The research found that only the best schools affected house prices

Property close to top primary schools costs about 33% more than homes near the worst primary schools, they found.

And houses in the catchment area of a leading secondary school are about 18% more expensive than homes close to poor schools, according to the report.

But the research found that only the best schools affected house prices.

Berkshire studied

The findings have been released following a study of 490 houses sold in the Reading area of Berkshire during 1999 and 2000.

The team was headed by Professor Paul Cheshire of the London School of Economics and Stephen Sheppard of Williams College in the United States.

They found that a house in the catchment area of a good primary school in the town was worth about �42,550 more than one that was not.

One in the catchment area of a good secondary school sold for an average of �23,750 more, they claim.

Prof Cheshire said: "Estate agents have been telling us for a long time that house prices are higher if there is a good local school.

"Our study gives a precise estimate of this increase."

The researchers said that in London, a good primary school could raise the value of an average home from �240,000 to �320,000.

The study concluded that it was only close proximity to top schools which affected property prices.