7 days ago
Revealed: The area where parents would pay £81,000 MORE to buy a home near a good school
Parents are willing to pay tens of thousands of pounds extra for a home in the catchment area of a top state school - and Labour's VAT hike on private school fees is driving up competition.
According to Santander, parents would pay an average of £45,000 extra to secure a home in the catchment of an Ofsted-rated 'good' school.
Almost three in four parents say they would be willing to pay over the odds to live in an area where their children would be prioritised for a place at such a school.
On average, parents would be willing to pay 15 per cent more to live within 'good' catchment boundaries, some £44,736 extra on top of the Halifax House price index's average price tag of £298,237.
School catchment areas are the geographic areas around a school and children who live in that area are usually considered first when it comes to places.
Some 73 per cent are willing to pay a premium to secure a spot in one of these areas - and this has jumped compared to 63 per cent last year as competition heats up for state school spots.
Private school fee hike drives up competition
Places in top state schools are the latest hot commodity after January's VAT hike of as much as 20 per cent on school fees.
VAT had never before been charged on private school payments, but Labour's manifesto revealed it would scrap the exemption for private schools, which previously saw them free of the 20 per cent tax.
This came into force in January of this year in a bid to bolster the Treasury's dwindling coffers.
And competition for state school spots is only set to get hotter, as 21 per cent of parents say they plan to pull their children out of private schools in the wake of the higher fees.
Of this group, some 69 per cent say they would relocate to get their children into the best state school catchments, Santander says.
David Morris, head of homes at Santander, says: 'Parents are understandably digging deep into their financial and emotional reserves to give their children a great education.
'There is good news for parents however, as a record number of properties coming to the market, combined with stabilising interest rates and improved affordability, will hopefully help some of them bag an outstanding home in their dream catchment area.'
What's the good school premium in YOUR area?
London parents willing to pay an extra 15 per cent to buy their home would have to fork out an extra £81,000 on the average house price, bringing the total to £620,901.
In the south east it's a £58,239 hike to £446,499, while in the east of England it's a £50,174 jump to £384,668.
In the east midlands, parents could pay £36,777 more, in the west midlands it's a £39,040 premium while in the southwest parents are happy stumping up £45,346 more.
For the north west the premium works out at £36,344, in Yorkshire and the Humber it's £32,330, while in Northern Ireland it's £32,225.
For Scottish homes, a 15 per cent premium is an extra £32,286 while for Welsh homes it's £34,189.
The lowest premium is on homes in the north east homes where a 15 per cent premium works out at £26,588, hiking a home's price tag to £203,839.
Such is the clamour for a place at a top school, that some parents say they would be willing to pay an extra 25 per cent on top of the average home's price tag.
That's an extra £74,559 on the typical property, which hikes the purchase price to £372,796.
NOT all state schools have catchment areas
Parents should do their research before they decide to move to a particular area, however, as not all state schools have catchment areas.
Admissions could instead be based on entrance test results, so it is vital to check the school's criteria.
Even if a school does have catchment area, living in one doesn't guarantee a child's place in a school.
The school could be oversubscribed, or prioritise applicants within the catchment area based on test scores.
Catchment areas can also change, so there's no guarantee if you buy a house now that your child will later be admitted to the school of your choosing.
And not only could that derail any plans for younger children to attend that school, it could cause your house price to take a tumble when it's time to sell as demand falters.
But the fight for a spot in a hot catchment area is doing more than just squeeze the finances of these parents.
One in three parents say the stress of not getting the desired catchment led to them considering home schooling.
Meanwhile three in ten parents have lost friends in the fierce competition for a place in a top school and one in six have had sleepless nights.
The new research shows families would also be willing to uproot and move an average of 31 miles to bag a place in a top-tier school, which is nine miles further than a year ago.
> Are you pulling your child out of private school? Email
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