Investors in the residential property market should explore areas around the top state schools, if new research is anything to go by. According to Lloyds Bank, people will in fact pay a premium of GBP 31,500 to live close to a good educational institution, with the average asking price around the top 30 state schools in the country standing at GBP 295,972. Conversely, neighbouring locations fetched an average of GBP 264,482. Indeed, a third of locations close to top state schools command housing premiums of over GBP 80,000.
The largest premiums can be found in homes in the postal district of the Henrietta Barnett School in north London, where properties trade at a premium of 87 per cent (GBP 402,600) to the average house price in neighbouring areas. Tiffin Girls' School and Tiffin School (boys) in Kingston-upon-Thames command the second highest premium at 51 per cent (GBP 207,591) to the average for the borough.
However, not every top state school is located in an area with high prices. More than a third of England's best institutions are in places where property prices are below the average of those in neighbouring areas. In the postal district of King Edward VI Handsworth School in Birmingham, for example, properties are GBP 67,738 below the county average at GBp 94,843. Kendrick School and Reading School are also located nearby homes with an average price of GBP 202,721 - GBP 108,033 lower than the county average.
Nitesh Patel, housing economist at Lloyds Bank, said: "All parents want to ensure their children have access to the best schools, so it is not surprising that homes in areas close to the top performing state schools typically command a significant premium over neighbouring areas. However, with the availability of suitable homes in short supply, high demand has led to average prices in many of these areas being out of reach for many buyers on average earnings."
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- Thursday 31 October 2013