Schools & catchments
How much does a good school add to house prices?
6 min read · Updated June 2026
The school premium is one of the most documented effects in UK property. Buyers routinely pay more to live near highly rated schools — and the data confirms they do pay more. But the premium varies enormously depending on the school, the area, and the type of rating involved.
The figures below are drawn from research by Lloyds Bank, Savills, and academic studies using Land Registry data. They represent averages across many schools — individual premiums will be higher or lower depending on local supply, demand, and the specific school.
What the research shows
Outstanding primaries
Properties within the catchment of an Outstanding-rated primary school typically sell for 3–8% more than comparable properties just outside. In London and the South East, this premium can reach 10–15% for the most sought-after schools. On a £500,000 property, that's £25,000–£75,000.
Outstanding secondaries
Secondary school premiums tend to be larger — 5–12% on average, higher in competitive urban areas. Secondary catchments often cover a wider area than primary catchments, which can dilute the geographic concentration of the premium.
Grammar schools
Properties near grammar schools command 5–15% premiums, though this reflects area desirability as much as school access — proximity to a grammar doesn't guarantee admission. The premium is highest in fully selective areas like Kent and Buckinghamshire.
Good vs Outstanding
The premium difference between Good and Outstanding is smaller than most buyers assume — typically 2–4 percentage points. Many buyers pay a significant premium for Outstanding schools that, on reinspection, have since been rated Good.
Why the premium exists
The school premium compounds several effects:
- Willingness to pay — parents place high value on school quality and will stretch budgets to access it
- Constrained supply — catchment boundaries limit which properties qualify, creating scarcity
- Area correlation — good schools tend to be in areas that are desirable for other reasons too (safety, amenities, housing quality)
- Self-reinforcing demand — the premium attracts motivated buyers, who tend to be higher earners, which maintains area quality
When the premium is worth paying
The school premium is worth paying if:
- You have children who will actually use the school — paying a premium for school access you won't use is purely a bet on resale value
- The school's rating is current — an Outstanding rating from 2013 may no longer reflect the school's current quality
- You can confirm you will actually get a place — being inside the catchment and getting a place are different things at oversubscribed schools
- The premium is proportionate — paying 5% more for a genuinely excellent school is rational; paying 20% more is a stretch that requires the school to stay excellent for years
When the premium is a poor investment
- The Ofsted rating is old — over five years, treat it with significant caution
- You don't have children and are buying purely on resale value — the premium could shrink if the school's rating falls
- The catchment boundary is under pressure — a shrinking effective catchment reduces the number of properties that command the premium
- You're in a grammar school area but your child hasn't passed or won't sit the 11-plus — the premium doesn't buy access
How to assess the school premium on a specific property
Find three to five comparable properties — same type, size, and street — that are clearly outside the catchment of the school in question. Compare their sold prices to properties inside the catchment. The difference is the local school premium for that specific school.
Search any address on movegrid to see nearby schools alongside sold price history and EPC data — the tools you need to build this picture without visiting multiple sites.
The short version
- Outstanding primaries add 3–8% on average; Outstanding secondaries 5–12%; grammar school areas 5–15%
- The premium between Good and Outstanding is smaller than most buyers realise — typically 2–4 points
- Old Ofsted ratings (especially pre-2023 Outstanding grades) may not reflect current school quality
- The premium is only rational if you will use the school and can confirm you will get a place
- You can quantify the local premium yourself using sold price comparables inside and outside the catchment
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