Investors analysing long-term value and yield potential may want to look closely at school catchments this year. New analysis from Savills shows homes located near high-performing state schools continue to command substantial premiums – both in purchase value and tenant demand – with the strongest concentrations in London and the South East. For landlords, that could mean improved rental pricing power and lower voids where supply remains tight.
Rent growth outlook tied to school performance
Savills examined parliamentary constituencies in England and assessed academic performance based on Department for Education Key Stage 2 and Key Stage 4 outcomes. The results show a significant link between house prices and education quality, with 68% of the highest-performing constituencies located in London and the South East.
Critically for landlords, these areas tend to attract long-term tenants – particularly families seeking stability before secondary level. One letting agent comment from Rightmove’s quarterly rental trends report earlier this year noted that “three- and four-bed homes within walking distance of well-rated schools now attract waiting lists, particularly before September move-ins.”
Savills head of residential research, Lucian Cook, said:
“There is a well-established link between house prices and access to high-performing schools. Families are willing to pay more for catchment access, and that trend may strengthen as private school fees rise.”
For landlords, that translates into a clear pattern: stock in prime education catchments doesn’t just hold value – it attracts consistent demand.
Where landlords see strongest property premiums
The data shows that the top 10% of the highest-performing school areas command an average price of £695,018 – a 28% premium above regional benchmarks. Even when adjusting for wider market differences, the uplift remains material.
| School performance tier | Avg price | Difference vs regional average |
|---|---|---|
| Top 10% | £695,018 | +28% |
| 10–20% | £484,811 | +13% |
| 20–30% | £423,640 | +15% |
| 50–60% | £307,873 | –3% |
| Bottom 10% | £240,485 | –22% |
Richmond Park ranks first nationally, with an average home price of £1,016,265 (51% above the regional norm). Outside London, Altrincham and Sale West leads the table, with values more than 121% higher than the North West regional average.
Even relatively “affordable” London education hotspots – such as Sutton and Cheam at around £500,000 – show upward pressure as competition intensifies.
Cook added that affordability constraints are now steering families to alternative pockets such as Rushcliffe, Sutton Coldfield, Bournemouth East and Sheffield Hallam, which deliver strong education outcomes without London-level premiums.
Specialist finance strategies for landlords targeting school catchment hotspots
While some landlords exited the sector following mortgage rate hikes and EPC pressure, others are repositioning portfolios strategically. Access to high-performing schools has become a core search filter on rental platforms – reflecting shifting tenant priorities.
NRLA feedback earlier this autumn highlighted that family renters now stay in one property an average of 4.2 years – nearly double pre-pandemic levels. For landlords, that means steadier income, fewer re-lets and lower maintenance churn.
However, there is a nuance: Savills found only a partial correlation between high-performing primary and secondary areas, meaning investors seeking long-term uplift may need to assess education outcomes beyond KS2 and into GCSE performance.
As Cook summarised: “For buyers, especially those planning long-term holds, the focus increasingly sits with areas demonstrating strong KS4 outcomes.”
Editor’s view
School-driven demand is no longer a soft trend – it’s a measurable asset factor. For landlords, the message is simple: buy where tenants need to live, not where they might. Areas with strong state schools aren’t just desirable, they’re resilient. As rising private school fees shift more households into catchment-led decision-making, this dynamic will only intensify. The question now is whether investors capitalise – or leave the door open for institutional Build-to-Rent operators to do it first.
Author: Editorial team — UK landlord & buy-to-let news, policy, and finance.
Published: 18 November 2025
Sources: Savills, Department for Education, NRLA, Rightmove rental trends report
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