Homes costing £120,000 more near top schools

PARENTS have to pay almost £73,000 more on average to buy a home near Scotland’s best performing schools, say researchers.

That premium rises to more than £120,000 in the catchment areas for four state schools.

Property prices have reached an average of £277,134 in the areas around the country’s 20 highestrated secondary schools, a survey shows.

That leaves buyers spending on average 36 per cent more than if they were buying a property elsewhere in the same local authority area – a difference of £72,973.

The premium paid to live near a prestigious school has increased from £41,441 last year, the study by Bank of Scotland indicates.

The rise was due to a number of new schools in areas where property is relatively expensive, the report authors said.

In Edinburgh’s EH9 postcode, where children qualify to attend James Gillespie’s High, the premium is calculated at £173,783. In that area of the capital’s South Side, house prices have jumped from an average of £271,020 only five years ago to £424,647 today.

Graham Blair, mortgages director at Bank of Scotland, said parents should double-check their figures before committing to paying a huge premium, as homes in a ‘good’ school area could become less attractive if exam results dip.

Buying in a local authority area with multiple top-performing schools would make more sense, he argued. Mr Blair added: ‘They may benefit more from buying in an area where the schools are consistently in the top 20 but house prices trade at more of a discount.’

The bank looked at the top 20 schools where pupils achieved five or more Highers at SCQF (Scottish Credit and Qualifications Framework) at Level 6 or better.

Top of the list was Jordanhill School in Glasgow, which is not funded by a local authority but by direct grant from the Scottish Government. The average house price in its qualifying area rose from £110,018 in 2013 to £165,082 this year.

The bank’s table shows Jordanhill pupils achieving the top marks, with 75 per cent of pupils achieving five or more Highers.

But the school’s roll of 590 is almost a quarter of the 1,802 pupils at St Ninian’s High in Giffnock, East Renfrewshire, which had a 68.6 per cent exam rate.

It is one of three East Renfrewshire schools which are among the top five schools.

In cash terms, there are now four schools in postal areas with a premium of more than £120,000, compared to only one last year.

These are Hyndland Secondary School, Glasgow (£121,090), Cults Academy, Aberdeen (£121,205) James Gillespie’s (£173,783) and Boroughmuir High School in Edinburgh (£137,801).

Jamie Osborne of estate agent Rettie’s Glasgow office said: ‘Properties within popular catchments have always commanded a premium price.

‘We are even seeing more couples moving to secure a place for their child given the competition and capacity some of these schools are operating.’

It is believed top state schools are becoming more attractive to parents who might otherwise choose a private school.

From 2020, the Scottish Government is scrapping £5million of business rates relief for independent schools, forcing up fees.

‘Secure a place for their child’