Are school catchment area property premiums worth it?
Thursday, 05, Aug 2010 07:00Parents could be making a good investment by paying more for a house within the catchment area of a good school. The additional spending will be worth it if the location of a higher priced property improves the chances of children being admitted to a particular school, according to Mouseprice director Selwyn Lim. He advised parents that it is also worth considering the lifetime value of such an investment. Mr Lim explained: “That premium doesn’t actually sound like that much if that is to be spread across the entire schooling age of a child or 2.4 children [per family] on average. “It doesn’t translate to that much money per child per year if you divide it.” Earlier this week, Nationwide reported that parents are prepared to pay an extra 4.6 per cent (£8,670) for a property in a good school catchment area. A ten per cent pass rate in Sats also adds a 3.3 per cent premium to a property in a particular area.
