I was having a chat with a Bingham 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 looked at 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 mailing list, it confirms there is a close correlation between the high demand areas in Bingham 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 SchoolGuide website, Carnarvon Primary School is one of the best primary schools in Bingham. Its figures are certainly impressive. Their last Ofsted Report classified it as Outstanding, 97% of 11 year old pupils achieving Level 4 or above in maths, reading and writing whilst 25% of them achieved level 5. Finally, the schools’ KS2 rating was classed as Good.
Looking at property sales within a mile of Carnarvon Primary, property values have risen in value since 1999 by 144.04%, whilst according to recent figures, the Bingham average as a whole has risen in the same time frame by 116.32%.
That means the parents of Carnarvon Primary have seen the values of their properties rise proportionally 23.83% more than the Bingham average ... interesting don’t you think?
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 and significantly more.
Many other Bingham landlords, both who are with us and many who are with other Bingham agents, like to pop in, ring or email us to discuss the Bingham property market, to consider how Bingham 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 and I will just give you my honest and straight talking opinion.