Parents pay an extra 41,000 to live near England's top state schools

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1 NOT FOR BROADCAST OR PUBLICATION BEFORE HRS FRIDAY 4TH SEPTEMBER 2015 This Lloyds Bank s and Schools Review examines house prices in the postal districts of the 30 top performing secondary state schools in England and the top ten performing secondary state schools in each region. The school rankings has been compiled using 2014 GCSE performance data from the Department for Education and reflects the percentage of pupils achieving 5+ A*-C GCSEs (excluding equivalents) including A*-C in both English and Maths GCSE and the percentage of A-A* grades awarded. The review is based on house price data from the Land Registry. Parents pay an extra 41,000 to live near England's top state schools Homes near England s top state schools have an average price of 344,466 over nine times annual average earnings Homes near Beaconsfield High School in Buckinghamshire pay the highest premium of 636,132 (186%) compared to the average house price in neighbouring areas Regionally the largest premium paid to live near the best state schools is in the North West, with discounts seen around schools in the East Midlands and the South West Parents face parting with almost 41,000 extra to secure a home close to the country's top performing state secondary schools, according to new research by Lloyds Bank. In 2015, house prices in the postal districts of the top 30 state schools in England defined as those secondary schools that achieved the best GCSE results 1 in 2014 were on average 40,728 (13%) higher than the neighbouring locations in their counties. Overall, average property prices have now reached 344,446 in the postal districts (postal districts being HP9, NW11 or BR6 as examples), of the top 30 state schools in England. This is higher than their county averages ( 303,738), by an average 40,728 (13%). A fifth of top state schools command a housing premium of over 125,000 The postal districts of six of the 30 top state schools command a house price premium of over 125,000 compared to their surrounding locations. Homes in the postal district of Beaconsfield High School in Beaconsfield have the largest premium with homes trading at 636,132 (186%) above the average house price in neighbouring areas ( 342,166). prices in the postal district of The Henrietta Barnett School in Barnet trade at a premium of 418,860 (76%) - the second highest; followed by St. Olave's and St. Saviour's Grammar School in Orpington ( 180,447) and the Tiffin schools in Kingston upon Thames ( 137,665). (See Table 1) But good state schools are not always in pricey areas Over half (16) of England's top 30 state schools are in locations with an average property price below their neighbouring areas average. Properties in the postal district of Aylesbury 1 of 5

2 High School (HP21) trade at a discount of 122,506 (or 36%) compared to the county average ( 342,166). The next largest price discounts (in cash terms), of 119,485, are in Reading, where Reading School and Kendrick School are located. These schools are followed by Queen Elizabeth's School, Barnet ( 95,681) and Westcliff High School for Boys Academy in Essex ( 58,970). (See Table 2) Andrew Mason, Lloyds Bank mortgages director said: "In general, homes close to the nation's top performing state schools command a significant premium over neighbouring areas. The presence of a top performing state school appears to help support property values in many of these locations as parents compete with other buyers to land the property that gives their child the best possible chance to attend their chosen school. South East, East Anglia and the North West schools' house price premiums are highest The postal districts of the top performing secondary state schools in seven of the nine English regions 2 command a house price premium compared to their county average. The North West has the largest premium with average house prices in the postal districts of the top ten state schools in the region trading at 66,398 (39%) above the average house price in their county. This is followed by East Anglia ( 48,642 or 20%) and the South East ( 45,871 or 15%). (See Table 3) In contrast, homes in the East Midlands and the South West that are close to the best performing state schools are, on average, around 6,600 (or 3%) lower than in neighbouring locations. High property values pricing out many on average earnings The average house price of 344,466 in the postal districts of the 30 best performing state schools is 9.2 times average gross annual earnings. This is significantly higher than the average across England ( 267,956) of 7.7 times average gross annual earnings. (See Table 4) The least affordable homes are those with a typical property price of 971,882 within the postal district of The Henrietta Barnett School the second most expensive in this survey. In this part of Barnet, property price is just under 23 times (22.9) gross local average annual earnings in the area. s in the postal district of the Beaconsfield High School are the second least affordable (22.1). In contrast, the most affordable properties with a house price to earnings ratio of 4.7 are in the postal district of the King Edward VI Five Ways School in West Midlands the least expensive in this survey at 138,759. -ends- 2 of 5

3 Table 1: prices in postal districts of the highest ranked* secondary state schools in England 2015 prices above county/borough average in Beaconsfield High School HP9 Buckinghamshire 978, , , % The Henrietta Barnett School NW11 Barnet ** 971, , ,860 76% St Olave's and St Saviour's Grammar School BR6 Kent 463, , ,447 64% The Tiffin Girls' School KT2 Kingston Upon Thames ** 631, , ,665 28% Tiffin School KT2 Kingston Upon Thames ** 631, , ,665 28% Altrincham Grammar School for Girls WA14 Cheshire 347, , ,171 58% Stratford Girls' Grammar School CV37 Warwickshire 336, ,340 93,405 38% King Edward VI School CV37 Warwickshire 336, ,340 93,405 38% The Skinners' School TN4 Kent 371, ,521 87,628 31% South Wilts Grammar School for Girls SP1 Wiltshire 281, ,472 43,994 19% Top thirty State Schools average 344, ,738 40,728 13% Sources: Lloyds, Land Registry and Department for Education * price for 12 months to May Table 2: prices in postal districts of the highest ranked* secondary state schools in England 2015 prices below county/borough average in Discount Discount Aylesbury High School HP21 Buckinghamshire 219, , ,506-36% Reading School RG1 Berkshire 237, , ,485-33% Kendrick School RG1 Berkshire 237, , ,485-33% Queen Elizabeth's School, Barnet EN5 Barnet ** 457, ,023-95,681-17% Westcliff High School for Boys Academy SS0 Essex 212, ,499-58,970-22% Sir Thomas Rich's School GL2 Gloscestershire 203, ,788-49,681-20% King Edward VI Five Ways School B32 West Midlands 138, ,170-39,411-22% Pate's Grammar School GL51 Gloscestershire 215, ,788-36,790-15% Langley Grammar School SL3 Berkshire 322, ,694-34,352-10% Colchester Royal Grammar School CO3 Essex 252, ,499-19,369-7% Top thirty State Schools average 344, ,738 40,728 13% Sources: Lloyds, Land Registry and Department for Education * price for 12 months to May 3 of 5

