Property costs an average of £359,000 near schools rated as ‘outstanding’

An estate agent has analysed current housing market data for almost 18,500 schools across England including those in Merseyside. They looked at the average house price in each school’s postcode and how the cost of home ownership differs depending on Ofsted rating.

The research conducted by Yopa shows that living near ‘outstanding’ rated schools commands a house price premium in comparison to lower rated schools and the surrounding area. Higher house prices generally correspond with better schools. An interactive map (see below) shows the school property premiums across the country, and what parents can expect to pay in each area.

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Property costs an average of £359,000 near schools rated as ‘outstanding’; £305,000 near ‘good’ schools; £277,000 in postcodes where a school ‘requires improvement’, and £243,000 for schools branded as ‘inadequate’. This means it costs £116,000 more to live near an ‘outstanding’ school compared to an ‘inadequate’ one.

Interestingly, Yopa found that only those schools rated as ‘Outstanding’ were home to a property market house price premium. On average, postcodes boasting an outstanding school also boast an average house price some 2.8% higher than the average found across their wider local authorities.

CEO of Yopa, Verona Frankish, said: ‘’Labour’s move to scrap VAT tax relief on private schools will make attending more expensive, which could persuade more parents to put their children into highly rated state schools.

“Living near a good state school already commands a premium, and if more are persuaded to move nearby that could cause the gap in price between the best and worst schools to further widen.’’

You can look at the average house prices in each school’s postcode and how the cost of homeownership differs depending on Ofsted rating using the interactive map below.