Parents hoping to buy a home near the best schools can expect to pay significantly more, according to researchers.

They found that for every additional 10% of children doing well at a primary school in London and the South East the price of nearby homes jumped �15,000.

In the north of England the extra cost was �6,100, while in the West Midlands it was �5,200.

Researchers at the London School of Economics' Centre for Economic Performance say the children of low income parents are being excluded from the best schools as a result.

Penalised

The evidence, to be presented this week at the Royal Economics Society's annual conference, is the first proof of what many parents have long suspected.

Researchers based their findings on primary schools' success in national tests at the age of 11 and the cost of nearby homes.

Finding a direct link, they said the children of parents who could not afford to move near the best schools were being penalised.

They said schools should take account of factors other than where a child lives in deciding who to admit.

Last year a University of Warwick study found that house prices in Coventry increased by up to 19% in the catchment areas of good comprehensive schools.

It suggested parents were willing to pay up to �20,000 extra to buy into areas with the best schools.