Property prices pushed up by schools

Research shows the performance of primary schools affects house prices in the surrounding area.

08:57 16 September 2004

Research shows the performance of primary schools affects house prices in the surrounding area.

Nationwide has found that the quality of a local primary school has a knock-on effect on property purchase, with a one per cent higher pass rate equalling a property price premium of 0.25 per cent.

Nationwide's group economist, Alex Bannister, commented: "Since catchments are relatively small and most parents want to limit the time that their children spend travelling to school, it would seem logical if properties that are close to a 'good' school command a premium."

Using the primary school performance tables Nationwide calculated that property prices increase as the average pass rate increases.

In the outer south-east, an identical property in an identical neighbourhood will command a property price premium of four per cent (or 7,220) if the nearest school has a ten per cent higher pass rate.

It would appear from the research that the influence of school performance across regions does not follow a north-south divide.

Although the highest premium paid is in the outer south-east, with 707 for a one per cent higher pass rate, the Midlands and Yorkshire and Humberside are not far behind with premiums of 677 and 624, respectively.

In percentage terms, the biggest impact of school performance is in Yorkshire and Humberside where a one per cent change increases the property price by 0.48 per cent.