What kind of premium do homes need top schools offer?

Lloyds Bank recently conducted research to showcase just how much of a premium can be added to properties located close to top performing state schools in England. The findings are startling, showing that the average price is £415,844. This works out as 45% above the figure for the whole country.

The growth in the last five years in these areas has also outpaced the national average. According to the data, the average gain in areas with a top performing school has been £116,696 (39%). Across the whole of England though, the growth was £51,264 (22%).

The two areas that performed the best have huge premiums over properties in neighbouring areas. The top performer is Beaconsfield in Buckinghamshire. Homes near Beaconsfield High School had a premium of £643,181, an astonishing 158% more than houses in the wider area.

Henrietta Barnett School in the Hampstead Garden Suburb, London Borough of Barnet, came second. The premium for a home close to one of the highest performing state schools in the whole of the UK was £367,632 or 59% above the price in the neighbouring areas.

Surprisingly the data did reveal that 14 of the top schools were in locations which had property prices below the average in neighbouring areas. Surprisingly the Reading School and Kendrick School, both in the same town and located under a mile away, had dramatically lower prices than neighbouring areas. Discounts of 32% (around £132,718) and an average price of £288,430 make these areas very popular.

As you can see living close to a high performing state school can come down to location. Already attractive areas such as Barnet in North London see even higher prices in areas with good schools.

Investors should take advantage of the premiums that some areas close to local schools can offer. These homes would make great investments, particularly with demand remaining high and some people who want to live in the areas unable to affordable to buy. This leaves them looking at rentals. A landlord could enjoy medium term tenants who will stay for at least 5 years while their children go through school.

At Finefair we offer a wide array of services throughout London. One area where we excel is providing guaranteed rent Barnet landlords can use to secure their income. We are highly regarded for this service and provide excellent assurances. Our team are professional at all times whilst also being approachable. This ensures we deliver great value.

If you would like to discuss guaranteed rent with us, or investing in properties in Barnet, please come to us for advice.