Good performing schools can boost house prices by £20k

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by Kay Murchie

According to research from the Nationwide Building Society, properties located close to the best performing primary schools in England can add almost £20,000 to the value of a home compared with an identical property in an area with a poorly performing school.

The building society said a 10% increase in the local primary’s Sats pass rate can add 3.3% - almost £6,000 to the value of properties close by.

On a regional basis, a property could see an additional 4.6% (£6,124) added in Yorkshire and Humberside, followed by 4.5% (£5,190) in the north of England and 3.6% (£5,173) in the West Midlands.

However in London, a 10% increase in the number of pupils achieving a level 4 grade can add £8,000 to the value of the average property, showed the research.

Commenting on the figures, Martin Gahbauer, chief economist at Nationwide, said: “In deciding on a location for their family, parents can place a great deal of focus on the level of education that the local school can provide for their children when growing up.”

“On balance, the extent to which primary school performance affects property prices will depend upon the range of schools in the area and whilst it is something that parents are likely to consider when buying a home, it is just one of a number of factors that impact house prices,” explains Mr Gahbauer.

However, the Nationwide believes improvements to a home would still have a deeper effect on its value than the performance of nearby schools.

Adding an extra bedroom or converting loft space could lift a property‘s price by 11.4% and 20% respectively.