The OFSTED effect – why London home values are impacted by school performance

The Ofsted effect: £87,000 increase in property values, for every 10% increase in the number of Outstanding schools.

  • Barratt London has conducted a major study exploring the performance of London schools and the trends to the local property market.
  • For every 10% increase in the number of Outstanding schools, property prices increase by an average of £87,000.
  • Harrow deemed the best value area to live, based on school performance, likelihood of first preference and property price.

A new study from Barratt London reveals the correlation between Ofsted ratings and London’s house prices.

To coincide with the back to school period in September and Open Day season in October, Barratt London took official Ofsted data for London’s primary and secondary schools and grouped boroughs by their percentage of Ofsted rated outstanding schools.

The results show an average and consistent property price drop (or rise) of £87,127 from each Ofsted rated outstanding bracket – something to consider before committing to such a significant investment.

As the table below indicates, the higher the percentage of Ofsted rated outstanding schools in a borough, the higher the average property price.

Ofsted Outstanding (%) Average House Prices (May 2018) Difference in Property Prices Number of Boroughs in bracket
60+ £1,326,653 1
40-49 £592,140 £734,513* 5
30-39 £517,120 £75,020 13
20-29 £466,934 £50,186 10
10-19 £330,758 £136,176 3
AVERAGE £87,127

*Not included in the average calculation.


So where is the best value place to live?

While Kensington and Chelsea are home to the highest rated schools with not one school in the borough deemed to ‘require improvement’ or be ‘inadequate’, this performance does come at a cost – a staggering £1,326,653 on average.

Furthermore, the chances of earning a place in the school of your choice are slim – just 68.4% for primary schools and 54.3% for secondary schools.

Taking into consideration Ofsted ratings, the likelihood of receiving your first choice and average house prices, the best value borough for education comes out as Harrow.

In Harrow 47.5% of all schools are deemed outstanding by Ofsted (third highest in the dataset).  It also offers a much higher chance of getting the school you want – there’s an 85.5% chance of getting into the first preference for primary schools, and 69% for secondary schools.

Plus, average house prices in this borough are far more affordable (£468,464). This all combines to make it a great value borough to set down roots for the future.

The table below details the top 10 boroughs with the highest average OFSTED rating (combined primary and secondary):

Region Borough Ofsted Outstanding % First Choice (Primary) % First Choice (Secondary)% House Prices (May 2018)
Inner London Kensington and Chelsea 61.5 68.4 54.3 £1,326,653
Outer London Richmond upon Thames 49.1 88 61.8 £670,655
Outer London Harrow 47.5 85.5 69 £468,464
Inner London Wandsworth 42.9 76.9 56.9 £605,295
Inner London Lambeth 42.7 84.2 55.2 £503,273
Inner London Hammersmith and Fulham 42.6 76.6 51.4 £713,014
Outer London Kingston upon Thames 39.2 82.7 69 £495,357
Inner London Tower Hamlets 38.0 89.2 71 £483,069
Outer London Barnet 37.4 84.1 67.6 £546,309
Outer London Redbridge 36.8 88 66.9 £421,641


To view the full dataset online, that includes projected school demand up to 2027, the list of boroughs where you are most likely to get your first preference and more please visit:

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