The Link between Education & Property Explored

What does January mean to you? Trying not to break New Year resolutions? Bagging some bargains in the sale? Hitting the gym in a bid to work off Christmas indulgences?

For thousands of families across the country, January brings a very different set of considerations. The month contains three important educational deadlines. The primary school admissions deadline is usually around the 15^th of January, while those with older children usually have to file sixth form and college applications by the end of the month. Lastly, the UCAS deadline for undergraduates is generally around 29^th January.

Education, property and now house prices go hand in hand. The pressure to get children into good schools really came to the fore in 1993, when Ofsted carried out its first inspection. For the first time, there was a bona fide way of appraising a school’s all-round excellence. It wasn’t long before everyone headed for the ‘outstanding’ rated facilities, putting pressure on places, and forcing schools to set smaller and smaller admission catchments.

Before long, homes within catchment could command a premium. In fact, figures from the Department for Education revealed house prices were 8% higher near the best-performing primary schools, and 6.8% higher near the best secondary schools.

A note on school catchment areas

A school may take the proximity of the child's home to the school gate when offering places, so it’s worth checking the exact admissions boundary if you are moving primarily to apply for a specific school.

The pressure on places at the best schools is expected to increase in 2025, with many families pulling their children out of private schools, as VAT was added to fees on 1^st January 2025. Industry experts say families who can no longer afford private fees may move to get into the catchment of the best state schools, pushing house prices up.

Proof of address: timing your move

Applying for a state school involves a parent/caregiver having a permanent, valid address as part of the application process – something that can be difficult to prove if you’re in the throes of moving.

Ideally, a family will have relocated before applying for a school place. If the transaction hasn’t fully concluded when an application is made, the family should have evidence of exchange and a solicitor's letter confirming the completion date, or have a signed tenancy agreement if the family is renting.

Three of the best schools in…..

• Haslemere: Camelsdale Primary School, Shottermill Infant & Junior School, Wolmer Hill School

• Gosport: Woodcot Primary School, King’s Academy Gomer, St Mary’s Catholic Primary School

• Chichester: Bishop Luffa School, Chichester College Group, St Anthony’s School

• Bognor Regis: Rose Green Infant & Junior School, St Philip Howard Catholic School, Felpham Community College

Student lets: a different conundrum

According to tlyfe, around a third (31%) of all rental properties listed across Britain are targeted at students. This percentage is, however, much higher in many university towns, such as Newcastle, Nottingham and Leeds, where more than 70% of buy-to-lets are marketed to students.

There are pressures here in West Sussex, where the University of Chichester has campuses in the city and in Bognor Regis. The university’s plan to demolish an existing 40-bed, student accommodation block and replace it with a bigger facility illustrates demand but the plan was recommended for refusal in October 2024.

Supply not keeping pace with demand

The University of Chichester’s issue is reflective of a nation-wide student accommodation crisis. A CBRE report from 2024 says demand for purpose-built student accommodation (PBSA) - halls owned by universities and private providers - has grown by nearly 20% over the last decade, vastly outstripping supply. Based on current projections, approximately 59,000 PBSA beds are likely to be delivered by 2029, leading to a potential shortfall of up to 620,000 student beds.

In Portsmouth, the demand/supply imbalance is affecting rents. CBRE found the average weekly rent for a studio in Portsmouth has increased from £197 in 2021/22 to £221 in 24/25 – an increase of 12%.

An opportunity for private landlords?

The knock on effect is a private rental market that’s required to fill in the gaps. Returns for private landlords renting to students is good – even better if it’s a House in Multiple Occupation (HMO) – but 2025 is set to be a year of change.

At the time of writing, the UK Government has proposed to ban upfront payments of more than two month’s rent – a reform it wants to include in the Renters’ Rights Bill. This has the potential to affect students, especially those from overseas who are often required to pay 6 or 12 months’ rent in advance.

This follows the Bill’s proposals to ban Section 21 evictions and end fixed-term tenancy agreements – the latter a style of contract that landlords renting to students rely on as they can be created to align with the academic year.

Uproar in the industry has led to a new clause in the Bill allowing HMO landlords to give four months’ notice to full-time students, as long as a possession order is given between June 1st and September 30^th in any given year. It is hoped PBSA will benefit from the same exception, although this needs further clarification by the Government.

The Renters’ Rights Bill is expected to be finalised and passed into law later this year. If you would like to discuss this and any other property plans you may have, please contact your nearest branch of White & Brooks.