House buyers paying more to live near schools

Buying a house located near a secondary school could see you pay up to €10,000 more for the property according to a report issued today by Daft.ie.

Overall, a house located 100m away from a second level school is worth, on average, 2.6% more than a house that is 1km away, based on an average home costing €215.000.

That 2.6% equates to an average ‘school premium’ of €5.600, while in Leinster (outside of Dublin) that rises to 4.7%, which adds an extra €10.105

The report also reveals how schools with a higher rate of third level progression earn a higher premium.

Where 80% or more of students progress to higher-level education, the premium is 4.3%, which is almost 10 times (0.5%) greater than schools that see less than 50% progress.

Speaking about the report, Ronan Lyons of Daft.ie said: “When people pay for a home, they are paying not only for shelter and space but also for location.

“Economists have long realised that the differences in the value of a location can reveal important signals about what people want in their day-to-day lives.

“Differences can be huge, with the average value of a three-bedroom semi-detached house in South County Dublin currently almost €500,000 compared to less than €100,000 in most of rural Munster and Connacht.

“It shows that the investment by taxpayers in new schools is reflected in the value of the property nearby.

“In other countries, property tax is used to capture this value and fund schools – with this report, a similar approach could be adopted in Ireland.

“This would help ensure that Ireland continues to enjoy a good-quality education system.”