Research: Buyers pay more for homes near top schools

Land near top state schools in the UK holds property buyers are willing to pay more for, according to new research.

A study by Cranfield School of Management on behalf of Halifax found that educational institutions with better GCSE pass rates can boost local house prices.

For every ten per cent improvement in the amount of children obtaining five or more A*-C passes, the property prices go up by three per cent.

The researchers said this would mean a property near a school with an 80 per cent pass rate could be 12 per cent more expensive than an equivalent home near a school with a 40 per cent pass rate.

It could also suggest that self builders looking for a suitable plot of land near a top state school could see their home be worth even more after completion.

Martin Ellis, economist at Halifax, said the findings were "significant".

"In a time of falling house prices it's important to be aware of the many factors affecting property value," he added.

In other Halifax research, it was found this week that 23 per cent of respondents to a survey said proximity to the countryside was the most important factor when considering a new home's location.