A new report from lender Santander UK finds that many parent will go to serious financial lengths to get their children into the best schools, including paying premiums on a new property.
The survey of 2,000 UK parents with children aged up to 18-years-old shows that many are willing to pay 15% premium on properties within catchment areas of top schools, despite the chances of creating financial and emotional strain.
The summary of the findings is
- Three quarters (73%) of those surveyed say they’d be willing to pay extra to live within the desired catchment area of a top school, up from 63% in Santander’s report from last summer
- On average, parents who are willing to move would move over 30 miles to be closer to the best primary and secondary schools in the UK
- Competition looks set to increase as a fifth (21%) of private school parents plan to move their child to a state school due to higher fees
- Pressure over competition for school places see parents losing sleep – and even friends – with a third considering homeschooling because of it
The average price premium parents would be willing to pay is 15% – equating to a further £43,500 on a £290,000 property (the current UK average house price according to the Office for National Statistics). One in 10 would go as far as far as paying an over 25% extra.
Parents would also be willing to uproot and move an average of 31 miles to bag a place in a top-tier school, some nine miles further than a year ago.
However, many parents may find that straining for the price premium is not enough. Santander analysed the top 50 primary and top 50 secondary schools in the UK and found the average price of a home to be £538,490 – 42% higher than the average house price in the UK (£379,517 according to Rightmove).
David Morris, head of homes at Santander, said: “Competition amongst parents to get their child into their top choice primary or secondary school is fierce and it’s clear that this is taking a significant toll on families. Parents are understandably digging deep into their financial and emotional reserves to give their children a great education. There is good news for parents however, as a record number of properties coming to the market, combined with stabilising interest rates and improved affordability, will hopefully help some of them bag an outstanding home in their dream catchment area.”
Stresses and strains
Nearly a quarter of those surveyed (24%) say it has made them feel like they need to earn more money and that the financial worries are only part of the problem. Three in ten (29%) have lost friends in the fierce competition for a place in a top school and one in six (15%) have had sleepless nights or argued with a their partner or family (14%). A third (33%), say the stress of not getting the desired catchment led to them considering home schooling.
The bite of higher private school fees
Santander’s findings report that the competition for state school places has worsened since the government introduced VAT to private school fees.
21% of parents whose children are currently at private school say they have plans to move them to a state school due to higher fees. Of this group, over two-thirds (69%) say they will relocate to get their children into the best state school catchments.
As a result, parents who had their eyes set on a state school are reporting added concerns for the future, with almost half (46%) saying they are worried that they will now have to compete with those whose children will no longer be at a private school.
