An Aberdeen property expert believes people are buying houses in sought-after catchment areas in the city as the impact of VAT on independent school fees starts to bite.
Aberdein Considine partner Chris Comfort says people who would typically send their children to private schools are instead relocating to areas with top performing state schools.
The A93 corridor from Cults to Milltimber is proving most popular so far with recent figures showing a 7% increase in house sales and a 12% increase in house viewings.
The average sale price, according to ASPC figures, has risen by 12% to £351,595.
Cults ‘increased sales figures and prices’
Mr Comfort believes this is down to parents looking at moving to the Cults Academy school zone ahead of the new 20% VAT hike coming in to force next month.
He said: “People who would typically send their children to private schools in the city are now relocating to make sure they are in the catchment area for the city’s top state schools, including Cults Academy.
“Although Cults has always been a desirable and aspirational area for people in Aberdeen to live, we are now seeing increased sales figures and sale prices, which correlate to the announcement about the increase in private school fees.
“With some school fees in Aberdeen going above £20,000 per annum from next year, it’s likely that increasing numbers of people will see moving house to a top state school catchment area as a more sustainable option than private school for the long term.”
Chancellor Rachel Reeves confirmed during the October budget all education and boarding services provided by independent schools will be subject to VAT at 20% from January 1.
Property hot spots
40 properties were sold in the Cults area during August to October this year, compared to 32 in the same period in 2023.
Since its opening in March 1967, Cults Academy has consistently ranked highly in league tables but dropped out of the top 10 for the first time this year.
It was rated 16th in The Sunday Times Scotland 2024 High School League Table.
It was 6th in the table last year and 4th in 2022.
Pupils come to Cults Academy from primary schools in Culter, Cults, Milltimber and Lairhillock.
But concerns have been raised about the school being close to over capacity.
Latest council figures from last year show a total roll 0f 1275, making it at 95% capacity.
Mr Comfort believes it’s not only Cults Academy that could see an influx of pupils but also Aberdeen Grammar School and Westhill Academy.
He said: “Other popular areas where we are likely to see a similar pattern include the West End of the city where Aberdeen Grammar School is ranked 17th in Scotland and the catchment area for Westhill Academy, which is one of the top 25 schools in the country.
“We won’t know the extent of people moving until the middle of next year when we have the figures for the first quarter of 2025, but we certainly expect to see sale prices increase in these property hot spots, which is good news for those looking to sell.
“However, if you are thinking of moving into these areas, it would be wise to start looking sooner rather than later as we expect the price of family homes to continue to creep up as the impact of school fee increases compounds with the rising cost of living.”
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