Do excellent schools, especially primary schools, affect the local property market in terms of demand from buyers and tenants to a property? Anecdotally, I have always known this to be the case, 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 mailing list and they confirmed that most people cite location as their number one factor.
After looking through our applicant list, it confirms there is a close correlation between the high demand areas of Milton Keynes and the close proximity to a good primary school. My team agreed that 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.
According to the School Guide website, Two Mile Ash School is one of the best primary schools in Milton Keynes. Its figures are certainly impressive. Their last Ofsted Report classified it as Outstanding, 95% of 11-year pupils achieving Level 4 or above in maths, reading and writing whilst 37% of them achieved level 5. There is also an excellent pupil/teacher ratio of 16:1. Finally, the schools’ KS2 rating was classed as Good.
Looking at property sales within half a mile of Two Mile Ash, property values have risen in value since 2000 by 142.53%, whilst according to the Land Registry, the Milton Keynes average as a whole has risen in the same time frame by 110%.
That means the parents of Two Mile Ash have seen the values of their properties rise proportionally 29.57% more than the Milton Keynes average ... interesting don’t you think?
However, whilst a good primary school significantly contributes more to house prices, the same can’t necessarily 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 and significantly more. However, great secondary schools will 'lock in' the local population who then need to stay in the area until their children have left school or sixth form, which means they make excellent long term tenants with a real reason to be invested in the area and more importantly, your rental property as their long term home during their children's secondary school career.
And the value of your Milton Keynes property versus the school catchment? Speak to me about the local schools reputation and 'on the ground' demand, but as long as you choose well, in the long term it’s safe as houses regardless. If you want to know more about how the right or wrong school catchment might affect you as a landlord, or you would like some impartial advice and guidance to get the best return on your investment, call me now on 01908 690700 or pop along and speak to me in person at our offices in Central Milton Keynes.
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