Parents prepared to spend more to live near state schools

Parents prepared to spend more to live near state schools [Photo: BrianAJackson via iStock]

British parents are prepared to spend more money on a home if it means they can move into the catchment area of high performing state schools, according to the results of a new study released this week. 

According to findings published by Lloyds Bank, parents are willing to spend far more to live near the top 30 performing state schools in the UK. Its report said that the average parent in this situation would be happy to spend £53,000 more than they would elsewhere just to get themselves a foot on the property ladder in their preferred school's catchment area. 

Lloyds said that areas near to the best schools already come with a premium. According to its findings, the average house prices for these 30 postcodes stands at more than £366,000. This is a staggering 17 per cent higher than the national house price average at present. 

Not only are prices in these areas more expensive to purchase, however, but they also represent a far better investment opportunity and offer buyers the chance to see more sizeable capital gains than they would have in the general market. 

Looking at how prices have changed in the past five years, Lloyds reports that parents who had bought a home in an area that would get their kids into one of the best performing schools in the country in 2011 would have seen their homes increase by an average of £76,000 in value since. 

This is a long way ahead of the national average house price change in the same period, it said. During the same five years, the average property price has climbed by just £42,000, showing how homes near to good schools can be not only a short-term option for education, but also a fantastic long-term investment opportunity.