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MAIL ON SUNDAY - property prices / good state schools

Journalist: Sarah Davidson, Freelance

ended 29. May 2024

Hi there 

 

This is a SUPER tight deadline – I need everything back by the end of today please! 

 

Looking for comment from estate agents on the effect that Labour’s pledge to axe tax breaks for private schools, particularly the addition of VAT to fees, will have on local property markets. 

 

I need written responses please AND if any buyers / sellers are prepared to talk to me and be named and pictured PLEASE put them in touch with me asap. 

 

  1. What effect does being in the catchment area for the best state schools currently have on house prices?
  2. What do you expect to happen if parents have to start paying 20% on top of school fees?
  3. Is it a good time to sell in those areas? Why/not?
  4. How long do you think it’ll take for it to start to show in property values? 
  5. Are you seeing much competition from buyers in those areas? 
  6. When should parents worried about affording private schools after this think about moving? 
  7. How big an effect could this change have on house prices? 
  8. Are there any areas you think will really benefit from the change – specific places please? 
  9. Do expect to see more homes come onto the market as people look to cash in? 
  10. Will there be any change at all – or is the value already baked in in good catchment areas?
  11. What are your buyers and sellers feeling about it?

All anecdotal comments welcome – no need to answer all Qs.

THANKS!

3 responses from the Newspage community

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Kundan Bhaduri
Property Developer and Portfolio Landlord at The Kushman Group
In our experience, top state schools currently add a significant premium to house prices, often between 5-20%, as parents seek quality education without private school fees. Bringing in a 20% VAT on private school fees will push a lot of these parents to reconsider private education, increasing demand for properties in sought-after state school catchment areas. This will drive up house prices further in these regions. We believe this is an opportune moment to sell properties around renowned state schools, as the potential shift from private to state education will amplify demand. We expect the impact on property values w will start to show within 6-12 months from now with substantial competition already seen among buyers in these desirable areas.

Parents worried about affording private schools after the tax change are already considering moving sooner rather than later, as delaying will mean facing higher property prices and more competition.
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Austyn Johnson
Founder at Mortgages For Actors
Being in a good catchment area encouranges the bigger properties such as 3/4 bedroom houses being bought by families, usually they have one good income or 2 incomes, which usually means a good established family. Not only does the school help the area, the people that it brings, also helps to keep the area high quality. If a new property goes up for sale in this area, these families will jump on it and end up with a high house value. After the first few sales, the prices will increase and encourange competition. Parents considering private schooling should really check into the full costs before they decide on this as the bes
Are there any areas you think will really benefit from the change – specific t course of action. Maybe look at the edges of the catchment to find slightly lower cost properties. But then if you are pushing it close to the edge, is private schooling the best way to go? Local sellers will be looking to maximise the opportunity, especially those looking to downsize.
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James Bull
Mortgage Broker at JB Mortgages
Being in a good school catchment area has always been a desirable factor when buyers are looking for a home, i do not see this changing regardless of what happens with private schools and VAT.