When a school rises up the Ofsted rankings, houses within its catchment area enjoy a price bounce that can earn owners tens of thousands of pounds.
The fact that parents will pay a premium to live close to a school with an established reputation for high standards is well known, but new research reveals the impact improving educational standards can have on property values.
Between 2011 and last year almost one in 10 London state schools moved up from a “good” rating by the government education watchdog to “outstanding”, while almost a third — 30 per cent — rose from a “satisfactory” performance to a “good” one.
GCSE and A Level tables: Results for every London state and independent school
Hamptons International has tracked the prices of homes within 100 metres, or almost 110 yards, of improving schools and found that within five years of an Ofsted upgrade, values increased by an extra 5.2 per cent over and above general market trends.
With an average asking price in London now £624,953 according to the latest data from Rightmove, this means owners living near an improving school could “earn” an extra £32,497.
The impact of improving schools will be greatest for family homes near primary schools, where catchment areas are tighter than for larger secondary schools, so really smart buyers looking for uplift should seek out homes near sink schools where a new headteacher and extra investment have recently arrived.
People living near a school which slips down the Ofsted ratings will lose money on the value of their home. Today’s research shows that prices slip by 2.4 per cent, or almost £15,000, compared to other nearby properties when a school is downgraded.
Living in Hackney: the lowdown
Living in Hackney: the lowdown
1/12 The lowdown
Once one of London’s least-loved boroughs, Hackney is now one of the capital's most sought-after areas to live in. You'll find designer fashion, artisan food markets and plenty of arts and culture in this thriving East End spot.
Hackney Central is on the Overground — one stop from Hackney Downs, for Liverpool Street, and two stops for trains to the City from Canonbury. There's also a good selection of buses into central London.
Hackney possesses a good choice of "outstanding" primary and secondary schools, plus a number of "good" comprehensives.
Wilton Way and the railway arches along Mentmore Terrace are home to a number of bars, cafés and restaurants, but most flock to Broadway Market for its eclectic mix of artisan food and drink.
5/12 A foodie favourite
F. Cooke & Sons' traditional pie, mash and eel shop has been a fixture of Hackney since 1900, having been set up by his great grandfather in nearby Dalston in 1862.
(Pictured: Bob Cooke, a fourth-generation pie and mash man)
Newly-opened Pidgin serves a four-course fixed menu of modern British cuisine which changes every week. alongside an accompanying wine list & guest cocktail.
(Pictured: owner, James Ramsden)
7/12 Broadway Market
Climpson & Sons (the famous coffee roaster and café), The Cat & Mutton pub, and branches of the growing Franco Manca sourdough pizza chain are just some of the delights you'll find along Broadway Market, south of London Fields.
The main shopping street is Mare Street , but off-the-tourist-beaten-track designer outlet stores for some of the country’s top fashion brands, including Anya Hindmarch and Aquascutum, can be found in Chatham Place.
9/12 Mare Street
The pedestrianised section of Mare Street south of Dalston Lane is known locally as The Narrow Way. There are branches of Primark and Marks & Spencer, plus a number of small grocers, bargain stores and fabric shops.
10/12 Bolt Motorcycles
This independent motorcycle shop on Richmond Road specialises in custom motorcycles, artwork & apparel. Proprietor Andrew Almond (pictured) works hard to make the shop a beacon for bikers, with a bag of tools on hand for bikers free-of-charge and a coffee shop out front.
11/12 Leisure and the arts
The beautiful Frank Matcham-designed Hackney Empire theatre is the jewel in Hackney’s crown, with a varied programme of comedy, opera, musicals, plays and community events.
12/12 Open spaces
London Fields is the area’s green lung, and has the added bonus of a heated lido. St John’s Church gardens offer a green oasis in the heart of Hackney and Victoria Park is nearby too.
“London schools have greatly improved in recent years and this has had a knock-on effect on house prices in catchment areas across the capital,” said David Fell, research analyst at Hamptons and author of the report.
“While it tends to take two to three years for an improved rating to feed into prices, the average home near a school on the up increases in value by an extra five per cent over five years compared to the wider market.
“In the first two years after a school receives a higher rating, there’s often a flurry of sales in the areas nearby as awareness of the school’s improving reputation spreads. Longer term, schools with better reputations also increase the staying power of neighbourhoods.”
Rushmore Primary School in Hackney, E5, moved from “satisfactory” to “good” at its last inspection, back in 2012. Candy Foy, sales manager at Atkinson McLeod estate agents, said: “That pocket of Lower Clapton does achieve more than you get a little further north. Everybody wants to be near the school.” Family homes in the streets near Rushmore Primary now cost from about £1 million for a three- to four-bedroom Victorian terrace.