Parents shell out extra £30,000 for home in right school catchment area
New study reveals the astonishing premium parents will pay to secure a property in the right postcode.
Research has found that parents looking to buy in a desirable school catchment area will pay tens of thousands of pounds more for their home.
Over a quarter of parents with school age children have bought or rented a new property in order to secure an address within their desired school catchment area, according to research by Santander Mortgages. These parents are paying premiums of up to 18% for those homes. That’s equal to an incredible £32,127 for the average home.
Average property premiums
The premium you have to pay for a property in your desired postcode varies depending on which region you are buying in, as the table below demonstrates. While those in London pay the biggest premium in pure cash terms, when you look at the percentage premium it's actually those in the North East and Scotland who are forking out the most to get within the right catchment area.
|
Region |
Average premium percentage Paid |
Average price in the region |
Average premium paid |
|
North East |
21% |
£98,374 |
£21,086 |
|
Scotland |
21% |
£179,790 |
£37,996 |
|
East Midlands |
18% |
£135,033 |
£24,209 |
|
South West |
17% |
£135,033 |
£22,506 |
|
East of England |
17% |
£201,465 |
£33,242 |
|
London |
16% |
£474,544 |
£77,113 |
|
South East |
15% |
£135,033 |
£20,846 |
|
Wales |
15% |
£117,032 |
£17,555 |
|
North West |
15% |
£113,301 |
£16,612 |
|
West Midlands |
13% |
£137,121 |
£17,277 |
|
Yorks & Humber |
8% |
£123,471 |
£9,557 |
Parental sacrifices
It isn’t just money that parents are prepared to part with in order to get their kids into a desired school. Almost a third (31%) have had to change jobs as a result of the move, while 25% had to buy a smaller home in order to be able to afford to live near a good school.
Having gone through all that, over three quarters of parents admit that the move is short term and they intend to leave the area either once their child has secured a place at the school, or they have finished school.
“With competition for school places fiercer than ever, parents are making significant financial and lifestyle sacrifices to be within the catchment area of desirable schools,” says Miguel Sard, managing director of mortgages at Santander UK. “All buyers will have a wish list of what they want their new home to have and being within a certain school catchment is increasingly common amongst young families – but can often come at a cost.”
The most likely to move
Overall it is parents living in the North East and London who are most likely to move in order to secure an address in a specific catchment area, with almost half of parents moving. In contrast just 11% of parents in Wales feel the need to shift properties for the sake of a school place.
|
Region |
Sold old home and moved |
Purchased a second property |
Rented a new home or second property |
Total |
|
North East |
24% |
12% |
10% |
46% |
|
London |
18% |
17% |
11% |
46% |
|
South East |
6% |
17% |
11% |
29% |
|
Yorks & Humber |
11% |
8% |
6% |
25% |
|
North West |
13% |
9% |
3% |
24% |
|
East Midlands |
12% |
11% |
1% |
24% |
|
West Midlands |
9% |
9% |
4% |
22% |
|
South West |
4% |
9% |
3% |
16% |
|
Scotland |
7% |
4% |
3% |
14% |
|
East of England |
3% |
9% |
2% |
14% |
|
Wales |
5% |
4% |
2% |
11% |
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