The head of Ofsted has suggested that changes to the school inspection system could affect property values near top-rated schools.
Sir Martyn Oliver, Ofsted’s Chief Inspector, hinted that house prices in areas surrounding high-performing schools — particularly those rated “outstanding” — may drop once the watchdog replaces its current one-word ratings system this November. The new format will feature colour-coded report cards, offering more detailed assessments across 10 separate inspection categories.
Speaking at the Festival of Education at Wellington College, Sir Martyn acknowledged the potential disruption to estate agents and house-hunters, saying: “Here’s a burning question: what’s Rightmove going to do?” He noted that Ofsted’s ratings are widely used by property platforms and that the current system has a tangible impact on local markets.
Recalling his experience as a former headteacher and academy sponsor, Sir Martyn described how he saw house prices surge after two underperforming schools he worked with were rated “outstanding.” “The house prices shot up. [They] went up £15,000 within a week,” he said. “It does make a difference.”
Estate agent data supports this. A 2023 study by Yopa found that homes near “outstanding” schools were, on average, £116,000 more expensive than those near schools rated “inadequate.” Similarly, Knight Frank reported in 2021 that houses near top-rated primary schools sold for 10% more.
The shift to a more detailed reporting system comes amid growing criticism of the single-word judgments, especially after the 2023 death of Reading headteacher Ruth Perry, who died by suicide following her school’s downgrade from “outstanding” to “inadequate.” In response, Labour pledged to abolish the single-judgment model, and Ofsted announced its new report card system.
Under the revised framework, schools will be assessed with ratings ranging from red (“causing concern”) to dark green (“exemplary”) across key areas. However, schools will be allowed to continue using their existing one-word ratings until their next inspection, typically every three to four years. It remains unclear whether estate agents will continue to feature these ratings online beyond that point.
While the overhaul is designed to add nuance, not everyone is convinced. Critics — including Professor Julia Waters, sister of Ruth Perry — have accused Ofsted of simply replacing single words with colourful equivalents, calling the new model a “thesaurus version” of the old one. Others have compared it to Nando’s “peri-ometer,” and raised concerns that it may be too complex or confusing for parents.
Sir Martyn acknowledged these tensions, saying he had tried to strike a balance between providing enough detail without overwhelming schools. “Too much complexity and nuance can be stressful,” he said, “but too little doesn’t do justice to the hard work of teachers.”
He also admitted the change might make it harder for schools to celebrate success in the same visible way. “For over 30 years, we’ve done things in a single way,” he said. “We’re all used to seeing schools with balloons spelling ‘outstanding’ and local papers celebrating with them. That will change.”