£31,000 premium in top school areas

Parents pay a £31,000 premium typically to buy a house near to one of England's top-performing state secondary schools, a report has found.

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The average price of a property in the postal districts of the top 30 state schools is £31,490, according to Lloyds

Parents pay a £31,000 premium typically to buy a house near to one of England's top-performing state secondary schools, a report has found.

The average price of a property in the postal districts of the top 30 state schools across the country is £31,490, or 12% higher than one in their neighbouring locations, Lloyds Bank found.

The study also highlighted how many parents on an average wage would struggle to afford a house near one of the best-performing state schools. The average house price of £295,972 in these areas is almost nine times the gross average wage at £33,740.

Lloyds used GCSE performance figures in 2012 from the Department for Education to make its findings. It said homes near Henrietta Barnett School in Barnet, north London, were the most expensive in the survey, costing around 20 times gross local annual earnings at £863,340.

People living near the school pay a typical "premium" of 87%, or £402,600, to buy a home there, with house prices in Barnet generally standing at £460,740, Lloyds said.

Homes within the postal district of Tiffin Girls' School and Tiffin (boys') School in Kingston-upon-Thames command the second highest premium, with house prices in the postal district standing at £617,454 on average, which is 51%, or £207,591, higher than those in the borough generally.

However, Lloyds also found that 12 out of the 30 top state schools have average house prices which are lower than those in neighbouring areas.

Houses near the King Edward VI Handsworth School in Birmingham cost 42% less than those in the surrounding county, marking the biggest percentage discount in the study.

The average value of a house near the Birmingham school is £94,843, compared with a typical price of £162,581 in the area generally.

Properties near King Edward VI Handsworth school were named as the most affordable in the study, costing around 3.3 times local earnings.

The study also looked at the 10 top-performing state schools in each region. It found that parents in the North West pay the largest premium to live near these schools, with house prices near the top schools in the region typically costing 28%, or £43,142, more than homes in the area generally. Parents in Yorkshire and the Humber face the second biggest premium at 18%, followed by those in London at 15%.

But in the South East, the South West and the West Midlands, the cost of a house near a top school was found to be less than the price of a home in those regions in general.

Nitesh Patel, a housing economist at Lloyds Bank, said: " All parents want to ensure their children have access to the best schools, so it is not surprising that homes in areas close to the top-performing state schools typically command a significant premium over neighbouring areas.

"However, with the availability of suitable homes in short supply, high demand has led to average prices in many of these areas being out of reach for many buyers on average earnings."

Lloyds used house prices held by the Land Registry for its calculations and took its earnings figures from the Office for National Statistics (ONS).

Here are the premiums paid to live near a top state school in each region, with the average house price near a top school followed by the average price in the region generally and the monetary and percentage difference, according to Lloyds Bank:

  • North West, £195,308, £152,167, £43,142, 28%
  • Yorkshire and the Humber, £200,245, £169,966, £30,280, 18%
  • Greater London, £414,360, £359,699, £54,662, 15%
  • North, £142,143, £134,310, £7,833, 6%
  • East Anglia, £214,396, £203,576, £10,820, 5%
  • West Midlands, £193,359, £189,718, £3,641, 2%
  • South East, £262,061, £271,539, minus £9,478, minus 3%
  • South West, £217,343, £227,211, minus £9,868, minus 4%
  • East Midlands, £144,395, £154,250, minus £9,856, minus 6%