Private exodus sparks bidding wars near top state schools

Bidding wars have broken out for homes near top state schools raising fears that the Government's attack on private schools will price out poorer pupils.

In the past six weeks, almost a third of homes sold near a state school rated "outstanding" by Ofsted received three or more bids, according to estate agent Hamptons, 40pc higher than the market average.

It comes as state schools brace themselves to receive up to 40,000 private school pupils forced out by the Government's policy to charge 20pc on school fees from January, according to the Institute for Fiscal Studies (IFS).

The Telegraph previously reported that Surrey schools received almost 600 queries about state school vacancies in the space of two weeks.

Headteachers, bursars and chairman of governors from around 50 schools have also warned the Treasury that state schools risk being "overwhelmed by a mid-year surge in demand for school places that has not been forecasted".

Aneisha Beveridge, head of research at estate agency Hamptons, said: "The draw of top-rated schools means that homes within these catchment areas often come at a cost and command higher prices on average.

"It looks as though competition is heating up a bit with 28pc of homes near these top-rated state schools receiving three or more offers during the last six weeks, compared to an average of 20pc across the whole market."

One area where competition is fierce is Kent. The home county has almost 40 grammar schools, the most of any local authority in Britain, and many rely on catchment areas as part of their selection criteria.

Linda Wesson, prime director at Hamptons in Sevenoaks, said her office was dealing with inquiries from private school families looking to move to get into a Kent state school "all of the time".

Ms Wesson said: "What is so interesting is that since the election we are now getting inquiries from families from south-west London.

"We are getting a lot of inquiries from families in Richmond and Putney and they all want advice on primary schools and grammar schools".

It comes as a new study by wealth management firm Saltus found 13pc of private schools parents are planning to move their children into state school this academic year.

The survey, which measured the responses of 2,000 people with more than £250,000 in assets, also found 10pc are considering leaving Britain as a result of the tax raid.

Mike Stimpson, a partner at Saltus, said the Government's decision to push through its VAT policy halfway through the school year was "understandably unpopular" and meant wealthy families were considering taking immediate action.

However, Ms Wesson, who has 30 years' experience specialising in high-value property across Kent and the south east, said she believed most private school families would move next summer with many still holding out to see how much their school fees will rise by in January.

She warned this would push house prices up: "Obviously their budget for housing has been limited because they've been spending it on schools but if they move here for free schooling, they might have more money to spend on buying larger houses."

In the past 12 months, the price of a home in the same postcode sector as a state school rated "outstanding" by Ofsted averaged £382,310, according to Hamptons.

It means homeowners paid a premium of £38,580 to live near an "outstanding" state school compared to one rated "good" and a £83,360 premium compared to homes near a school that "requires improvement".