Finance

The Ofsted effect: How a good school can drive up house prices

A new study from Barratt London which analysed official Ofsted data for the capital's primary and secondary schools, found a correlation between performance and local house prices.

Warren Lewis
|
12th September 2018
school

A new study from Barratt London which analysed official Ofsted data for the capital's primary and secondary schools, found a correlation between performance and local house prices.

According to the report, there is an average and consistent property price drop of £87,127 from each Ofsted rated outstanding bracket – something to consider before committing to such a significant investment.

As the table below indicates, the higher the percentage of Ofsted rated outstanding schools in a borough, the higher the average property price.

 

Ofsted Outstanding (%)

Average House Prices (May 2018)

Difference in Property Prices

Number of Boroughs in bracket

60+

£1,326,653

-

1

40-49

£592,140

£734,513*

5

30-39

£517,120

£75,020

13

20-29

£466,934

£50,186

10

10-19

£330,758

£136,176

3

AVERAGE

-

£87,127

-

So where is the best value place to live?

While Kensington and Chelsea are home to the highest rated schools with not one school in the borough deemed to ‘require improvement’ or be ‘inadequate’, this performance does come at a cost - a staggering £1,326,653 on average.

Furthermore, the chances of earning a place in the school of your choice are slim – just 68.4% for primary schools and 54.3% for secondary schools.
Taking into consideration Ofsted ratings, the likelihood of receiving your first choice and average house prices, the best value borough for education comes out as Harrow.

In Harrow 47.5% of all schools are deemed outstanding by Ofsted (third highest in the dataset). It also offers a much higher chance of getting the school you want – there’s an 85.5% chance of getting into the first preference for primary schools, and 69% for secondary schools.

Plus, average house prices in this borough are far more affordable (£468,464). This all combines to make it a great value borough to set down roots for the future.

Region

Borough

Ofsted Outstanding %

First Choice (Primary) %

First Choice (Secondary)%

House Prices (May 2018)

Inner London

Kensington and Chelsea

61.5

68.4

54.3

£1,326,653

Outer London

Richmond upon Thames

49.1

88

61.8

£670,655

Outer London

Harrow

47.5

85.5

69

£468,464

Inner London

Wandsworth

42.9

76.9

56.9

£605,295

Inner London

Lambeth

42.7

84.2

55.2

£503,273

Inner London

Hammersmith and Fulham

42.6

76.6

51.4

£713,014

Outer London

Kingston upon Thames

39.2

82.7

69

£495,357

Inner London

Tower Hamlets

38.0

89.2

71

£483,069

Outer London

Barnet

37.4

84.1

67.6

£546,309

Outer London

Redbridge

36.8

88

66.9

£421,641

Related articles
More from Finance
Latest from Financial Reporter
Latest from Commercial Reporter