Primary school league tables dictate property prices

Student places at England’s best-performing primary schools are so coveted by parents that a home in the right catchment area can cost £19,500 more than in a similar area with a poorly performing school.

According to new research from Nationwide Building Society, a mere 10% rise in the number of 11-year-old pupils achieving a level four grade in their Key Stage 2 exams adds 3.3%, or £5,860, to the average house price.

In Yorkshire & Humberside the premium is at its highest, at 4.6% (£6,124), followed by the North of England 4.5% (£5,190) and London 3%, or £8,000.

The East Midlands and South West England are least affected with rises of 2.9% and 2.6% respectively.

Earlier this month, England’s Schools Adjudicator, Ian Craig, estimated that over 3,500 parents lied about residence on school application forms each year.

He advocated tougher action against parents who cheat the admissions process but stopped short of demanding that they face criminal charges.

In other UK property news from Nationwide, the building society recently said it expects further house price falls in 2010.

The lender’s chief executive, Graham Beale, warned: “The growth in house prices over recent months appears to be driven by lack of supply, and growth in unemployment throughout 2010 will inevitably exert downward pressure on house prices.”

However, Mr Beale went on to predict that interest rates will remain at their current level until “at least” the fourth quarter of 2010.

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