Thursday 29 September 2016

Buying a home beside a school costs €5,000 more

Published 20/09/2016 | 02:30

Daft.ie and researchers at Trinity College Dublin found that the extra housing cost of living close to a school was 2.6pc (Stock)
Daft.ie and researchers at Trinity College Dublin found that the extra housing cost of living close to a school was 2.6pc (Stock)

It costs thousands more euro to live close to secondary schools, a new survey has found.

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Parents pay more than €5,000 to live close to a secondary school, the study from Daft shows.

And schools that send a lot of pupils on to third level tend to have the most expensive housing near them.

This 'school premium' is largest in Leinster, in areas outside Dublin.

Property website Daft.ie and researchers at Trinity College Dublin found that the extra housing cost of living close to a school was 2.6pc.

This translates into a national average of €5,600 to live 100 metres from a post-primary school, compared to a similar property 1km away from the same school.

It is close to 5pc more expensive for a property close to a school in Leinster, outside of Dublin. In Dublin, the school premium is 1.6pc.

Reflecting the fact that families requiring larger properties also require access to schools, the premium is bigger for three-, four- and five-bedroom properties than for smaller homes.

The report found that schools that send a larger fraction of students on to higher education cause a bigger impact on house prices nearby than others.

For schools where eight out of 10 or more of final-year students progress to higher education, the price premium is 4.3pc. This is almost 10 times as large as the premium where fewer than 50pc of students progress to higher education.

But the premium for being close to a secondary school has fallen since the boom.

Assistant professor of economics at Trinity College, Dublin, Ronan Lyons, said in other countries the link between house prices and schools was the reason that property tax is used to fund schools.

He added: "While that's not the case yet in Ireland, this shows a different aspect of the benefits that occur from public investment in education."

Irish Independent

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