Mullucks Wells
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Rocketing House Prices Eat Into School Catchment Area Premiums
A recent report by RICS (Royal Institution of Chartered Surveyors) suggests that the premium that parents of school age children are prepared to pay for property in good school catchment areas is falling, despite the fact that demand is still extremely high. When the survey was last conducted, in August 2003, estate agents suggsted buyers were willing to pay a 12% premium, this figure has fallen to 8% with the premium for primary schools lower than for secondary schools.
These figures suggest that the substantial rise in house prices has led to affordability difficulties in the areas close to good schools which in turn is putting a lid on prices in these sought after locations.
Jeremy Leaf, RICS spokesperson says:
"A secondary school with a good reputation can cause mayhem in a local property market. Buyers with children of school age will do and pay what they can to get their children a place. However, our latest figures suggest thas some people are simply being priced out of the market in these key locations.
"It is quite normal for potential buyers to check the local Ofsted reports before they read the particulars for their preferred properties"
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