New data from Santander shows that parents wanting children to attend one of the top 500 state primary schools outside of London are hit with a 5% premium for home in the right catchment area.
In cash terms, parents must pay £21,215 more than the average price of a home in the same area.
Santander data suggests a shift in the priorities of UK homebuyers, with proximity to schools emerging as a critical factor for both men and women when purchasing a property. This surpasses other traditional considerations such as good transport links and closeness to friends and family, marking a notable trend in the housing market.
The school premium comes as Santander research reveals a significant increase in the number of parents willing to pay extra to secure their child a place in a top state primary school outside London.
Nearly two-thirds of parents (63%) said they have either paid or would pay extra to live within their desired catchment area, a substantial increase from 2019 when just a quarter (26%) of parents said they would be willing to pay extra. What’s more, nearly a fifth (18%) of parents would sell their home to move to their desired catchment area, up from 13% in 2019.
With parents on average reporting that they would be willing to pay 12% extra to live within the right catchment area, the current 5% premium might mean parents find the move more affordable than they had initially expected.
Graham Sellar, head of mortgage revelopment at Santander, comments: “It’s clear that nabbing a sought-after primary school place for your child is playing an increasingly significant role in the property market for parents. As a parent myself, I know only too well the sacrifices we make to support our children, and as our research shows, many start thinking about moving homes to secure a place at the right school even before the baby has been born.
“With almost a fifth of people up for taking the plunge and moving homes to secure their child a school place, it’s no wonder that this has created a sizeable ‘school catchment premium. However with parents willing to pay more than double the current premium to get into the area, along with prices remaining largely flat over the past 12 months and mortgage rates lower than last year’s highs, parents might find moving more affordable than initially expected.”
Santander research also reveals the lengths some parents are willing to go to secure their child’s school place:
• A quarter of parents (26%) start thinking about their child’s school either when they are expecting or when they have given birth;
• Parents on average are willing to relocate up to 25 miles to move to their preferred catchment area, similar to moving from Leeds to York. 10% of parents were willing to consider relocating over 40 miles, the equivalent of relocating from Birmingham to Leicester;
• 19% of parents said they are willing to have fewer or no holidays to afford the move, while 20% said they would also stretch their finances to make the move happen; and
• Securing a primary school place has a significant impact on parents’ mental wellbeing, with a fifth (20%) reporting they felt stressed about the situation and one in 10 (10%) unable to concentrate at work, while 10% also suffered from sleepless nights.