The Ofsted effect: Homes close to schools with an outstanding rating across England carry a £37,000 premium, findings claim
- Postcodes in England near schools rated outstanding by Ofsted carry premium
- Data by GetAgent suggests the property premium is around £37,000
Postcodes home to a school with an outstanding Ofsted rating command the highest prices across England, according to new research.
The current average house price across postcodes near a school rated by Ofsted as outstanding sits at £342,677, having climbed by £40,145, or just over 13 per cent, in the last year alone, experts at estate agent comparison website GetAgent suggest.
This represents a 14.5 per cent, or £37,477, property price premium when compared to postcodes where schools were ranked as requiring improvement, and a difference of over £5,000 in property price appreciation in just one year.
Ofsted rules: Postcodes home to a school with an outstanding Ofsted rating command the highest prices across England, according to new research by GetAgent
Many parents and guardians buy or rent in the catchment area of outstanding or good rated schools in a bid to give their child the best possible education and start in life. But it can prove a costly move in terms of property prices.
Colby Short, co-founder and chief executive 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 command 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.’
In postcodes where a school has been rated as requiring improvement, the average cost of a home stands at around £305,230, having increased by 13 per cent or £35,067, in the last year.
In demand: Properties across England near a school rated outstanding are in high demand
And in postcodes where schools were rated as good, the average home has a price tag of about £341,238 in the current market, which is 11.8 per cent or £36,008 more than postcodes where schools were rated as requiring improvement. In these postcodes, house prices have climbed by 13.2 per cent over the last year, representing an increase of £39,734.
The analysis by GetAgent was focused on the current average house price across thousands of postcodes that are home to an Ofsted rated school throughout England.
Data published by the Office for National Statistics last month revealed that UK house prices increased by 7.8 per cent in the year to June, down from 12.8 per cent in May.
Despite UK house prices increasing between May and June, annual house price inflation slowed due to the rises in prices seen in June 2021, which were the result of tax break changes, the ONS said.
The average UK house price was £286,000 in June, which is £20,000 higher than this time last year. The next ONS House Price Index is due to be published on 14 September.
This week, data from Halifax revealed that house prices in the UK increased in the year to August after a fall in July.
However, on a monthly basis house price inflation slowed to 11.5 per cent, down from 11.8 per cent in July. The average UK house now costs a record £294,260 according to the bank’s latest house price index.
But, the annual rate of growth for the year to August 2022 slowed to its lowest point in three months. Over the quarter house prices increased 2.6 per cent.