Parents are paying an average premium of £52,000 to live in the catchment area of an "outstanding" primary school, new data shows.
And moving from an area with "good" schools – as judged by Ofsted – to one with "outstanding" schools means paying an average of 12 per cent more – or nearly £37,000 extra – for a property.
In London, housebuyers are paying an average of 13 per cent more – or £80,542 extra – to live near an "outstanding" primary, compared with the price they would pay to buy near a school that "requires improvement".
In percentage terms, the property premium is the highest in the West Midlands, where a house near an "outstanding" school costs an average of 32 per cent more than one near a school that "requires improvement". This means that a house near an "outstanding" school costs an average of £218,903, while one near a primary that "requires improvement" costs an average of £165,984 – a difference of £52,919.
Small catchment areas
Even in the region with the lowest premium – the East Midlands – houses near "outstanding" schools still cost an average of £23,325 more than those near primaries that "require improvement".
The average premium paid by homebuyers was £52,372, or 18 per cent.
The data was compiled by property website Rightmove, using information about school catchment areas provided by FindASchool by 192.com. Some of the primaries included in the data had catchment areas extending fewer than 200 metres from the school gates.
While other studies have drawn similar links between "outstanding" schools and house prices, this is the first to use the school catchment area data.
'Strike while the iron is hot'
Mark Rimell, an estate agent at Strutt and Parker, said: “Of course there is a premium to pay, as competition can be fierce. Even for younger families, many plan ahead as to where they want their kids to go to school, and will have the league tables in front of them, ready to strike while the iron is hot.
“Certainly, if an area suddenly lost its grade-one-status schooling, the area would be less desirable, and therefore it would negatively affect house prices.”
But Miles Shipside, Rightmove’s housing expert, added: “There are, of course, other factors that play a part in the overall asking price of an area – things like the size of properties and how high the demand is, especially if there’s a shortage of available property.”