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OFSTED, Waitrose and odd numbers

Thursday, April 21, 2016

Asking prices for property across the South East are currently more than 30% above the national average of £299,287* with proximity to the capital having historically been the driving factor. Across the area that The Frost Partnership network covers there’s a host of factors pushing prices upward year on year. Bucks, Berks and Middlesex all have abundant park areas, leisure facilities, employment opportunities and transport links – road, rail and air. Commutability, (especially proximity to stations) is a key factor in sustaining both property prices and demand but what else creates the pockets where buyers are prepared to pay a significant premium for property?

The Thames Valley and Chilterns area boasts both market towns and quintessentially English villages surrounded by picturesque countryside and riverside scenery, all very attractive to homebuyers. According to Lloyds Bank, properties in market towns were typically worth £25,000 more than similar properties in other towns nearby. But with educational standards never far from the news headlines, and with increasing publicity and competition for highly regarded school places, it’s perhaps not surprising to see that property prices are significantly higher “in catchment” for top performing schools.

Across South Bucks and East Berkshire a range of excellent schools, primary and secondary, includes both state schools and private schools. The selective grammar school system creates sought after catchment pockets with high demand for property, for example near Dr Challoners, Chesham Grammar, Burnham Grammar, Upton Court Grammar School, Herschel Grammar and Langley Grammar. Buying a house in catchment for a top state school can see prices inflated by thousands of pounds according to new research from Lloyds. It highlights the postcode for Beaconsfield High School in Bucks which attracted the biggest premium. Here, buyers pay an eye-watering £483,031 more than the average asking price for nearby properties. Yet, in spite of dramatically lower property values in neighbouring areas, many parents are not deterred from paying a premium. It’s simply seen as an alternative to paying private school fees over a number of years and while the school performs well, the property is likely to hold its inflated value.

New research from Santander Mortgages reveals that 26% of parents with children of school age have either bought or rented a new property purely to secure a place in their desired school catchment area, often overstretching themselves financially and paying over the odds for the property. Miguel Sard, Managing Director of Mortgages, Santander UK said: “With competition for school places fiercer than ever, parents are making significant financial and lifestyle sacrifices to be within the catchment area of desirable schools. All buyers have a wish list of what they want their new home to have and being within a certain school catchment is increasingly common amongst young families.”

So what else is likely to add a premium to your postcode property value? A recent Lloyds Bank report suggests that the ‘Waitrose effect’ can add 12 % - up to £40,000 - to the average property price.  Even allowing for the fact that John Lewis positions its Waitrose stores in more affluent areas, the presence of a Waitrose supermarket can significantly influence surrounding property values in a positive manner. The brand association is such that, for those who value perceived image, having a Waitrose in walking distance justifies a higher asking price for properties.

Of course, there are plenty of factors which add value to a property. Location within a desirable area, commutability and school catchment are perhaps the most obvious whilst others are more whimsical. Rooms with a view command a premium, especially water or river views – better still if a mooring’s included. It may be a case of “chicken and egg” but towns with more than their fair share of top restaurants are likely to see property prices above the regional average. A 2011 study revealed that 7% people pay a premium for a property with a name rather than a number; the name can add up to 5 % in value. And, oddest of all, odd-numbered houses on average sell for more than their even-numbered equivalents! And wherever you live you can boost both the perceived value and saleability of your property with some TLC where it counts - houses with well-maintained gardens sell for more than ones where the garden is unloved and overgrown.

From the vibrant al fresco riverside lifestyle (without the London price tag) offered by towns such as Staines, to the history and heritage of Windsor and the picturesque scenery and commutability of the Chilterns, the South East has a great deal to offer prospective buyers and tenants. For more information about the area or to see our portfolio of properties for sale or to let across Bucks, Berkshire and Middlesex please search on frostweb.co.uk or contact your local Frost office.

*Figures Rightmove February 2016