Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Labour’s Tax Policy on Private Schools to Drive Up House Prices Near Top State Schools

by June 10, 2024
June 10, 2024
Labour’s Tax Policy on Private Schools to Drive Up House Prices Near Top State Schools

Labour’s proposed tax on private education is set to drive up house prices in catchment areas of high-performing state schools, according to leading estate agent Hamptons.

The plan, which includes the introduction of VAT on independent school fees, is anticipated to increase property values in desirable areas as parents move their children to state schools if private fees become unaffordable.

Aneisha Beveridge, Head of Research at Hamptons, commented, “If Labour wins, we would expect prices in catchment areas of top state and grammar schools to continue outperforming the rest of the market.” Hamptons’ research shows that property prices in areas with highly rated schools have already been rising faster compared to those in less desirable catchment areas.

Since 2008, property values near schools rated as “outstanding” have surged by 67%, while those near “good” schools have increased by 61%. In contrast, properties in catchment areas for schools rated “unsatisfactory” or “inadequate” have seen growths of 59% and 57%, respectively. Even with rising interest rates, properties near top schools have maintained their value better, with only a 1.5% decrease compared to a 5.5% drop for homes near “inadequate” schools.

Sir Keir Starmer has pledged to implement this tax policy immediately if Labour wins the general election. The plan involves incrementally introducing VAT on almost all private school fees over five years, reaching the standard rate of 20%, and removing business rates relief for independent schools.

Despite this, Beveridge noted that high interest rates could limit house price growth in these already expensive areas. “With mortgage rates where they are, it’s particularly costly for households to upsize, which will keep a bit of a cap on price growth,” she said. Families might need to balance the additional costs of private school fees against the potential expense of moving and downsizing.

Wealth advisers report that some families are already relocating to reduce outgoings or to be near top state schools in anticipation of Labour’s policy. The Bank of England is expected to lower interest rates from the current 16-year high of 5.25% in the coming months, which could revive the property market.

Hamptons has also observed increased competition for homes near “outstanding” rated state schools since Labour announced the VAT proposal in 2021. Presently, around 7% of pupils in the UK attend private schools.

Read more:
Labour’s Tax Policy on Private Schools to Drive Up House Prices Near Top State Schools

0
FacebookTwitterGoogle +Pinterest
previous post
Lib Dems Unveil Bold Manifesto for Self-Employed
next post
Labour Abandons Pension Lifetime Cap Reinstatement in £800m U-turn

You may also like

Your ultimate guide to long service leave

July 26, 2024

Jason DeLano Discusses His Role As a Solutions...

November 15, 2022

The Best High RTP Slots: Maximize Your Winning...

December 7, 2024

Record Surge in UK Business Start-ups Signals Resilience...

February 12, 2024

Understanding Alternative Dispute Resolution (ADR): A Comprehensive Guide

December 30, 2024

Pizza Express eyes £30m bailout as tax hikes...

March 7, 2025

Best SMM Panel Services 2023 Edition

July 27, 2023

Overcast HQ raises $1.2 million bridging round led...

June 3, 2024

New North Sea licences will ensure energy security,...

July 31, 2023

Independent retailers not convinced Truss’ government will positively...

September 28, 2022

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • HMRC inheritance tax investigations surge 37% as treasury seeks to plug revenue gap

      June 9, 2025
    • Believ secures £300m to roll out 30,000 public EV charge points across the UK

      June 9, 2025
    • US and China hold London talks to ease trade war tensions

      June 9, 2025
    • British fathers urged to join landmark ‘dad strike’ over poor paternity leave

      June 9, 2025
    • IVF parents should have right to paid fertility leave, says GMB union

      June 9, 2025
    • Reform UK clashes with Bank of England over interest payments to lenders

      June 9, 2025

    Categories

    • Business (8,158)
    • Investing (2,019)
    • Politics (15,571)
    • Stocks (3,136)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved