Poor performance in school league tables may adversely affect local house prices
School league tables can have an enormous impact on property prices. The length parents will go to get their children into the best schools is simply astonishing. And they are equally vociferous in their bid to avoid badly performing schools. Whether it’s a matter of reputation or a bad OFSTED report, there is some reliable evidence to suggest that house prices in the UK are negatively affected by poor quality of schools in the local area.
According to a survey commissioned by the Nationwide Building Society, homes in the catchment areas of the best performing state schools can cost nearly £20,000 more than comparable properties in other areas. According to the same research, it is in the interest of local home owners to have well-performing schools on their doorstep. According to Nationwide, a modest 10 percent increase in the pass rate for the SATS exams can translate to a near £6,000 premium on house sale prices in the surrounding areas. There is undoubtedly a correlation between school performance and property prices.
The stats surrounding UK property prices and local schools
According to official OFSTED figures in 2009, 70 percent of English primary schools achieve level four or above at Key Stage 2, but just 2.4 percent of those schools achieved a 100 percent pass rate. It is those few schools top of the school league tables that have the biggest impact on local property values and therefore the value of your house. Boosting local house prices by up to 11 percent, high-performing schools are to the benefit of all local home owners – whether they are parents or not. Unfortunately, the opposite is true for poor schools. Although poor school performance is often related to deprivation in the catchment area, it does appear that poor results can adversely affect average sold house prices locally.
How does your local area fare in the school league tables?
There are huge variations in school performance across the country, Locrating is a useful resource to identify OFSTED performance and school league tables in your local area. Land registry house prices is a useful resource to identify trends in sold house prices historically; Zoopla house prices shows more current trends.
SATS results and house prices
A mere 10 percent improvement on SATS results can boost house prices by over 3 percent, according to the Nationwide. During the 2009 study, Yorkshire and Humberside came out on top in terms of rises in house sold prices according to school performance – with average rises of a quite amazing £5,173 recorded.
Property values can be affected when school performances deteriorate
Schools that have received less than favourable OFSTED reports or those struggling to achieve average pass rates will be avoided by parents, and that will have a knock-on effect on local property prices. Not only will demand for homes in the affected areas drop dramatically, many parents already living in the catchment areas of poorly performing schools will seek to move elsewhere. This rise in the supply of homes and decrease in demand can have profound effects on house sale prices.
Unfortunately, highly performing schools are in great demand, and parents will often go to incredible lengths to get their children into the best ones. While some areas are suffering significant falls in average property prices, others are enjoying steady rises. In some instances, parents are prepared to upgrade their property simply to guarantee a place in their chosen school. In the most extreme cases, parents have been known to buy homes and allow them to stand empty – simply to secure a school place. This drastic action is, however, usually cheaper than paying for 13 years of private education, and it is becoming an increasingly popular tactic.
Does a bad OFSTED report mean home valuations will start to fall?
Despite the apparent link between property values and the quality of nearby schools, any school is susceptible to an unusual, one-off downturn in performance. While such an occurrence may have a small effect on house prices, it shouldn’t be the deciding factor in a person’s decision to sell. School performances are often cyclical, and what could be an under-performing school one term could be at the top of the school league tables the next.
So, according to the Nationwide Building Society and various other property analysts, poorly performing schools CAN have a detrimental effect on surrounding house prices. However, with so many government targets, the impending performance-related pay structure for teachers and the budget incentives for better performance, many schools have an opportunity to turn themselves around – lifting house prices in the area back up with them.
Do you need help in relocating nearer to a preferred school?
Relocating to follow the best performing educational establishments in the OFSTED school league tables is a big step, so you need to get the best and highest price paid when you sell your home. Using an estate agent can usually get you a sale in 6 months or so, but if you need to sell quicker than this then Flying Homes can help. We are quick sale specialists, and hopefully we can pay more than any other quick sale company, so give us a call on 0800 68 99 420 or fill in our online quote form!