Primary School Applications Deadline Day

It is January 15^th – and that means it is Primary School Applications Deadline Day, here in the London Borough of Richmond upon Thames. 

It’s an important day in the calendar for so many Richmond parents, with the virtual mailsacks veritably bulging at schools like Marshgate, Kings, Kew Riverside and The Vineyard, all of which are frequently oversubscribed. 

We are blessed in this part of the world to have so many fantastic state schools scattered about our neighbourhoods, both secondary and primary, and here at Bartlett and Partners 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…

Rachel 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, with 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.

How have we gone from primary school admissions, to the Budget, to the property market in this 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.

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How does this affect the property market in Richmond, Twickenham and Teddington? Well, what we can expect to see is a general increase in demand for those immediate streets around schools like those mentioned earlier in particular. Kings Road, Sheen Road, Grena Road, The Alberts…. These are just a few roads which are just around Marshgate Primary School, 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 because many privately educated children actually live in areas where the catchment schools are perhaps not quite so promising. Parents of such children have not had to worry previously, but now some of those parents, seeing the VAT on fees as being too much of a strain on finances, are now seeing their immediate surroundings as being less than desirable, and are looking at areas like Richmond on Thames 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 Richmond, Twickenham and Teddington as the next year or two pan out.

In the meantime, if you live off the Sheen Road near Marshgate Primary School, or off Richmond Hill or Queens Road near The Vineyard School, or off Mortlake Road near Kings or Kew Riverside, 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.

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