Housing prices in areas near the country’s best public schools are on the verge of a boom, real estate experts predict.
Estate agents are already receiving calls from parents wanting to move within the catchment areas of good state schools in the run-up to the general election.
This is because the Labor Party has confirmed that if it wins it would start charging VAT on private school fees, raising the cost of private education by a further 20 per cent from September.
According to research by education consultancy Baines Cutler, around 224,000 pupils currently attending private schools could end up transferring to the public sector because parents can no longer pay the fees.
Property experts have told the Mail how and when they expect house prices to move in the catchment areas of England’s top schools.
The Mail has also compiled a definitive list of all the schools in England that have been rated outstanding by Ofsted and the current rent and house prices around them.
Search our interactive list below for all of England’s featured schools and property prices nearby
Housing prices in these neighborhoods are expected to rise in the coming years, as families who can no longer afford private school try to move within the catchment area of good public schools, experts say.
Similarly, rental prices will also increase in these areas as competition increases.
Many parents are likely to turn to the best public schools, but they would need to ensure that they are within their catchment areas for their children to be admitted.
The effect on house prices in catchment areas where state schools are rated ‘outstanding’ by Ofsted would be dramatic, estate agents say.
Aneisha Beveridge, head of research at Hamptons estate agency, says: ‘There has always been a close connection between the quality of schools and the local property market.
‘Proximity to first-rate public schools is a powerful attraction for families interested in offering the best education to their children, which, in turn, has raised housing prices in the areas of influence.
“With Labor so far ahead in the polls, we are likely to see more such moves in 2024 as families try to get ahead of any future policies.”
As Labor plans to start charging VAT on private school fees should Sir Keir Starmer be elected Prime Minister, concerned parents are already looking for homes in the catchment areas of some of London’s best state schools.
Last year, 44 per cent of homes in the same zip code as a top secondary school were sold after a bidding war after receiving offers from three or more buyers, Hamptons figures calculated for Mail Plus show .
Homes near top public schools have also defied broader price declines.
Last year, the median cost of a single-family home near a prominent high school rose 3.6 percent year over year, outpacing the rest of the market.
Prices for single-family homes located near a school rated “inadequate” fell 1.2 percent during the same period.
Homes close to outstanding secondary schools cost an average of £540,350, which is an 8.1 per cent premium over the overall local authority average of £499,790.
More than one in ten (12 per cent) detached homes close to an excellent secondary school now cost more than £1 million, the highest proportion ever recorded and up from just 3 per cent a decade ago.
Edward Heaton, founder of estate agency Heaton & Partners, which has offices across the south of England, says he has already received calls from parents wanting to move “because they can’t afford an increase in school fees”.
“But with all the other rising costs they have had to absorb in recent years, it is the hard-working plumbers or businessmen whose children will suffer more than the rich bankers and their even richer clients,” he adds.
Henry Pryor, a purchasing agent and property expert, said there was “likely to be” an impact on house prices in some catchments, but it should be “very localised”.
“There will be some parents who will spend more than the VAT increase to get the right address, but they will probably make it back when they sell,” he adds.
Tom Bill, head of residential research at Knight Frank in the UK, says buyers are already more proactively targeting the catchment areas of top state schools in anticipation of the VAT changes.
He says: “Therefore, any premium that currently exists, which is typically most notable in primary schools, could increase.”
Could moving within the catchment area of a good public school save you money?
Some parents may be willing to pay a premium for a house close to a good state school because it would still save them more money than opting for a private school once VAT has been added.
Private school tuition fees average around £18,000 for day students. With VAT, that could be closer to £21,600. This would equate to around £151,000 for a child over seven years.
Education consultant Baines Cutler has warned that Labor’s plan could lead to around 224,000 pupils currently attending private schools transferring to the state sector because parents can no longer pay the fees.
Jennie Hancock, director of Property Acquisitions, the West Sussex estate agency, says: “Those with young children will consider the additional costs and decide it is better to invest some of the money they would have spent on private education on buying a house in the catchment.” primary and secondary in good condition.
“Even paying a 15 to 20 percent premium will allow them to realize substantial savings overall.”
He adds that the true impact of higher school fees on the housing market would not be felt until 2025/26 and for the following decade.
“Protecting children’s schooling from disruption is one of the most important considerations for any parent,” he says.
“There are certainly thousands of families struggling financially to afford private school, but I hope many are willing to pull whatever financial levers are necessary to ensure their children can stay as long as possible.”
“That could mean extending the term of your mortgage, paying interest only, or asking grandparents for help.”
For those really worried and thinking about moving, now is a good time, according to Bruce King, director of Saffron Walden-based estate agency Chefffins.
“With interest rates stabilizing and inflation declining, there is confidence in the market and we don’t expect the elections to have a big impact on prices,” he says.
Marc Schneiderman, director of estate agency Arlington Residential in central London, says homeowners living within the catchment areas of good schools could do well by selling if they don’t have school applications on the horizon.
“We are already receiving calls from concerned parents who believe they will not be able to cover the additional costs and are therefore looking for properties within the catchment areas of some of London’s best state schools,” he says.
‘Without a doubt it is a good time to sell in those areas. Without exception, every property we have sold in the last three months has received offers from more than one buyer.’
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