As national offer day approaches, Tepilo looks at the premium parents are willing to pay to ensure their children’s place at the best school.
When families look to move home, schools are undoubtedly one of their biggest considerations. It's not uncommon for parents to move to an area in order to secure a place for their children at a specific school.
Competition for places at the country's best schools is rife - some 86% of 'outstanding' state primary schools in England are oversubscribed, according to 192.com's FindASchool tool.
With this in mind, it raises the question: just how much are parents willing to pay to make sure their children get a place at the best schools?
A fresh study from Rightmove, analysing 192.com FindASchool data, has looked into just that, revealing that the average asking price premium to live in the catchment area of an 'outstanding' state primary school is £52,372.
This price premium covers those moving from a location in the successful admission area of a school that is rated by Ofsted as 'requires improvement' (grade 3) to a property in the catchment area of an 'outstanding' school (grade 1).
The biggest regional difference between moving from a grade 3 admission area to a grade 1 location was recorded in the West Midlands at 32% (£52,919). The highest monetary premium was recorded in the capital at £80,542.
According to the research, only 20% of English state primary schools are rated as 'outstanding'. Some 62%, however, have been graded 'good' (grade 2) by Ofsted.
The average price difference between securing a home in a grade 2 area and a grade 1 area is £36,889, 12% above the average national asking price of £350,339.
The highest regional premium in terms of price difference between areas with 'good' and 'outstanding' schools was also recorded in the West Midlands at 17%. Meanwhile, the largest premium in terms of value was found in the South East at £40,215.
These days, living close to an 'outstanding' primary school may not be enough to secure a place. According to 192.com, some Ofsted 'outstanding' schools have successful admission areas of less than 100 metres. This is something parent property hunters with a strong focus on education will be aware of and is likely to put more upward pressure on asking price premiums.
Each year, school applications close in January, with the 'National Offer Day' falling in April. As parents looking to place their children in the best schools for the 2018/2019 academic year start to build up to the January deadline, the next few months are likely to usher in a period of increased activity in local property markets near the best schools.
Property sellers who live in these areas should make sure that they make the most of their location and prospective buyers - notably families - are made aware of the school catchment areas that the property falls into.
Of course, there are priorities other than schools which are important to buyers. We recently looked at research which pinpointed access to a local supermarket, post office and train station as three of the most important criteria for the average property purchaser.
However, those house hunters with an eye on their children's future are likely to compromise on other features if it means they can place their offspring in their desired primary school. What's more, as we can see above, they are also likely to part with more cash in order to secure a home which guarantees a place at the best schools and so sellers located near schools ranked ‘outstanding' and 'good' by Ofsted should bear this in mind when they come to put their property on the market.