New research from Nationwide Building Society shows that nearly a quarter of UK parents of children aged 5 to 16 would pay up to 10 per cent extra on the price of a new home to move into the catchment area of a better school.
Nearly one in ten would be prepared to pay more than 10 per cent extra for their house.
Natiowide's research suggests that nearly one in five of parents say that a school league table or school Ofsted rating has influenced where they chose to live.
Richard Napier, Nationwide's divisional director for savings and mortgages, said: "Competition for places at the UK's best schools continues to increase and, although household finances remain stretched, it is significant that a number of parents are willing to pay more on the price of a new home to ensure their child goes to a good school.
"Taking the cost of a typical UK home, any parent willing to pay 10 per cent more would need to find an additional £17,000 on the total cost of the house, which is a lot of money in the current climate."
Research by London renting specialists Rentonomy indicates that proximity to certain schools in the capital is also affecting the rental market. Their figures, comparing an average two bed property in zone 3 against the average Key Stage 2 (KS2) score of the closest state primary school, shows that renting near the best performing schools will cost an average 30% more than renting near lower performing schools.