"The price you pay": The impact of state-funded secondary school performance on residential property values in England

This paper examines the relationship between state-funded secondary school performance and local residential property values in seven major English cities. When choosing which secondary school they wish their children to attend, parents will be aware of the school’s performance in Key Stage 3, G...

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Bibliographic Details
Main Authors: Glen John, Nellis Joseph G.
Format: Article
Language:English
Published: Economists' Association of Vojvodina 2010-01-01
Series:Panoeconomicus
Subjects:
Online Access:http://www.doiserbia.nb.rs/img/doi/1452-595X/2010/1452-595X1004405G.pdf
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spelling doaj-8ff48a3ceebb427ca5fdd3f0f67d9f122020-11-25T00:39:08ZengEconomists' Association of VojvodinaPanoeconomicus1452-595X2010-01-0157440542810.2298/PAN1004405G"The price you pay": The impact of state-funded secondary school performance on residential property values in EnglandGlen JohnNellis Joseph G.This paper examines the relationship between state-funded secondary school performance and local residential property values in seven major English cities. When choosing which secondary school they wish their children to attend, parents will be aware of the school’s performance in Key Stage 3, GCSE and A- level examinations. We suggest that GCSE examination results will be the measure of school performance that parental choice will be most closely correlated with. Therefore, secondary schools with good GCSE examination results will be “oversubscribed” in that more students will wish to attend these schools than there are places available. Schools will then have to develop mechanisms for rationing the available places - central to rationing strategies in English schools at the moment is geographical proximity of the family home to the school of choice. Parents will thus have a strong incentive to purchase houses in the “catchment” area of high performing schools. Our results suggest that this is the case, with high performing schools stimulating a price premium in local residential property markets of between 1% and 3% for each additional 10% point improvement in the pass rate in GCSE examinations. http://www.doiserbia.nb.rs/img/doi/1452-595X/2010/1452-595X1004405G.pdfhedoniccapitalisation of school performanceproperty prices
collection DOAJ
language English
format Article
sources DOAJ
author Glen John
Nellis Joseph G.
spellingShingle Glen John
Nellis Joseph G.
"The price you pay": The impact of state-funded secondary school performance on residential property values in England
Panoeconomicus
hedonic
capitalisation of school performance
property prices
author_facet Glen John
Nellis Joseph G.
author_sort Glen John
title "The price you pay": The impact of state-funded secondary school performance on residential property values in England
title_short "The price you pay": The impact of state-funded secondary school performance on residential property values in England
title_full "The price you pay": The impact of state-funded secondary school performance on residential property values in England
title_fullStr "The price you pay": The impact of state-funded secondary school performance on residential property values in England
title_full_unstemmed "The price you pay": The impact of state-funded secondary school performance on residential property values in England
title_sort "the price you pay": the impact of state-funded secondary school performance on residential property values in england
publisher Economists' Association of Vojvodina
series Panoeconomicus
issn 1452-595X
publishDate 2010-01-01
description This paper examines the relationship between state-funded secondary school performance and local residential property values in seven major English cities. When choosing which secondary school they wish their children to attend, parents will be aware of the school’s performance in Key Stage 3, GCSE and A- level examinations. We suggest that GCSE examination results will be the measure of school performance that parental choice will be most closely correlated with. Therefore, secondary schools with good GCSE examination results will be “oversubscribed” in that more students will wish to attend these schools than there are places available. Schools will then have to develop mechanisms for rationing the available places - central to rationing strategies in English schools at the moment is geographical proximity of the family home to the school of choice. Parents will thus have a strong incentive to purchase houses in the “catchment” area of high performing schools. Our results suggest that this is the case, with high performing schools stimulating a price premium in local residential property markets of between 1% and 3% for each additional 10% point improvement in the pass rate in GCSE examinations.
topic hedonic
capitalisation of school performance
property prices
url http://www.doiserbia.nb.rs/img/doi/1452-595X/2010/1452-595X1004405G.pdf
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