Primary School Applications Deadline Day

It’s an important day in the calendar for so many Wiltshire parents, with the virtual mailsacks veritably bulging at Primary Schools like Sarum St. Pauls in Salisbury, Zouch Academy in Tidworth, St. Michaels in Aldbourne and The Holy Trinity CofE Primary School in Cheverell Magna – all of which are frequently oversubscribed.

Here at The House Group we want to extend our best wishes to all those parents crossing their fingers today that they will get their first choice…

But something else is playing its part in this year’s application process, confusing matters a little, which from a property point of view is causing us to sit up and take a bit of notice…

Reeves’ Autumn Budget was remarkable in several ways, in terms of the impact it had on the property market, with tax changes coming in that affect stamp duty and inheritance tax in particular, which are having a bearing on the overall market.

But one other measure, which has nothing to do with property directly – on the face of it, at least – is making itself felt when it comes to the property market in other ways.

Hang on – how have we gone from primary school admissions, to the Budget, to the property market in this single article, I hear you ask?

The answer is, because of the introduction of VAT on Private School Fees.

The addition of 20% VAT on Private School Fees comes into force this very month, January 2025. Suddenly, institutions previously considered charities are going to be treated as businesses, and therefore become subject to the same tax implications as businesses are – i.e. charging 20% on top of their fees for services rendered.

A survey by the Independent Schools Council (ISC) has revealed that Private Schools have experienced a 1.7% drop in enrolments already – which, given that the tax change has only just kicked in this month is already quite a change, and something that is only expected to become exacerbated as the tax change comes into effect.

In fact, the Institute for Fiscal Studies (IFS) forecasts that as a direct result of the addition of VAT to private school fees, between 3% and 7% of pupils will move from the private to the state sector.

How does this affect the property market in Wiltshire? Well, what we can expect to see is a general increase in demand for those immediate streets round schools like those mentioned earlier in particular. Victoria Road, Mill Road, St. Pauls Road…. These are just a few roads, and indeed just a few roads around Sarum Saint Pauls in Salisbury alone, which have all seen some quick, high-value sales (on a pound-per-square-foot basis) since the Budget announcement in October.

High demand drives high prices.

This is happening at least in part because many privately educated children actually live in areas where the local catchment schools are perhaps not quite so promising. Parents of such children have been relatively unconcerned previously, but now some of those parents, seeing the VAT on fees as being too much of a strain on finances, are seeing their immediate surroundings as being less than desirable, and are looking at areas like Salisbury, Tidworth, Aldbourne and Cheverell Magna as being the answer to their dilemma: How do we secure our child a great education? We secure a property in catchment for an outstanding school…

We will need to keep an eye on how this phenomenon plays out in Wiltshire’s cities, towns and villages as the next year or two pan out.

In the meantime, if you live in one of these areas now, blessed with an outstanding Primary or Secondary School, you might just be in for a treat next time you have your property valued…

Like we say, demand is high. If you would like to get an idea how your own property value might have changed, please do give us a call – we would love to have a chat with you.