Study finds parents stretching finances and relocating to secure properties in top catchment areas
Nearly three-quarters of parents in the UK are prepared to spend more on a property located within the catchment area of a well-regarded school, according to new research by Santander UK.
The proportion of parents willing to pay a premium for such homes has increased by 11% in the past year, reaching 73%.
The study found that, on average, parents are willing to pay a 15% premium to secure a property in the catchment area of a preferred school. Based on the average UK house price of £270,000, this equates to an additional £40,500. Around one in 10 parents said they would pay up to 25% more, or as much as £67,500 above the average price.
Parents are also prepared to relocate significant distances, with the average respondent willing to move 31 miles to access a top school—nine miles further than last year. The report noted that properties in the catchment areas of the top 50 primary and top 50 secondary schools are priced at an average of £538,490, which is 42% higher than the UK average.
The research also highlighted the pressures families face in securing school places. One in four parents said the process made them feel they should increase their income. Nearly a third reported losing friendships due to competition for school places, while one in six experienced sleepless nights or arguments with family members. A third of respondents said the stress of not being in the desired catchment area led them to consider home schooling.
The introduction of VAT on private school fees was also identified as a source of stress. More than 20% of parents with children in private education said they plan to move them to state schools because of rising costs. Of those, over two-thirds intend to relocate to be within the catchment area of a leading state school.
This shift has created additional concerns among parents already targeting state schools. Nearly half expressed worry about increased competition for places as families move away from private education.
The findings also have implications for mortgage brokers, who may see more clients seeking larger loans or advice on affordability as families stretch finances to secure homes in desirable catchment areas. Brokers are likely to play a key role in guiding clients through complex decisions and identifying suitable mortgage products for these scenarios.
“Competition among 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,” said David Morris, head of homes at Santander. “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.”
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