Education draws two billion pounds into London housing sector

LONDON: It is estimated that a whopping £2 billion (RM10.8 billion) is invested into London’s prime housing market annually, by parents securing accommodation for their children studying in London.

According to global real estate consultancy Knight Frank LLP’s global head of research Liam Bailey, one of the biggest drivers for prime residential markets globally is the demand for international education. But what makes British schools and universities so appealing to families from all over the world?

“This is largely thanks to the strong pastoral care and wide array of extracurricular activities on offer. Demand for an international education is also driven by the perceived benefit of being exposed to another country’s language and people. This broadened global perspective incentivises wealthy parents to send their children overseas to develop language skills and build a global network.

“The hope is that a high standard of academic teaching, the wide array of extra-curricular opportunities, and the development of an international cross-cultural perspective, will lead to better career prospects,” he said in Knight Frank’s Autumn Update of The Wealth Report.

His observation was based on a survey by the consultancy done in partnership with London-based education specialists Keystone Tutors in the summer of 2018 to find out why so many international families decide to choose a UK school. Over 130 education consultants, head teachers, heads of admissions, private client advisers and relocation agents participated.

The survey found that the countries with the greatest numbers of children represented among the institutions taking part in the survey were Hong Kong, mainland China and Russia.

The research also revealed that most parents send their children to study in the UK at around age 16, or sixth-form age, followed by 13, the age at which many enter secondary school.

According to the survey, the greatest motivation for sending their children to school in the UK were: quality of education (87% of all respondents) followed by prestige of school name – including perceived future employment prospects (67%); and to improve their children’s chances of securing a place at Oxbridge (Oxford and Cambridge) or other top UK universities (62%).

Property investment, quality of life, as well as the higher cost of school fees in other countries were other motivations.

Meanwhile, the main reason for choosing a UK university was the prestige afforded by the university name, and quality of education offered (each 80%), followed by quality of culture and lifestyle (44%).

Other popular countries parents would send their children to, for school, were the US (68% of respondents), Canada (29%), and EU countries (29%). For university options, the US leads with 86% of respondents confirming it as an option, followed by the UK, with Canada next (35%), the rest of the EU (35%) and Australia (20%).

Most respondents (66%) also believed that the Brexit vote has not had an impact on the attractiveness of UK education.

This story first appeared in the EdgeProp.my pullout on Sept 14, 2018. You can access back issues here.