Postcode Premiums – The Impact of School Catchments on Property Prices

Confirming what we have long since known, recent research shows that property prices in Scotland are considerably higher around the best local authority schools. This means that anyone looking to buy a home in one of the most desirable catchment areas will likely pay a premium upwards of £80,000 above the average Scottish property price. This signifies a 58-68% price difference for properties around the country’s top 20 state secondary schools, and a 26% rise over the past four years alone.

The ‘postcode premium’, as it’s often referred to, is something we’ve always been aware of, having worked in the Scottish estate and letting market for over 30 years. It has a huge impact on the prices we set for the homes we sell, and it is a key factor for many of our clients who have school-aged children or are planning to start a family in their next home.

In addition to top state schooling, these property hotspots almost always boast excellent commuter links and local amenities that appeal to buyers with children. Whilst it may cost considerably more to purchase property in these areas, it’s also worth remembering that homes in desirable school catchments are far more likely to hold their value because they are rarely impacted by falling property prices to the same degree as compatible residential properties in other areas.

School catchment hotspots

In Scotland, East Renfrewshire is home to the highest number of top-performing local authority schools, as well as being in close proximity to many private schools. Glasgow and Dunbartonshire each have two leading state school catchment areas. The most significant increases in property prices around Scotland’s top 20 schools have been in East Dunbartonshire—in the catchments for Boclair and Bearsden Academies, the average price of a house has risen by 45% between 2011 and 2016. In Edinburgh, parents continue to pay the most to live in specific catchments—St Thomas of Aquin’s High School, for example, attracts a premium of £145,022 above the average property price in the capital.

Larry Flanagan, general secretary of the Educational Institute of Scotland (EIS) teachers’ union says: “There is a perception that because a school is in an affluent catchment that somehow that school becomes a good school because of that. In actual fact those people who are paying the £80,000 are also in a position to pay for tutors. They live in houses with space for homework and they have all the IT. In a sense it reflects the fact that if you come from an affluent background your chances of doing well at school increases in a whole range of ways.”

This is something to bear in mind if you’re not in a position to buy a home in your ideal catchment area. It doesn’t mean that your children’s education will suffer – we have an excellent education system in Scotland and there are many fantastic state schools and private schools around the country. Responding to the reports, a Scottish Government spokesman said: “There are good schools and good teachers right across Scotland but raising the bar for all and closing the attainment gap – opening up opportunity for every child – is the number one priority of the Scottish Government.”

If you are able to purchase a property in one of Scotland’s top catchment areas, however, it’s a safe investment for your money, so there’s no need to worry about losing out on capital gains in the long run if you’re hoping to sell once your children have left home. If, on the other hand, you’re thinking about selling your home in one of the country’s school catchment hotspots, this is an opportune time to do so. It’s not just in the springtime and early summer that parents are looking to move—we’re in the midst of a sellers’ market in Scotland, and being in the catchment for a top state school is one of the biggest considerations of buyers with children, so there is no bad time to sell if you own a property in one of these areas or, indeed, anywhere across the country.

Clyde Property is a leading independent, multiple award winning estate and letting agent with 30 years’ experience in selling and letting property in Scotland. Just call your local Clyde Property branch today, for friendly, impartial advice on finding your next dream home.