Proximity to quality schools is now a critical consideration

Many UK parents face a growing financial burden as they attempt to secure places for their children in top-state primary schools. According to the latest analysis from Santander, some families are paying a premium of 5%—equivalent to £21,215—to live within the coveted catchment areas of these schools. This trend is gaining momentum as homebuyers are willing to move up to 25 miles to ensure their children can attend a highperforming school.
As private schools prepare to increase their fees due to the government’s decision to apply VAT charges, more families are considering alternative options. From 1 January 2025, standard 20% VAT will apply to private school fees, adding a significant financial burden. Additionally, private schools that hold charitable status will lose their business rates relief from April 2025. These changes will likely drive more parents towards state schools, further inflating property prices in desirable areas.
RISING DEMAND AND SHIFTING PRIORITIES
The analysis has highlighted a significant shift in homebuyer priorities, with proximity to quality schools now a critical consideration. The importance of education is overshadowing traditional factors such as transport links and proximity to family and friends. As a result, almost two-thirds of parents are either already paying or are willing to pay extra for a home within their desired catchment area—an increase from 26% just five years ago.
However, the analysis identified that this focus on educational opportunity has its pressures. One in five parents reported experiencing stress during the school application process, and many have difficulty concentrating at work or suffer from sleepless nights. The emotional toll is compounded by the financial sacrifices parents are willing to make, with some foregoing holidays or stretching their budgets to make the move possible.
HOUSING MARKET IMPACT
The current market dynamics show a significant premium for homes near top-rated state schools. Data from Yopa supports this finding, revealing that homes near outstanding schools cost an average of £359,000, compared to £243,000 for homes near inadequate schools. This difference of £116,000 underscores parents’ substantial financial commitment to their children’s education. As more families opt for state over private schooling due to escalating fees, the demand for properties in these catchment areas is expected to grow.
This could widen the price gap between homes near top-performing schools and those near less desirable ones. However, despite these challenges, the combination of largely stable house prices and currently lower mortgage rates may make moving more feasible for some families than initially thought.
LOOKING AHEAD TO FUTURE TRENDS
The landscape of education driven property purchasing is set to evolve as financial pressures mount on some parents. With the potential for further increases in premiums due to private school fee rises, families will need to consider their options carefully. The trend suggests that living near a top state school will continue to be a key driver in the property market, influencing both emotional and financial decisions for parents across the UK.
>> READY TO DISCUSS MORTGAGES? <<
Are you looking to support your adult children on their path to homeownership? Our team of mortgage experts is here to provide all the information and guidance you need.
Cedar Crest Ltd – telephone UK T: +44 (0) 203 883 1017,
UK (For Cantonese and Mandarin enquiries):
+44 (0) 7888 431091Â
+44 (0) 7724 344788Â
HK T: +852 6645 4462Â
SINGAPORE: +65 8363 9221
– email info@cedar-crest.co.ukÂ
Your home may be repossessed if you do not keep up with repayments.
Comments