How the right school can add £21,000 to your home

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Do you have a good school close to where you live? If so, you could be sitting on a gold mine.Finances

Living in a home with a good state secondary nearby school adds an average of £21,000 to its value when compared to local house prices.

Parents and investors are willing to pay £268,000 for a property that’s near one of the top 30 state schools in England. That compares with an average of £247,000 in the rest of the country, based on figures from the Land Registry.

Beaconsfield wins

Figures showed that the school which seemed to add the most to local house prices was Beaconsfield High School in Hertfordshire.

As three-quarters of pupils at the school achieved recent grades of at A or A*, it’s a highly desirable place to get your child in to.

These results, coupled with the fact that highly-desirable Beaconsfield is prime commuter belt territory for London and the City, means that the average price of a property near to the school is a whopping £797,000.

This equates to over 18 times the average salary of someone working locally, as opposed to in London.

South-east most competitive

As you perhaps might expect, the competition in the most densely populated, as well as economically successful part of the country, the South East, is where competition for homes near good schools is at its most intense.

In the home counties and London, properties near to the top 10 state schools cost an average of £72,314, or 27%, more than the average in each county the schools are in.

It’s not just down south

London and the home counties don’t have a complete monopoly on crazy house prices near the best schools however. On an individual school basis, coming in at number two and three were Bishop Vesey’s grammar school in the West Midlands, and Clitheroe Royal grammar school in Lancashire.

For a home near these schools you would have to pay £131,656 and £85,857 above the average for the county respectively.

Hope for parents where prices are low

Yet there’s still hope for parents who can’t afford a more expensive house, or to pay the good-school premium.

Research by Lloyds’ showed that it’s still possible to buy a home in an area with relatively low house prices which is still near a good school

Heckmondwike grammar school, in West Yorkshire, is in the top 30 national state schools for England, but the average price of a property nearby is just £99,000.

House prices and home insurance

Fortunately, there’s no correlation between house prices and the cost of home insurance

Many people assume that their buildings and contents cover is related to the value of their property on the open market.

But this isn’t the case. When working out how much to insure your property for, it’s the cost of re-building it from scratch that has to be taken into account.

And remember that the total contents cover you need should be based on the cost of replacing the things you own if you bought them new; not forgetting that individual items typically worth £1,500 or more should be specified to an insurer.

Policy Expert

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The views expressed here are solely those of the author and do not necessarily reflect the views of Policy Expert.