Research from Santander UK reveals the average price premium that parents would be willing to pay to be in a catchment area of a preferred school is 15%.
This is equal to an extra £40,500, assuming an average UK house price of £270,000.
Approximately one in 10 would pay up to 25% extra, which could be up to £67,500 more for an average house.
The report added that parents would be willing to move an average of 31 miles to secure a place at a top-tier school, an increase of nine miles compared to last year.
Santander also found that the average house price in the catchment areas of the top 50 primary and top 50 secondary schools in the UK stands at around £538,490, which is 42% higher than the average house price in the UK.
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A quarter of parents said the pressure of securing a place in a top school made them feel like they should earn more money.
Nearly a third said they have lost friends over the fierce competition for a place in a top school and one in six have had sleepless nights or argued with their partner or family.
A third said the stress of not getting into the desired catchment area led to them to consider home schooling.
The government’s introduction of VAT on private school fees was also cited as a stress factor.
Over a fifth of parents whose children are currently at private school said they have plans to move them to a state school due to higher fees.
Within that, over two-thirds said they will relocate to get their children into the best state school catchment areas.
Consequently, parents who had their eyes set on a state school are reporting added concerns for the future, with almost half saying they are worried that they will now have to compete with those who will no longer be taking up a private school space.
David Morris, head of homes at Santander, said: “Competition amongst parents to get their child into their top-choice primary or secondary school is fierce and it’s clear that this is taking a significant toll on families. Parents are understandably digging deep into their financial and emotional reserves to give their children a great education.
“There is good news for parents, however, as a record number of properties coming to the market – combined with stabilising interest rates and improved affordability – will hopefully help some of them bag an outstanding home in their dream catchment area.”