4 Table 3: Top state schools house price premium* by English region, 2015 Region in 2015* ( ) to to North West 237, ,315 66,398 39% East Anglia 288, ,434 48,642 20% South East 358, ,393 45,871 15% West Midlands 214, ,818 21,843 11% Greater London 438, ,831 38,058 9% North 160, ,276 10,480 7% Yorkshire and the Humber 207, ,331 13,310 7% East Midlands 163, ,657-5,188-3% South West 235, ,258-7,997-3% Sources: Lloyds, Land Registry and Department for Education,* price for 12 months to May Table 4: Least affordable postal districts among the highest ranked* secondary state schools in England 2015 Earnings 2015 ( ) /Earnings ratio The Henrietta Barnett School NW11 Barnet** 971,882 42, Beaconsfield High School HP9 Buckinghamshire 978,299 44, The Tiffin Girls' School KT2 Kingston Upon Thames** 631,593 47, Tiffin School KT2 Kingston Upon Thames** 631,593 47, Queen Elizabeth's School, Barnet EN5 Barnet** 457,341 42, Langley Grammar School SL3 Berkshire 322,342 31, Nonsuch High School for Girls SM3 Sutton 348,481 37, St Olave's and St Saviour's Grammar School BR6 Kent 463,969 50, Altrincham Grammar School for Girls WA14 Cheshire 347,322 38, Stratford Girls' Grammar School CV37 Warwickshire 336,746 38, Top thirty State Schools average 344,466 37, Sources: Lloyds, Land Registry, ONS and Department for Education * price for 12 months to May This information is intended for the sole use of journalists and media professionals. For further information, please contact: Chris Tuttlebee / christopher.tuttlebee@lloydsbanking.com Lloyds Bank is part of Lloyds Banking Group Tel: Website: 4 of 5

5 Helping Britain Prosper Lloyds Bank, part of Lloyds Banking Group is playing its part in delivering the Group's Helping Britain Prosper Plan (the Plan). Launched in March 2014, the Plan sets out seven separate and significant public commitments to do even more to help address some of the big issues facing its customers and Britain today. The first two commitments made within the Plan are: 1. We will help more customers get on the housing ladder - and more customers climb up it. 2. We will help our customer plan and save for later life To find out more about Lloyds Banking Group s commitment to Help Britain Prosper, please visit EDITORS' NOTES: 1 The ranking has been compiled using 2014 GCSE performance data from the Department for Education and reflect the percentage of pupils achieving 5+ A*-C GCSEs (excluding equivalents) including A*-C in both English and Maths GCSE and the percentage of A-A* grades awarded. National analysis is based on the 30 top performing state schools in England 2 The regional figures are based on the top ten performing state schools in each region. 3 North includes North East and Cumbria. The review covers secondary state schools covering Academies, Academy Converter, City Technology Colleges, Community schools, Community special schools, Foundation schools, Foundation special schools, Voluntary aided and Voluntary controlled schools. Registered Independent schools (any school which provides full time education for 5 or more pupils of compulsory school age, which is not maintained by a local authority, and which normally charge fees) have been excluded from the research. A number of the top 30 schools are grammar schools which also require an exam to be passed to allow entry. School's postal districts have been used in the report as they typically provide the best possible chance of attending the school on the basis of location. Although the catchment area of a state school - comprehensive and grammar can vary, schools usually have an 'oversubscription' criterion, which means that those living closest to the 'school door' will get priority if the number of successful applications exceeds the number of available places. s: The prices used in this research are simple arithmetic ('crude') averages. These prices are not standardised and therefore can be affected by changes in the sample from period to period. The review is based on data from the Land Registry. The data covers the 12 months to May. The house price premiums have been calculated using the postal district of each school and the relevant average county house price. Local authority data has been used for schools located in London. Earnings: earnings figures are from the ONS's "Annual Survey of Hours and Earnings" (ASHE) and refer to the means for full-time employees. At local authority level, figures for the relevant local authority (residence based) are used. Data produced by Land Registry Crown copyright "This report is prepared from information that we believe is collated with care, however, it is only intended to highlight issues and it is not intended to be comprehensive. We reserve the right to vary our methodology and to edit or discontinue/withdraw this, or any other report. Any use of this report for an individual's own or third party commercial purposes is done entirely at the risk of the person making such use and solely the responsibility of the person or persons making such reliance. Lloyds all rights reserved 2015" 5 of 5