In addition, higher mortgage rates have pushed buyers out of London, according to estate agency Hamptons. Homeowners ditched the city to buy 33,000 homes in other parts of the country during the first half of 2024, and the trend is expected to continue.
The proportion of parents who are willing to pay more for a house in the right location has risen significantly to two-thirds from just a quarter five years ago, Santander added.
Furthermore, just under a fifth of parents (18pc) would sell their current home to move to their desired catchment area, up from 13pc five years ago.
However, while on average parents said they would be prepared to pay up to 12pc more to get into their right area for schools, the average premium of 5pc means a move may be more affordable than many realise.
Graham Sellar, at Santander, said: “It’s clear that nabbing a sought-after primary school place for your child is playing an increasingly significant role in the property market for parents.
“With almost a fifth of people up for taking the plunge and moving homes to secure their child a school place, it’s no wonder that this has created a sizeable school catchment premium.
“However, with parents willing to pay more than double the current premium to get into the area, along with prices remaining largely flat over the past 12 months and mortgage rates lower than last year’s highs, parents might find moving more affordable than initially expected.”
It is not just homes near good state schools that are likely to see their values impacted by Labour’s raid on private schools. The move is also expected to increase house prices in areas near to good grammar schools.
Parents already face an additional £200,000 for houses close to selective state schools compared to others in the same postcode, according to data firm Outra. However, this premium is set to rise further as parents move closer to grammar schools in the hope of avoiding increased school fees.
Philip Harvey of estate agency Property Vision, said: “Grammar schools will have a wider catchment area [than state schools] and families will have more money as a result of not having to pay school fees. Housing prices near grammar schools are going to go up.”
