FAMILIES in the South East are still willing to pay a premium for a property in catchment areas with good schools to give their children a head-start in life, but not as much as three years ago, according to the Royal Institution of Chartered Surveyors (RICS).

A RICS survey shows that despite high demand for property, the value-added-premium that potential buyers are willing to pay for the privilege is falling.

When the survey was last conducted, in August 2003, estate agents suggested South East buyers were willing to pay an 11 per cent premium.

The latest figures suggest the substantial rise in house prices has led to affordability difficulties in the areas close to good schools which in turn is putting a lid on prices in these sought after locations.

RICS South East director Trevor Hines said: "A secondary school with a good reputation can cause mayhem in a local property market. Buyers with children of school age will do and pay anything to get their children a place.

"However, our latest figures suggest some people are simply being priced out of the market in these key locations."

Some estate agents, responding to the questionnaire raised the point that properties more suited to non-family purchasers can actually suffer.

Their close proximity to a secondary school where the heavy traffic caused by school runs and children loitering around the premises out of school hours can be unappealing.