Why good local schools increase the value of Richmond homes
We’ve heard plenty about the ‘Waitrose effect’ and the ‘Crossrail effect’ in recent years, but what about the Ofsted effect?
According to a new study from housebuilder Barratt London, there is a close correlation between London house prices and Ofsted ratings.
Using official Ofsted data for London’s primary and secondary schools, the research grouped together the capital’s boroughs by their percentage of schools rated outstanding. It found that for every 10% increase in the number of ‘Outstanding’ schools, property prices rose by an average of more than £87,000.
It’s also the case that the higher the percentage of Ofsted rated outstanding schools in a borough, the higher the average property price.
Richmond upon Thames scores highly on education
The research found that Richmond upon Thames is the borough with the second highest average Ofsted rating in London, with nearly half of all primary and secondary schools (49.1%) rated as Outstanding. Only Kensington and Chelsea, where 61.5% of schools are rated Outstanding, was superior.
However, Richmond upon Thames benefits from being more affordable than Kensington and Chelsea, with an average house price of £670,000 compared to £1.3 million. The lower average price is likely to encourage more buyers to put down roots in the area, as will the excellent prospects of getting a child into their first-choice primary school. There is an 88% chance of parents getting their offspring into their first preference primary school, which again compares favourably to Kensington and Chelsea, where only 68.4% manage it.
While this falls for secondary schools – only 61.8% get into their first choice secondary school in Richmond upon Thames – the fact that most are good or outstanding means the chances of a child being in a well-performing establishment are high. Of the ten schools in the borough, only two have Ofsted ratings of Requires Improvement, while the others are Good, Outstanding or (in the case of two) new schools that haven’t yet received an Ofsted inspection.
The top place for KS2
Richmond upon Thames came out on top when the number of KS2 pupils performing to the expected standard was analysed (82%), while it was the fourth best borough for KS4 results. Some 57.7% of pupils achieved a strong 9-5 pass, while 76.1% achieved a strong 9-4 pass.
In total, Richmond upon Thames is home to 45 primary schools with 18,925 places, while the 10 secondary schools hold over 10,200 places. An impressive 49.1% have been deemed outstanding, while 40.4% are good and only 8.8% need improvement.
In other words, from a local schools point of view, Richmond upon Thames is likely to be very attractive to buyers with school-age children. Being in Outer London, too, means prices are more affordable, a family-friendly, community-led vibe is on offer, green space is plentiful and there are an excellent array of independent shops, restaurants, cafes and boutiques in the area.
So, if you are selling a family home in Richmond upon Thames, you should feel confident about strong demand and achieving a good price for your property.
Parents willing to pay a premium
It’s been known for some time that demand from parents for the best schools in a given area can provide a considerable uplift to house prices. Research carried out by Santander Mortgages in 2017 revealed that house prices in desirable locations were being pushed up by nearly £27,000 thanks to parents determined to secure a place for their child at their preferred school.
It found that parents were willing to pay an extra 12% on top of the market value for a home if it was in the right catchment area, while one in four parents either purchased or rented a new home to ensure they were in a particular catchment area.
A third bought a second home, half sold up to move elsewhere and a fifth chose to rent a home in a desirable catchment area, while 25% of parents said they had overstretched themselves on their mortgage.
This research was backed up with further findings from Santander this August, which highlighted that parents hell-bent on getting their children into one of the country’s top state schools are willing to pay tens of thousands of pounds more to live in the right catchment area.
The catchment area premium was at its highest in London, where parents pay an average of 15% (£70,675) more to live in the vicinity of their child’s first-choice school – comfortably more than anywhere else in the UK.
The findings also showed they are willing to make sacrifices, with 24% taking on extra hours at work, 20% downsizing their home, 25% witnessing their commuting costs rise and 17% saying their journey to work had now been made more difficult.
A clear correlation
As we can see, there is a clear link between the performance of local schools and average property prices. If an area is home to good or outstanding schools – as Richmond upon Thames is – then the demand from parents is likely to be high. This, in turn, increases your chances as a seller of achieving a quick, hassle-free sale.
You’re also likely to be able to command a premium, given the lengths parents are willing to go to live in their desired catchment area.
For more information about selling your property in Richmond, Sheen, Mortlake and Putney, please get in touch with Parkgate Estates on 02089402991, where our tailored marketing, hands-on approach and attention to detail can help you to get your home sold for the best possible price.
To find out how much your home could be worth in the current marketplace, you can request a free and instant online valuation.