Choosing a house is a difficult thing to do because when you choose a house you must consider so many different factors. So many things can influence, or change, your decision; therefore, the process of selecting a house can be a strenuous one. The types of things that you may consider could be: your proximity to supermarkets, whether the house is located in a town or village, or the availability of schools in the local area. Of course, all three examples are important things to consider; however, the lattermost point – the availability of local schools (and the proximity to these schools) – is what we’ll be focusing on today. A recent study conducted by PwC has revealed the way in which price premiums for houses can change based on their location in relation to primary and secondary schools. Let us, hence, briefly explore this issue and the effects it could have on consumers.
According to the study conducted by PwC, living close to a top primary or secondary school can increase the price of a house rather dramatically. Statisticians predicted that those living close to the best secondary schools can expect their houses to cost an extra £25,000. This is in stark contrast to those living close to lesser schools; people could see their house prices being 5% lower than surrounding areas. I think it is fair to say that this can be beneficial for some; however, the consequences could be bad for others.
For those people living further away from good schools, it could be difficult to gain access to a good education. They may become stuck in a situation, whereby their education suffers due to their location. One solution to this problem could be the government providing affordable houses closer to schools, in order to ensure that people have fair access to good education. This, however, will present a large opportunity cost.
In summary, it seems as though house prices can, well and truly, be affected by one’s proximity to a school. More specifically, however, the price change is dependent on the standard of said school. This issue is becoming increasingly problematic for some, so it will be interesting to see the solutions that the government, and educative agencies, can come up with in the future.