Developer Offers to Cover Private School Fees to Boost Luxury Home Sales

Berkeley Group is offering to pay up to £40,000 of private school fees in an effort to incentivize the purchase of luxury newbuild homes in its Trent Park development. The offer, aimed at attracting families to the gated community near Enfield in North London, covers as much as two years of tuition at St John's Preparatory and Senior School.

The homes at Trent Park, which include amenities such as 24-hour security, a swimming pool, and a gymnasium, are priced from approximately £760,000 for a one-bedroom unit to £1.8 million for a five-bedroom property. A visit to the estate revealed a number of homes with "for sale" signs, though Berkeley Group states on its website that the development is over 90 percent sold.

Some homeowners residing in the Trent Park estate expressed unawareness of the fee-subsidy offer. Richard Gray, a resident for six years, noted that he was not offered the deal despite having children who attended private school. He speculated that the initiative may be a response to a decline in private school enrollment, possibly linked to the introduction of VAT on school fees. Gray described the offer as a "whimsical idea" that would not personally compel him to purchase a property there.

Fees at St John's Preparatory and Senior School vary, with annual costs ranging from £13,500 for reception-aged children to over £17,400 plus VAT for students in years 7 through 13. The developer's offer could amount to a total payout of approximately £41,760 for two years of education, although it remains unclear if this amount can be split between multiple children.

Residents also commented on the current state of the London property market, suggesting it is challenging to sell higher-priced homes. Dan Ball, a homeowner, indicated that developers like Berkeley might be facing sales difficulties, and he believed the school fee offer reflected the demographic the developer is targeting. He added that his own two-bedroom flat sold for £750,000, underscoring the high price point of properties in the area.

Other incentives have been observed in the wider property market, including offers of electric vehicles, bicycles, upgraded fittings, and interior design consultations. These come as a significant number of newly completed homes in London have remained unsold. Data from Molior indicates that 4,629 homes in the capital failed to find buyers in the second quarter of the year, while construction on another 2,704 units was halted. Housebuilders are reportedly cutting prices by an average of 8 percent, with some offering combined discounts and incentives reaching up to 30 percent.

A spokesperson for Berkeley Group stated that "now is a very good time to buy" and that the company, like other homebuilders, offers a range of buyer incentives. The spokesperson confirmed that Trent Park is more than 90 percent sold, with a limited number of houses and apartments remaining, some still under construction.