Outstanding Ofsted rating boosts house prices by £37,000

Ofsted ratings have been seen to impact house prices. We have found that homes close to schools with outstanding Ofsted ratings command the highest house prices. These homes have also seen the highest price growth since the last school year.

Since schools finally opened last week, parents across the nation took a sigh of relief. However, those living close to a school with an Ofsted rating of ‘outstanding’ would feel even more relieved if they knew the value of their home.

We analysed the current average house price across thousands of postcodes in England that were home to an Ofsted-rated school.

A massive difference in home value between Ofsted ratings

There was a 13% (£35,067) increase in the average value of homes that sat close to schools with an ofsted rating of ‘requiring improvement’- these homes rose to an average of £305,230.

However, in postcodes where schools are rated as 'good', the average home sits at £341,238 in the current market. In these postcodes, house prices climbed by 13.2% in the last year, a surge of £39,734. This is 11.8% (£36,008) more than the average house cost where schools were rated as 'requiring improvement'.

What Ofsted rank led to the highest increase ?

The highest boosts belonged to postcodes where schools had an 'outstanding' Ofsted rating. The current average house value across these postcodes sits at £342,677, having climbed a whopping £40,145 in the last year alone (+13.3%).

This equals a 14.5% property price premium (£37,447) compared to postcodes where schools ranked as 'requiring improvement'— a striking difference of over £5000 in property price appreciation in just a year.

‘High demand for housing within catchment areas of schools’ - GetAgent CEO Colby Short

“The presence of a good school is an incredibly influential factor when it comes to local property market values and so it’s no surprise to see that postcodes home to a higher rated school also command a higher average house price.

High demand for housing within the catchment areas of these schools drives up property values as parents scramble to secure a spot for the children. As a result, not only do homes command more, but those close to a top rated school are also subject to a higher rate of house price growth due to a more competitive property market.”

Data and Methodology

Table shows the average house price in postcodes based on the school Ofsted rating, as well as the annual change and house price premium vs the lowest rating