Newly released research by estate agent comparison site, GetAgent.co.uk, shows that homes close to a school with an outstanding Ofsted rating not only command the highest house prices, but they’ve also seen the highest rate of house price growth since the last school year started.
GetAgent analysed the current average house price across thousands of postcodes that are home to an Ofsted-rated school across England.
The results show that in postcodes where a school has been rated as requiring improvement, the average cost of a home sits at £305,230 having increased by 13% or £35,067 in the last year.
In postcodes where schools were rated as good, the average home currently commands £341,238 in the current market, 11.8% or £36,008 more than postcodes where schools were rated as requiring improvement. In these postcodes, house prices have climbed by 13.2% in the last year, an increase of £39,734.
However, postcodes home to a school with an outstanding Ofsted rating command the highest price. The current average house price across these postcodes sits at £342,677, having climbed by £40,145 in the last year alone (+13.3%).
That’s a 14.5% property price premium (£37,447) when compared to postcodes where schools were ranked as requiring improvement and a difference of over £5,000 in property price appreciation in just 12 months.
Colby Short, Co-founder and CEO of GetAgent.co.uk said, “The presence of a good school is an incredibly influential factor when it comes to local property market values and so it’s no surprise to see that postcodes home to a higher rated school also commands a higher average house price.
“High demand for housing within the catchment areas of these schools drives up property values as parents scramble to secure a spot for the children. As a result, not only do homes command more, but those close to a top-rated school are also subject to a higher rate of house price growth due to a more competitive property market.”