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How does state school performance affect house prices in England?

There is a strong relationship between good state schools and higher house prices, both for primary schools and secondary schools. This has implications for children’s opportunities in later life and social mobility, as poorer families may be locked out of the best education.

Our analysis shows that living near to one of England’s best primary schools costs on average an extra £27,000, while houses near top secondary schools cost on average £25,000 more.

House price premium by region in England (2018)


Primary school premium

Secondary school premium




West Midlands



Yorkshire and The Humber



North West



North East



East Midlands






South West



South East



East of England



Source: PwC analysis, Department for Education, Land Registry

This premium varies significantly between regions. The largest percentage house price premium for primary schools is 12% in Yorkshire and the Humber, equivalent to £27,000. The secondary school house price premium varies more between regions, from £47,000 in the West Midlands to no premium in the East of England.

The absolute size of the house price premium affects whether a family can move to an area near to a good school, but so does the premium relative to wages. The areas with the highest percentage premia are also the regions where these premia are least affordable.

Affordability of the house price premium by region

Source: PwC analysis, Office for National Statistics, Department for Education, Land Registry

"Reducing the relationship between house prices and schools is an important component in improving education for all and increasing equality in opportunity. Both business and government can take action to help to unlock these benefits, but it is likely to take time to achieve."

Rob Walker, partner and UK housing lead at PwC

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Jamie Durham

Economist, PwC United Kingdom

Tel: +44 (0)7718 978658

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