Buyers prepared to pay large premiums for homes near good schools

Buyers prepared to pay large premiums for homes near good schools

Fast internet connections, good neighbours, a large garden and fantastic transport links are just a few of the factors that affect how much people are prepared to pay for a home in the last few years. 

However, one of the more traditional factors has become more prominent again, with new research showing that parents are prepared to pay a premium in order to get a home that secures their child a place in a good school. 

According to a survey published this week by Santander Mortgages, 26 per cent of people with children who are at or will soon be at school age were happy to pay extra for their house purchase to make sure they moved into a catchment area for a high-performing school. 

The average premium that parents are willing to pay currently sits at 18 per cent, which means that the average parent is happy to spend more than £32,000 more on a home just because it is located near a good school. 

Somewhat surprisingly, one third of all parents are happy to change their career or give up a good job in order to make sure they can move to a home in the vicinity of a good school, while a quarter even move away from their dream home and downsize to make sure they achieve their goals. 

Overall, some 61 per cent of parents who were surveyed and said they expected to move home before their child left home, said that they believed that catchment area would have at least some sort of impact on the decision they made when moving home. 

"With competition for school places fiercer than ever, parents are making significant financial and lifestyle sacrifices to be within the catchment area of desirable schools," said Miguel Sard, managing director of mortgages at Santander UK. 

"All buyers will have a wishlist of what they want their new home to have and being within a certain school catchment is increasingly common amongst young families but can often come at a cost."