Catchment area properties a bonus for landlords In Cambridge, Hills Road Sixth Form College sends more pupils to Oxbridge than any other state school. "Friends of mine were removed from Eton specifically to go to Hills Road and their families would rent in the area," says former pupil Georgia Grey. Two-bed flats on Hills Road cost about £300,000 and rent out for £2,200 a month. Olivia Parsons from Hunters Property Group says competition for places in two top schools is so fierce in Clifford, near Leeds, that three sets of prospective tenants recently had to send a testimonial to the agent saying why they should rent the property (all stated the school catchment as their main motivation). Escrick, Tadcaster and Saxton, near York, see similar competition. "One family are renting a property in Saxton for £650 a month, while still paying the mortgage on their own house, to get their son into Saxton High School," Parsons adds. In Escrick, a family home in the school catchment recently rented for £1,395 a month, while a similar one not in the catchment area rented for £950. Rentonomy.com, a website for tenants and landlords, has put a figure on the impact school catchments have on rental prices. By comparing the rent of an average two-bed property in London's transport Zone 3 against the Key Stage 2 score of the closest state primary school, they conclude that renting near the best schools will cost 30 per cent more than renting near lower performing schools. Rental properties near the top schools rent for £50 higher per week than even the next best schools, the website finds. Property website PrimeLocation calculates that rents are 7.8 per cent higher in the top 50 school spots than the rest of the UK. Property prices are also 35 per cent more expensive, so landlords should consider whether the rental premium outweighs the cost of buying and ensure that the property matches where local demand lies. Landlords are advised not to mention a specific school in marketing their property, because there is no guarantee tenants will get into the school. "People will know where they need to live to get into the catchment area and we will work with them to find something in the road that works," says Marc Von Grundherr, director of Benham & Reeves Residential Lettings. In London, such competition for catchment-related rentals isn't reserved for state schools. "When the French school, CFBL, opened in Kentish Town, we saw a 110 per cent increase in French nationals wanting rental properties near the school," says Mr Von Grundherr. Tenants will also pay a premium to live near transport links. For Canary Wharf workers, that means anywhere on the Jubilee Line, with St John's Wood a favourite, as well as new developments in Canada Water, one tube stop from Canary Wharf. "For American families relocating here with one parent working in Canary Wharf, larger properties between St John's Wood station and the American School on Loudon Road achieve premiums of up to 20 per cent compared with houses outside the two-minute walk catchment area," says Mr Von Grundherr. Savills Research analysis of the proximity to transport and property values highlighted the high concentration of renting around major transport links such as Canary Wharf, Mayfair and Hyde Park. Savills calculates that properties within a five-minute walk of a tube in a hotspot such as Islington can come with a 15-20 per cent premium. "The importance of connectivity cannot be understated," says Neal Hudson from Savills Research. This is particularly true in London, where renting has grown by 86 per cent over the past 10 years and 52 per cent of renters are under 35, so ease of access to work during the day, and to entertainment at other times is a primary consideration. As a result, they will pay a premium for proximity to public transport. Join The Property Club to receive exclusive tips and advice on becoming a landlord