Parents face paying £52,372 more on average to live in an admissions area of a primary school rated as “outstanding” by education regulator Ofsted, research claims.
Data compiled by Rightmove and the FindASchool comparison service from 192.com shows that parents can end up paying 18% more to live near a school with an Ofsted grade one or “outstanding” rating compared with those “requiring improvement” or ranked as grade three.
Ofsted ranks schools across four grades. A grade one ranking means a school is deemed to be “outstanding”, grade two is “good”, a three “requires improvement”, while a four means a school is “inadequate”.
The research used asking prices from Rightmove and applied them to data from 192.com showing areas a buyer would need to live in to meet the entry criteria for a school across the top three grades.
The average asking price for a property in an area with an outstanding school is £350,339, dropping to £313,450 for a “good” school and £297,967 for one “requiring improvement”.
Obviously there are some limits to these figures as they are based on asking rather than sold prices and Ofsted now provides fewer outstanding ratings.
There is also no guarantee that a school will always stay at the same level, or that a child would get in.
Miles Shipside, housing expert for Rightmove, said: “Looking for the right home near the right school is one of the most important factors that home-hunters tell us they look for when they’re thinking of moving.
“Many are willing to compromise on other factors if it means getting their children into a good or outstanding school.
“Our study with 192.com for the first time puts a price on the premium of actually securing a place at a good or outstanding school, and highlights the challenges that many parents need to go through to secure a place at a school and a home that they know is right for them.
“There are of course other factors that play a part in the overall asking price of an area – things like the size of properties and how high the demand is, especially if there’s a shortage of available property.”
Dominic Blackburn, product director of 192.com, said: “Previous studies have shown links between outstanding schools and house prices, however our data is the first data that is based on whether the property would have secured a place at the school.
“Living near a school is not necessarily a guarantee of securing a place with some Ofsted outstanding schools having successful admission areas of less than 100 metres.
“It is important that property seekers know if the house they are looking at was in last year’s successful admission area and how that affects the property price.”