Despite high demand for property in catchment areas for schools that are seen as high-quality, the value-added-premium that potential buyers are willing to pay for the privilege is falling, says RICS (Royal Institution of Chartered Surveyors) in a recent survey.
When a similar survey was last conducted, in August 2003, estate agents suggested buyers were willing to pay a 12 percent premium. With the exception of London, this percentage figure has fallen to eight percent, with the premium for primary schools lower than for secondary schools. Due to rising house prices the actual figure being paid has remained unchanged at £16,000.
The latest figures suggest that the substantial rise in house prices has led to affordability difficulties in the areas close to good schools, which in turn is putting a lid on prices in these sought after locations.
Jeremy Leaf, RICS spokesperson, says, ‘A secondary school with a good reputation can cause mayhem in a local property market. Buyers with children of school age will do and pay anything to get their children a place. However, our latest figures suggest some people are simply being priced out of the market in these key locations.
‘It is quite normal for potential buyers to check the local Ofsted reports before they read the particulars for their preferred properties. The education effect on property prices can extend well beyond the school run boundaries.’
Some estate agents, responding to the questionnaire raised the point that properties more suited to non-family purchasers can actually suffer because of their close proximity to a secondary school where the heavy traffic caused by school runs and children loitering around the premises out of school hours can be unappealing.