High performing primary schools add value to property prices across all regions of the UK but particularly in Yorkshire and Humberside, according to a new report.
A 10% higher Standard Assessment Tests attainment equates to an average property price premium of 3.3% as families are prepared to pay more to live near a good school, research from the Nationwide Building Society shows.
In some parts of the country the premium was 4% of greater with Yorkshire and Humberside experiencing a 4.6% premium and the West Midlands 3.6%.
The lender used its House Price Index and primary school performance tables published by the government to assess the impact of high performing schools.
‘In deciding on a location for their family, parents can place a great deal of focus on the level of education that the local school can provide for their children when growing up.
Primary school catchment areas tend to be relatively small and are driven by proximity to the school,’ said Martin Gahbauer, Nationwide’s Chief Economist.
The report isolated the specific impact school performance has over and above other property characteristics, such as property type, size and local neighborhood type.
Across England, an otherwise identical property will command a premium of 3.3% (nearly £6,000), if the local primary school has a 10% higher pass rate.
This is up from the 2.4% premium recorded the last time Nationwide conducted research in 2004.
The report also looked at how primary school performance compares with other features that impact on property prices.
It found it adds more to property value than a second bathroom, but somewhat less than a 10% increase in floor area.
Other more substantial improvements, such as a loft conversion, can add as much as 20% to a property’s value.
‘On balance, the extent to which primary school performance affects property prices will depend upon the range of schools in the area and whilst it is something that parents are likely to consider when buying a home, it is just one of a number of factors that impact house prices,’ explained Gahbauer.
