Home buyers pay more than €5,000 extra to be near secondary school

The premium is largest in Leinster and smallest in Connacht-Ulster

Home buyers pay more than €5,000 extra to be near secondary school

File photo | Image: RollingNews.ie

Potential home buyers are paying €5,600 extra to live close to a secondary school.

That is according to new figures from the property website Daft.ie.

The premium is largest in Leinster and smallest in Connacht-Ulster.

The report says the difference is also much bigger for schools where most pupils go on to higher education, than where less than half progress.

The premium is significantly smaller for one and two-bedroom homes than for three to five bedroom properties.

"With the average home costing €215,000 in mid-2016, this translates into a price premium of just under €5,600", the report says.

But the premium for being close to a secondary school has fallen since the property boom.

Source: Daft.ie

Between 2006 to 2008, the added price was 3.8%, between 2009 and 2012 buyers paid 2.1% more. But the difference between 2009 to 2016 is only 0.9%.

Source: Daft.ie

Daft says the investment by taxpayers in new schools is reflected in the value of the property nearby.

In other countries, property tax is used to capture this value and fund schools. Daft says with this report, a similar approach could be adopted in Ireland.

"This would help ensure that Ireland continues to enjoy a good-quality education system", it says.

The report also finds that differences in general price are also apparent, with the average value of a three-bedroom semi-detached house in south county Dublin currently almost €500,000 - compared to less than €100,000 in most of rural Munster and Connacht.

Ronan Lyons is an economist at Trinity College Dublin and author of the latest report.

He told Newstalk Breakfast secondary schools are the real influencer, as opposed to primary.