Why you should invest in a property near an outstanding school

Why you should invest in a property near an outstanding school

Every year thousands of parents wait anxiously to hear which school their child has been offered. With this desperation comes a huge demand for properties within the school catchment areas. And with this increasing demand comes premium prices and rent. If you are thinking of purchasing a buy-to-let or an investment property, buying a house that sits in the catchment area of an excellent school could be a very profitable decision.

Santander Bank recently conducted a survey that highlighted the length that some parents will go to, to ensure their children get into the best schools. ¼ of all UK parents had rented or bought a property just to be within the catchment of certain schools. The survey also stated that parents are likely to pay 11% more to buy a home within a specific catchment area, making properties in such areas a fantastic investment opportunity. A similar survey carried out by Lloyds suggested that some parents are actually willing to spend an extra £50,000 to live in certain school catchment areas.

17% of parents had even left their job to make the move and more than 20% chose to downsize. Plus, many families opt to move out of large cities such as London to smaller cities and towns, where the property market and local schools offer more choice. It was also revealed that half of the 4,000 people surveyed had sold their previous property to move, a third opted to buy a second home and a fifth chose to rent.

It’s not uncommon for large families to leave their big houses in return for smaller, terrace properties, situated close to a good public school. Nowadays, parents will rent or buy whatever they can within the school boundary, which although it leads to a distorted market, is wonderful news for landlords in the local area.

These statistics clearly indicate that for a lot of parents, finding a property that is within close proximity of a good school is a huge must. So, if you’re looking to invest in property, choosing one in such areas is a great idea. Why not check out the top 30 schools in the league table and look for schools in these postcodes? According to Lloyds, property prices in the postcodes around the top 30 schools average at 17% higher compared to the national average.

Competition to get into two top schools in Clifford, near Leeds is so fierce that some prospective tenants are forced to send testimonials and argue as to why they should rent the chosen property. School catchment area is the most popular motivation for moving. In addition to this, Escrick, Tadcaster, and Saxton also see similar competition, with some families renting a property as well as paying their monthly mortgage on a separate property just to get their child into one of the area’s schools.

Naturally, there is often a premium to pay as competition in these areas is fierce. Estate agents have seen young families planning ahead, discussing where they want their kids to go to school. Many young couples are even making this choice before even having children. There is also evidence to suggest that as soon as a school loses its exceptional OFSTED rating, house prices and popularity of the local area are affected.

Rentonomy.com, a website for landlords and tenants has stated that properties near top schools rent for around £50 extra a week. PrimeLocation also calculates that rental prices are 7.8% higher in top 50 school locations compared to the rest of the UK. Data also shows that house prices are also 35% higher so landlords need to think about whether rental income would outweigh the buying cost.

Looking to invest in property near a good school? Call Cassini Properties Estate and Lettings today for more information.