Homes close to the best nurseries are commanding six-figure price premiums in London, new figures have suggested.

Families are paying significant property uplifts to live within walking distance of nurseries rated ‘outstanding’ by inspection body Ofsted, according to research from specialist lender Pepper Money.

Homes located within these catchment areas are, on average, worth 16% more than the wider local authority area. This can add £77,926 to a typical purchase price.

Largest premium

Chelsea records the largest nursery catchment premium in England, with homes costing an average £658,408 more than elsewhere in Kensington & Chelsea , at 34%.

Paul Adams, Sales Director at Pepper Money, says: “Parents understand that the right nursery matters, and the data confirms what many already suspected – in more than a third of outstanding-rated catchments, that choice comes with a meaningful price attached.

“An average premium of around £78,000 translates into roughly £450 more per month on a standard 25-year mortgage, and around £17,000 of additional household income is needed to pass a typical affordability test.

Door closes

“For self-employed parents, contractors, those returning after parental leave, or households with a few historic credit blips, the door can quietly close at exactly this point.”

The figures taken from the Land Registry also reveal that Bromley sees buyers paying an additional £194,974, a premium of 33%, while Waltham Forest carries a 26% premium of £153,261. Kingston upon Thames sees an uplift of £117,646 – at 18%, – and Sutton records a £133,682 premium, at 28%.