Parents Pay £41k Premium To Buy Home Near Top Performing Schools, Report Finds
20 September 2017, 06:20
Parents are paying a £41,000 premium to buy homes near the country's top performing state schools, new research suggests.
Homes near Cults Academy in Aberdeen have the highest premium of £102,497 which is 52% higher than average house prices in neighbouring parts of the city, according to the Bank of Scotland study.
People buying near Boroughmuir High School in Edinburgh pay the most, with an average house price of £365,804 which is £121,952 (50%) more expensive than the surrounding area.
Houses near Bearsden Academy and Boclair Academy, both East Dunbartonshire, are 31% higher than the local average, with buyers paying a £71,040 premium.
However prices near eight of the top 20 performing state schools, including Williamwood High School in East Renfrewshire, are lower than the average cost in the surrounding area.
St Luke's High School in East Renfrewshire comes with the biggest discount of £100,291 (40%) followed by St. Ninian's High School and Lenzie Academy, both in East Dunbartonshire, with a discount of £55,369 (24%).
Graham Blair, mortgages director at Bank of Scotland, said: "When buying a home, parents understandably want their children to be close to a top performing school. In areas such as Edinburgh and Aberdeen, the price tag for a house close to the best state schools is unsurprisingly large.
"However, in other areas, particularly East Renfrewshire, this doesn't appear to be the case with three of the top five schools being reasonably affordable, or even cheaper than houses in the surrounding area."
Scotland's top performing Jordanhill School in Glasgow comes with a house price premium of £3,521 (2%)
The second best performing school, St. Ninian's High School in East Renfrewshire, comes with a premium of £16,659 (7%), third placed Mearns Castle High comes with a slightly higher premium of £36,291 (15%) while fourth placed Williamwood High comes with a discount of £14,091 (6%).
All three schools are located in East Renfrewshire.
The Bank of Scotland research found the average cost of a house near one of the 20 top performing state schools is £231,476.
Analysis showed that house buyers are paying a premium of £41,441 (22%) when compared to houses in surrounding areas where the average price is £190,035.
The research suggests that living near a top performing state school could be a shrewd investment based on house price performances over the last five years.
Parents who bought a home near one of the top 20 schools in 2012 have seen an average house price rise of £45,493 (from £185,983 in 2012 to £231,476 in 2017) - an increase of 24%.
The biggest increases in prices in the top 20 have been in East Dunbartonshire, where the average price of a house in the catchments for Bearsden Academy and Boclair Academy has risen by 37% over the last five years, from £219,097 in 2012 to £299,577 in 2017.