I was having a chat with an Oakwood property investor the other day, when he asked if schools, especially primary schools, affected the local property market in terms of demand from buyers and tenants to a property. Anecdotally, I have always known this to be true, a good school creates good demand and good demand does affect house prices. So, I asked my colleagues on the front line, who take the phone calls from people putting themselves on our database and they confirmed that most people cite location as their number one factor.
After looking through our database, it confirms there is a close correlation between the high demand areas of Oakwood and the close proximity to a good primary school. Talking to my team in a recent morning meeting, they agreed many people would look to increase their budget quite significantly, whilst others would consider downgrading their property requirements to be close to a good primary school.
Those of you who regularly read this blog will know I like a challenge, so I decided to look at the science behind these assumptions. According to the School Guide website, The Merryhills School is one of the best primary schools in the Borough of Enfield. Its figures are certainly impressive. In Key Stage 1 (KS 1) the score for reading was 83% (up 4% from the previous year and 7% above the National Average). In writing the score was 78% (10% up from the previous year and 10 % above the National Average). In mathematics the score was 80% (5% above the National Average) There is also a great pupil/teacher ratio of 30:1. Finally, the schools’ Key Stage 2 rating was 78% for reading, (7% above the National Average), writing at 86% (up 10% from the National Average) and Mathematics 87% (12% above the National Average). These statistics give Merryhills a combined score of 72% attainment in reading, writing and mathematics which is 11% above the National Average.
Source-(Merryhills School Website)
Looking at property sales within half a mile of Merryhills, property values have risen since 2003 by 206.67%, whilst according to the Land Registry, the Oakwood average as a whole has risen in the same time frame by 163.19%.
That means the parents of Merryhills School have seen the values of their properties rise proportionally 43.48% more than the Oakwood average … interesting don’t you think?
The graph below illustrates the price paid differential between the average price paid for the area compared to the average price paid for the catchment.
(Source – Land Registry)
However, whilst a good primary school significantly contributes more to house prices, the same can’t be said for secondary schools. There are two reasons for this, firstly, as secondary schools are much larger, so their catchment areas are correspondingly much larger, meaning parents don’t need to live so close to the school. Secondly, in the UK, whilst the difference between the top 25% and bottom 25% of secondary schools is not insignificant, in the primary school sector, the difference between the top 25% and bottom 25%, according to the London School of Economics, is considerably more.
Many other Oakwood landlords, both who are with us and many who are with other Oakwood agents, like to ring/email us to discuss the Oakwood property market, to consider how Oakwood compares with its closest rivals and hopefully we can answer all their questions. You must take lots of advice and seek out the best opinion. One good source of opinion, specific to the Oakwood property market is the Oakwood Property Blog www.oakwoodpropertyblog.co.uk I don’t bite, I don’t do hard sell, and I will just give you my honest and straight talking opinion, give us a call on 0208 366 9777 or drop me a line [email protected]