Parents are relocating to catchment areas of top state schools amid rising private school fees.
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Impact of VAT on Independent School Fees
As the new year approaches, families in Aberdeen are feeling the financial strain of rising independent school fees, particularly with the impending 20% VAT increase on these costs. This shift is prompting many parents to reconsider their housing choices, leading to a notable trend in the local property market.
According to Chris Comfort, a partner at Aberdein Considine, there is a significant movement towards areas with high-performing state schools, particularly along the A93 corridor from Cults to Milltimber.
Surge in Demand for Properties in Desirable Areas
Recent statistics reveal a 7% increase in house sales and a 12% rise in viewings in these sought-after neighborhoods.
The average sale price has also climbed by 12%, reaching approximately £351,595. This surge is largely attributed to parents eager to secure homes within the catchment area of top state schools, such as Cults Academy, before the VAT hike takes effect. Mr. Comfort notes that families traditionally inclined to send their children to private institutions are now prioritizing access to quality public education.
Long-term Implications for the Housing Market
With some private school fees in Aberdeen projected to exceed £20,000 annually, many families are viewing relocation as a more sustainable option. The trend is not limited to Cults Academy; other schools like Aberdeen Grammar School and Westhill Academy are also expected to see increased interest from prospective students. As families seek to navigate the rising costs of education, the demand for homes in these areas is likely to continue its upward trajectory.
Future Outlook for Aberdeen’s Property Market
While the immediate effects of the VAT increase on school fees are evident, the long-term implications for the property market remain to be seen. Mr. Comfort anticipates that the first quarter of 2025 will provide clearer insights into the extent of this trend. As families adapt to the changing educational landscape, those looking to buy in these desirable areas are advised to act quickly, as property prices are expected to rise further in response to the increased demand.
Conclusion
The intersection of education costs and housing choices is reshaping Aberdeen’s real estate landscape. As parents prioritize access to quality education for their children, the demand for homes in top school catchment areas is likely to persist, driving up property values and altering the dynamics of the local market.
