How the government’s move to add VAT to private school fees is reshaping the property landscape in Edinburgh and East Lothian.
This month, Cullerton’s explores how the introduction of VAT on private school fees is quietly shifting buyer focus towards high-performing state school catchments.
City education convener Joan Griffiths noted that although schools have capacity, “there were not always enough places to meet demand in some catchment areas.” That pressure falls most on consistently high-achieving schools such as Boroughmuir and James Gillespie’s in Edinburgh, and North Berwick High in East Lothian.
These areas already appealed to families for their blend of lifestyle and education. “We’ve seen increased interest and stronger-than-average sale prices in locations with excellent state schools,” says Mark Cullerton, CEO of Cullerton’s. “It’s not a surge, but a steady trend.”
Even before the policy change, homes near top schools commanded a premium. On average, being in the catchment for one of Scotland’s top 20 state schools can add over £40,000 to a property’s value.
That trend has not disappeared. Boroughmuir and Gillespie’s serve already sought-after residential areas. Stock scarcity adds to the challenge. Boroughmuir’s catchment, for example, includes limited residential pockets. Securing a family-sized home can be difficult even in a quieter market. A similar pattern is seen in North Berwick, where the blend of beachside lifestyle and strong schooling has long attracted families.
As more families consider state education, this quiet redirection of buyer interest is expected to continue. Mark Cullerton notes: “While the wider market remains subdued, family-focused areas show more resilience, and we expect this to continue.”
At Cullerton’s, we help buyers and investors navigate these trends with insight and care. Contact our Edinburgh or North Berwick teams to explore your options.
