confident they will see their money returned when they eventually come to sell.”

New research compared a cross section of sales made between 2009 and 2011 within the half a mile zone with a sample of sales in the wider area. The average price difference between the two groups was £202,700 or 21 per cent.

However the presence of the schools is not the only reason for price differentials. Homes within half a mile of Hampstead Parochial Church of England Primary School are a full £653,029 more expensive, at £2.49m, than those further away.

But this dramatic “premium” is in part because the school is in the heart of Hampstead village, one of the most expensive areas of real estate in London.

Homes close to Newton Farm, in Harrow, the capital’s top primary school, are in fact almost £6,000 cheaper than those in the nearby Harrow-on-the-Hill but that is simply because Harrow-on-the-Hill is in the very up market historic village where a big premium applies. The clear underlying trend is for prices to be hiked the closer a property is to the school gates as parents scramble to buy their way into top schools.

A recent study by Nationwide Building Society found primary schools with good SATS results would add around £20,000 to nearby homes.

School Area Price up to ½ mile Price between ½ mile and one mile Cash difference Percentage difference
Hampden Gurney C of E Primary W1 £2,033,046 £1,754,426 £278,620 16%
Hampstead Parochial C of E Primary NW3 £2,489,379 £1,836,349 £653,029 36%
Hampstead Parochial C of E Primary NW3 £2,489,379 £1,836,349 £653,029 36%
Newton Farm HA2 £283,127 £288,867 -£5,741 -2%
Rhodes Avenue Primary N22 £446,384 £340,445 £105,939 31%
Scotts Primary RM12 £179,998 £226,439 -£ 46,441 -21%
St Joseph’s RC Primary W9 £1,444,469 £1,163,429 £281,040 24%
St Mary’s Catholic Primary E4 £393,322 £314,511 £78,811 25%
St Mary’s Church of England Primary SW15 £724,226 £745,385 -£21,159 -3%
The Cathedral of St Saviour and St Mary Overy SE1 £768,001 £608,317 £159,684 26%
The Queen’s Church of England Primary TW9 £955,178 £746,249 £208,929 28%

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