UK Developer Offers Private School Fees to Boost Luxury Home Sales

Berkeley Group, a UK housing developer, is offering to pay up to £40,000 towards private school fees as an incentive for potential buyers of its luxury new-build homes. The initiative targets the Trent Park gated community near Enfield, north London, where some properties have remained unsold.

The offer covers as much as two years of tuition at St John's Preparatory and Senior School for parents purchasing homes in the development. The properties at Trent Park, which feature 24-hour security and amenities like a pool and gymnasium, are priced from approximately £760,000 for a one-bedroom unit to £1.8 million for a five-bedroom house.

During a visit to the estate, several homes were observed with 'for sale' signs, indicating a slower-than-expected sales pace. While Berkeley Group states on its website that Trent Park is 90% sold, some existing homeowners on the estate reported being unaware of the fee-covering offer and questioned its effectiveness.

"This is the first I have heard of the deal. I have lived here for six years and I certainly was not offered it," said Richard Gray, a resident and father of two. He added that the offer "says a lot about the people they are trying to sell to" but doubted it would influence his own purchasing decisions.

Fees at St John's Preparatory and Senior School vary, with yearly costs ranging from £13,500 for reception-aged children to £17,400 plus VAT for older students. This makes the maximum contribution from Berkeley Group approximately £41,760 over two years. St John's School, which has 480 pupils, received an 'outstanding' rating from Ofsted in 2019.

Residents have voiced concerns about the current state of the London property market, describing it as difficult for both developers and individuals to sell high-value homes. "I think it is difficult for developers and people generally to sell houses at the moment. I presume Berkeley are also struggling," commented homeowner Dan Ball. He noted that even a two-bedroom flat in the development was priced at £750,000.

Other financial incentives being offered by developers in the UK include covering the first year's council tax or service charges, as well as luxury gifts like electric cars. Data from analysts Molior indicates that over 4,600 newly completed homes in London remained unsold in the second quarter of the year, with work on another 2,700 homes halted. Housebuilders are reportedly offering discounts averaging 8%, with combined discounts and incentives reaching up to 30% on some properties.

A spokesperson for Berkeley Group stated that "now is a very good time to buy and like most homebuilders we can offer a range of buyer incentives." They also confirmed that Trent Park is "over 90 per cent sold with a small number of houses and apartments left available, some of which are still under construction."