Friday, April 15, 2005

Good schools add value to your property

Today's lesson teaches us that living near a top school doesn't only benefit the kids, says a report from Halifax...
Indeed, the average premium on house prices in an area with good schools is 12 per cent, according to the survey. For those not blessed with a good grasp of maths, on today's average house prices, that equates to £25,100.
The research was conducted to see whether or not there was a link between GCSE results and house prices. Halifax looked at Local Education Authorities in England and Wales with the best exam results and discovered that in eight out of ten cases, house prices did trade at a premium to the regional average.
Top MarksTop of the class with the highest proportion of students achieving good GCSE results (68 per cent) was Rebridge (Greater London). However, this was one of the two areas from the top ten to have an average house price trading at a discount on the regional price (-£27,637). Could do better.
The other area where the house price was lower than the region's average was Gateshead (North East), a discount of -£58,388. However, according to the report, Gateshead has the lowest house prices in the top twenty LEAs (average price £127,619) and, therefore, potentially the best value housing. It is also the area to have seen the biggest improvement in house price terms: a gold-star-earning 142 per cent since 2000.
Geography LessonThe other eight areas featuring in the Top Ten list all recorded house prices trading at a premium on the regional average. These were, in order, Sutton, Buckinghamshire, Kingston upon Thames, Trafford, Havering, The Vale of Glamorgan, Poole and Wokingham.
Out of the Top Twenty LEAs, the highest house prices were in Barnet (Greater London), at an average of £336,178. The area with the highest premium compared to the regional average was Solihull (West Midlands) at £71,441.
On a general Local Education Authority basis, Kensington & Chelsea in London had the steepest house prices at an average of £603,406. Highest outside of the South of England was Rutland (East Midlands) at £269,917 while the most reasonable average house price was found in Kingston-upon-Hull (Yorkshire & the Humber) at £82,999.
Tim Crawford, Group Economist at Halifax commented: "Good local schooling clearly matters to families and also to investors when they purchase a property.
"This link can be hard to quantify given the multitude of factors affecting the housing market but high standards of education and high house prices do seem to go hand in hand."

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