With the holiday season coming to a close, the attention of families in today’s property market is swiftly turning from summer vacation to the new school term. With this change in mind, families with children - or tenants considering starting a family - are reminded of the importance of living close by to great schools.
Living within close proximity to good schools has always been an important factor for tenants. However, with the cost of living in London at an all-time high and fierce competition between families to get their children in to the best schools, the Home Counties have seen increased numbers of London-based families looking to move to pasture’s new – increasing demand for suitable family homes.
With families drawn to the South East by the quality and choice of schools available here, landlords with properties to let near to well-renowned schools are in a great position, as a recent study by the Department of Education found that rental prices are 8% higher near the best-performing primary schools and 6.8% higher near the best secondary schools of an area. Santander also confirmed that one in four parents have deliberately rented a property in order to secure their child a place at their local school of choice, with 5% of those people claiming to have never even moved in to their new home.
Recent research conducted by Land Registry reported that properties located within one mile – or a 10 minute walk – of a school rated ‘outstanding’ by Ofsted, since the beginning of 2017, have sold for 20% more than properties within one mile of poorer-performing schools across England (excluding London) – equating to an average premium of £47,000. With this research in mind, prospective landlords thinking of investing in family-orientated areas could well benefit from a higher percentage of capital growth than in areas where families are required to travel further afield for good schooling, netting both greater, more consistent rental yields and longer term financial reward.
Allison Thompson, Leaders’ Managing Director of Lettings South commented, “With an increasing number of schools scaling back their catchment areas, it is clear to see that rental properties close to ‘outstanding’ schools are in higher demand now than ever before. What’s more, families who do choose to rent while their children are at school tend to stay for several years, so the demand from prospective tenants to find a family home within catchment of their chosen school is on the rise – great news for landlords targeting this market.”
If you’d like to establish the value of your rental property, or are thinking of investing in an area close to a top-performing school, contact your local Leaders branch today for further information.