Living in the catchment area of one of Britain’s best primary schools will cost buyers an extra 5% or £21,215 in cash, new research from Santander has found.
Many parents are so keen to secure a place for their child at one of the top 500 state primary schools outside London that as many as 63% have paid – or would pay – extra to own a property in their preferred catchment area.
The research shows that there has been a shift in the priorities of British homebuyers. Traditional, good transport connections and proximity to friends and family were at the top of potential buyers’ wish lists.
But being in the right place for the best schools is now becoming a crucial factor for both men and women, says Santander.
In 2019, only 26% of parents would have been willing to pay extra to live in the right catchment area. But this has risen to 63% today.
Santander also found that 18% of parents would sell their home to move to their desired catchment area, up from 13% in 2019.
And while the premium for living near a top school is 5%, parents on average said they would be willing to pay up to 12% more to own one of these premium homes.
It’s not just money that people sacrifice to get their child a place at the best state school. The research found that many parents would like to move up to 40 kilometers from their home and a quarter would start planning when they are pregnant or have just given birth.
This all takes its toll mental health and Santander reported that 20% felt stressed about the situation, while 10% were unable to concentrate at work, and 10% also suffered from sleepless nights.
Graham Sellar, head of mortgage development at Santander, said: “It is clear that finding a desirable primary school for your child is playing an increasingly important role in the property market for parents.
“As a parent, I know all too well the sacrifices we make to support our children, and as our research shows, many are starting to think about moving to secure a place at the right school, even before the baby was born.
“With almost a fifth of people willing to take the plunge and move away from home to secure their child a school place, it is no wonder that this has generated a significant ‘school care premium’.
“But because parents are willing to pay more than double the current premium to get into this area, and prices have been broadly flat over the past 12 months and mortgage rates are lower than last year’s highs, parents can move find it more affordable than initially expected. ”