Labour’s VAT raid on private schools has led to a notable rise in the number of large family homes coming to the market as parents plan to move home to an area with good state schools or even work abroad to free up cash for school fees, according to Winkworth.
Dominic Agace, chief executive of Winkworth, revealed the impact of the tax change in the latest episode of the Property Exchange podcast.
He said: “ Since VAT was imposed on school fees, the mid-market home has never been more popular as people move to less expensive areas to afford the fees or decide to move within the catchment area of good state schools. Our offices are reporting enormous interest and are seeing sealed bids. The larger, more expensive houses are not attracting the buyers, as they once did.
“We are also seeing people are moving abroad to work to places where they pay less tax to offset the tax increases on school fees they have already committed to for their children.”
Melanie Sanderson, managing editor, The Good Schools Guide urges parents to do their homework when considering a move to a new area to be close to good state schools.
She told the podcast: “Parents are finding ways to make it work but what the next generation of young parents coming through the system will do is when we will really feel the impact.”
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