Today, we’ll share with you the relationship between real estate and education in the UK. What is the UK education system? How does it play a role in wealth & social inequality? And what is its impact on your home-buying decisions?
Watch the video above to benefit from a detailed dissection. Here’s a quick summary breaking down the key take-aways.
THE UK EDUCATION SYSTEM – SOME FACTS
In the UK, you can draw a very distinct line between access to an amazing education and a not-so-good education. And that line is drawn between independent and state-funded schools.
Here are some eye-watering figures:
- Private schools charge an average fee of 146,000 HKD/year, not including boarding
- Only 6-7% of the UK population can afford to attend private schools
- Families that have access to private education usually belong to the top 5%, making at least 1.2 million HKD per year
- Privately-educated individuals dominate prestigious jobs – making up 68% of top barristers, 74% of senior judges, and 71% of senior officers
WHAT CAN YOU DO TO GET INTO A GOOD SCHOOL?
There’s not much you can do besides being lucky enough to be born into the right family that can afford to live in the right district. Even when it comes to public schooling, the state school allocation system works in a way that prioritizes children who live closer to the school. Among state schools, property prices are higher near outstanding schools, around 8% higher near primary schools and 6.8% higher near secondary schools.
KEY STRATEGY – INVESTORS
The mantra is “Base price low, but high potential for growth.”
For example, renting in London, where the average rent level is high, costs around 15, 121 HKD but rental return rate only comes to 2.9%. Whereas, Liverpool with lower rent levels has a return rate of 4.62%.
Do your research and find locations with emerging private schools. Private schools show larger prospects of becoming more prestigious, which is sure to attract lots of rich parents. After all, 19% of potential property buyers in the UK prioritize being in the catchment areas of high-rank schools!
KEY STRATEGY – HOMEBUYERS
Look into Regeneration areas (check out our videos on the topic here and here) and plan ahead for your children! These developments hold a lot of potential for future growth and both public and private investment, with prestigious schools and universities sure to be part of the influx. Be sure to also check out places like Salford and Liverpool.
Make the Right Decisions
Evaluating where you purchase property is really dependent on your budget and your priorities. The biggest tip we can give you is to do the math.
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