The state school property boom: As experts say, move now before Labor abolishes VAT on school fees – use our interactive guide to prices near every ‘open’ secondary school

Home prices in areas close to the country’s top state schools are on the cusp of a boom, real estate experts predict.

Estate agents are already receiving calls from parents wanting to move within the catchment area of ​​good state schools in the run-up to the general election.

That’s because Labor has confirmed it would impose VAT on private school fees if it wins, raising the cost of private education by an extra 20 per cent as early as September.

According to research by education consultancy Baines Cutler, around 224,000 students currently attending private schools could eventually switch to the state sector because parents can no longer afford fees.

Property experts have told the Mail how and when they expect house prices to move in the catchment area of ​​England’s top schools.

The Mail has also compiled a definitive list of every school in England rated outstanding by Ofsted, as well as current rents and house prices in the surrounding areas.

Search our interactive list below of all the excellent schools in England and property prices nearby

Home prices in these neighborhoods are expected to rise in coming years as families who can no longer afford private school try to move within the catchment area of ​​good state schools, experts say.

Likewise, rental prices in these areas will also increase as competition increases.

Many parents are likely to look at the best state schools, but will need to ensure these are within their catchment area before their children are admitted.

The effect on house prices in catchment areas where public schools are rated ‘outstanding’ by Ofsted would be dramatic, estate agents say.

Aneisha Beveridge, head of research at estate agency Hamptons, said: ‘There has always been a close link between the quality of schools and the local housing market. The proximity to top-level state schools is a strong draw for families keen to provide the best education for their children, which in turn has driven up house prices in the catchment areas.

‘With Labor so far ahead in the polls, we are likely to see more moves like this in 2024 as families try to get ahead of any future policy.’

Last year, 44 per cent of homes in the same postcode as a top secondary school sold following a bidding war after receiving offers from three or more buyers, Hamptons figures calculated for Mail Plus show.

Properties near top state schools have also defied wider price falls.

Last year, the average cost of a detached home near an excellent high school rose 3.6 percent year-on-year, outperforming the rest of the market.

The prices of detached homes in the vicinity of a school assessed as ‘insufficient’ fell by 1.2 percent in the same period.

Houses near excellent secondary schools cost an average of £540,350, representing an 8.1 per cent premium over the wider local authority average of £499,790.

More than one in ten – 12 per cent – ​​of detached homes near an excellent secondary school now cost well over £1 million, the highest rate ever recorded and up from just 3 per cent ten years ago.

Edward Heaton, founder of estate agency Heaton & Partners, which has offices in the south of England, says he has already had calls from parents wanting to move ‘because they cannot afford an increase in school fees’.

“But with all the other higher costs they have had to bear in recent years, it is the hard-working plumbers or entrepreneurs whose children will suffer, not the wealthy bankers and their even wealthier clients,” he adds.

Henry Pryor, a buyer’s agent and property expert, said there will “certainly” be an impact on house prices in some catchment areas, but said it would have to be “very localized”.

“There will be parents who spend more than the VAT increase to get the right address, but they will probably get it back when they sell,” he adds.

Tom Bill, head of UK residential research at Knight Frank, says buyers are already more proactively targeting the catchment areas of the best public schools, ahead of the VAT changes.

He says: ‘Any premium that currently exists, and which is usually more noticeable around primary schools, could therefore be higher.’

Can moving within the catchment area of ​​a good public school save you money?

Some parents may be willing to pay a premium for a home near a good public school, as this would still save them more money than if they chose a private school after sales tax has been added.

Private school fees average around £18,000 for day pupils. With VAT that could be closer to €21,600. That would equate to around £151,000 for one child over seven years.

Jennie Hancock, director of West Sussex Estate Agents Property Acquisitions, says: ‘Those with young children will look at the extra costs and decide it is best to invest some of the money they would have spent on private education into the purchase of a house in the catchment area. of good primary and secondary condition.

“Even if they pay a premium of 15 to 20 percent, they can make significant savings overall.”

She adds that the real impact of higher school fees on the housing market will not be felt until 2025/2026 and the decade beyond.

“Protecting children’s education from disruption is one of the most important considerations for any parent,” she says.

“There are certainly thousands of families who are stretching financially to afford private education, but I expect that many will be willing to commit whatever financial resources are necessary to ensure that their children can remain in residence for as long as possible.

‘That could mean extending the term of the mortgage, going interest-only, or asking grandparents for help.’

For those who are genuinely concerned and thinking about moving, now is a good time, says Bruce King, director of Saffron Walden-based estate agent Cheffins.

“With interest rates stabilizing and inflation declining, there is confidence in the market, and we don’t expect the election to have a huge impact on prices,” he says.

Marc Schneiderman, director of central London estate agent Arlington Residential, says homeowners who live in the catchment area of ​​good schools can make good returns by selling if they don’t have school applications on the horizon.

“We are already receiving calls from concerned parents who believe they will not be able to cover the extra costs and are therefore looking for property in the catchment areas of some of London’s best public schools,” he says.

“It’s definitely a good time to sell in those areas. Without exception, every property we have sold in the last three months has had offers from more than one buyer.”