Living in the catchment area of one the UK’s top primary schools will cost buyers an additional 5% or £21,215 in cash terms, a new study by Santander has revealed.
So eager are many parents to secure their child a place at one of the Top 500 state primary schools outside London, as many as 63% have paid – or would pay – extra to own a property in their preferred catchment area.
The research suggests there has been a shift in priorities for UK homebuyers. Traditionally, good transport links and proximity to friends and family were top of the wish list for would-be buyers.
But being in the right area for the best schools is now emerging as a critical factor for both men and women, said Santander.
Indeed, back in 2019, just 26% of parents would have been willing to pay extra to be in the right catchment area. But this has soared to 63% today.
Santander also found 18% of parents would sell their home to move to their desired catchment area, up from 13% in 2019.
And whilst the premium for living close to a top school is 5%, on average parents said they would be willing to pay up to 12% more to bag one of these premium properties.
It’s not just money people are sacrificing to secure their child a spot at top state school. The survey found many parents would happily relocate up to 25 miles from their home and a quarter start planning when they are expecting or have just given birth.
This is all taking a toll on mental health and Santander reported 20% felt stressed about the situation whilst 10% were unable to concentrate at work, and 10% also suffered from sleepless nights.
Graham Sellar, head of mortgage development at Santander, said: “It’s clear that nabbing a sought-after primary school place for your child is playing an increasingly significant role in the property market for parents.
“As a parent myself, I know only too well the sacrifices we make to support our children, and as our research shows, many start thinking about moving homes to secure a place at the right school even before the baby has been born.
“With almost a fifth of people up for taking the plunge and moving homes to secure their child a school place, it’s no wonder that this has created a sizeable ‘school catchment premium.
“However, with parents willing to pay more than double the current premium to get into the area, along with prices remaining largely flat over the past 12 months and mortgage rates lower than last year’s highs, parents might find moving more affordable than initially expected.”
