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Demand for Homes Close to Top Schools Continues to Rise

The fact that parents want the best for their children should come as no surprise to anybody, but have you considered just how much of an impact this can have on the search for a new home?

In 2017 the Department of Education released a report analysing three years’ worth of house price data to explore the relationship between school performance and house prices. 

The report showed that the value of houses near the poorest-performing schools was lower than those of the surrounding areas, while house prices near the 10% best-performing primary schools were 8.0% higher than in the surrounding area.*

With the new Labour government planning to increase VAT on private school fees, competition for the best-performing public schools could soon increase.

According to data from Dataloft, 24% of agents report noticing an increase in demand for homes close to outstanding rated schools, directly associated with the announcement to increase VAT on private school fees. 

Although 90% of schools have achieved a rating of between good and outstanding, only 15% of schools are judged to be Ofsted Outstanding – suggesting that competition for places in these schools is likely to be intense.

* School Performance and House Prices: Analysis (March 2017)

• The government announced plans to impose VAT on private school fees to fund improvements in public education.
• The current exemption from value-added tax (VAT) will be removed to fund 6,500 new teachers in England. VAT at the standard rate of 20% will be added to private school fees starting 1 January 2025.
• In a poll of agents, 24% report noticing an increase in demand for homes close to outstanding rated schools, directly associated with the announcement.
• Just 15% of schools are judged to be Ofsted Outstanding, but 90% achieved the rating: Good or Outstanding, up from 68% in 2010 – suggesting that standards are continuing to improve. (Department for Education). 

Source: Dataloft by PriceHubble poll of subscribers. Poll 24th July 2024

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