Good state school commands £16,000 property premium says Rics

Posted: 24 Nov 2006 10:28:09 GMT

Being in the catchement area for a well-rated state school will add up to £16,000 to the value of property, Royal Institution of Chartered Surveyors (Rics) research has shown

Being in the catchement area for a well-rated state school will add up to £16,000 to the value of property, Royal Institution of Chartered Surveyors (Rics) research has shown.

This is the average equivalent of eight per cent of property value said Rics.

"A secondary school with a good reputation can cause mayhem in a local property market," said Rics spokesman Jeremy Leaf.

"It is quite normal for potential buyers to check the local Ofsted reports before they read the particulars for their preferred properties.

This appears to be a glass ceiling on the value of schooling however, with the £16,000 figure unchanged since 2003 when it represented 12 per cent of property value.

Rics warned that paying the premium for property in catchement areas could prove an unreliable investment, however.

"Catchment areas are liable to expand or shrink according to the school's popularity," it said.

"If buyers pay a premium to live within the catchment area of a school when they sell their property it may not command a similar or greater premium."

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