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Credit Crisis Hits Private Schools

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http://www.independent.co.uk/news/educatio...ols-883243.html

The credit crunch has forced at least five fee-paying schools to close, as increasing numbers of parents struggle to afford the fees.

Three private prep schools have followed two prestigious girls' senior schools and shut down after falling pupil numbers pushed them into financial difficulties, making them the sector's first victims of the credit crisis.

Children at Westbrook House Preparatory School in Kent were left without places for September when the school announced its closure at the end of term. The school, funded by a Kent businessman, Roger de Haan, who made his fortune with the Saga group of companies, said a shortage of pupils and financial problems had caused the closure.

Green Hill School in Evesham, Worcestershire, was forced to close last month because of falling pupil numbers, after more than 100 years. The third prep school was St Peter's school in Burgess Hill, West Sussex, a family-owned school charging up to £2,600 a term, similarly forced to close after 43 years, leaving only its nursery department open.

This follows news that Wentworth College, a private secondary school in Bournemouth, has gone into administration after its bank suddenly called in a £750,000 loan.

Wispers School in Haslemere, Surrey, another senior school, will likewise not reopen after the summer holidays, blaming the economic downturn and a drop in demand for all-girls education. Both schools were members of the Girls' School Association, which represents the UK's top female-only schools.

Experts warned that the closures were likely to be the first of many as the economic downturn forces families to reconsider whether they can afford to educate their children privately.

Small prep schools are set to be worst hit, as they are will be most badly affected if just two or three of their children are withdrawn.

But Jonathan Cook, general secretary of the Independent Schools Bursars Association, argued that it is too early for the economic downturn to have hit schools and that a small number of schools, particularly small ones, are anyway forced to close every year.

"I think it's too early to say that this is the recession biting. It is really sad for all those involved, but there are more likely to be local factors at play, such as local demographics or competition. I think that at the moment all schools are keeping a watchful eye on the future."

Chris Woodhead, a former chief inspector of schools who now chairs the Cognita chain of private schools, said: "It is certainly true that the credit crisis and a possible looming recession is making some people think very carefully about whether they can afford private education.

"But the evidence from the last recession in the early 1990s is that pupil numbers in independent schools did hold up because parents will make all kinds of sacrifices rather than pull their children out of school. But there will be some schools that cannot weather the storm."

So where are the kids going to end up going??? The best schools are already over subscribed.

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I live quite close to Roedean School and upon checking their fees I see they are at £9050 a term boarding. Considering that is out of someone's taxed income an annual outgoing in excess of £18k seems to suggest quite a few will not be enrolling next year. Unless, of course, they are daughters of OPEC members, local authority employees, or dentist/vet dependents. Looking at the publicity shots looks like a large contingent of Chinese pupils too!

Edited by Realistbear

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... £9050 a term ... an annual outgoing in excess of £18k

However, those that do attend will learn that there are 3 terms in a year, so the outgoing is £27k.

:)

See, if you pay for education you do get a better result!

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I live quite close to Roedean School and upon checking their fees I see they are at £9050 a term boarding. Considering that is out of someone's taxed income an annual outgoing in excess of £18k seems to suggest quite a few will not be enrolling next year. Unless, of course, they are daughters of OPEC members, local authority employees, or dentist/vet dependents. Looking at the publicity shots looks like a large contingent of Chinese pupils too!

There are three terms in an academic year aren't there? That makes it 27k by my reckoning and probably a pre-tax income of nearly 40k.

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Up to now, rising house prices have allowed parents to MEW every year for the school fees, 'secure' in the knowledge that they can just stick the cost of education onto the mortgage.

Not any more. No MEW = no fancy schooling.

Just another example of the illusion of prosperity that's characterised the last decade. No one had any real money, just 'credit' and more 'credit'.

As Mick and Keith once sang:

'It's All Over Now'

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Not surprised. We 've seen a steady stream of parents withdrawing their children from the (fairly poor) private school and sending them to us over the last 12-18 months. This tends to accelerate at the end of Key Stage 4, as the school in question doubles the day fees charged for 6th form. Surprisingly, the reports I've had from parents moving children are that it does not offer any of the perceived benefits of going private (small class sizes, good pastoral care, high percentage of A/A* grades at GCSE etc.).

I expect we will see more over the coming months, as the only thing that seems to be keeping this particular establishment going is the snob value of not having to send their children to the state school.

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All discretionary spend on private education will suffer. Not only private schools, but also piano, violin, flute, ballet lessons.

I remember back in my schools days, the fees for these was enough to put off my parents for sending me in any of these. (And you have to factor the initial purchase of the musical instrument - not cheap)

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Up to now, rising house prices have allowed parents to MEW every year for the school fees, 'secure' in the knowledge that they can just stick the cost of education onto the mortgage.

Not any more. No MEW = no fancy schooling.

Just another example of the illusion of prosperity that's characterised the last decade. No one had any real money, just 'credit' and more 'credit'.

As Mick and Keith once sang:

'It's All Over Now'

Dead right there. My kids are going to private school and many of their class mates I can definitely say that Grandparents are paying the fees via MEW in many cases. Now that has stopped because all of a sudden house price are falling and mortage rates are up so and many parents are struggling to cover the funding gap because bank of Mum and Dad are not able to raise the cash.

Many girls only school wil close or merge with the local boys school. I know half a dozen that did so last year so there are bound to be more in the pipeline. They were already sruggling before the credit crunch and now with the HPC in full swing, credit tight and also a falling number of children only the best wil survive.

I know four sets of parents that have withdrawn their kids form private school and four more have delayed the decision for 3 - 5 years until things pick up.

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I live quite close to Roedean School and upon checking their fees I see they are at £9050 a term boarding. Considering that is out of someone's taxed income an annual outgoing in excess of £18k seems to suggest quite a few will not be enrolling next year. Unless, of course, they are daughters of OPEC members, local authority employees, or dentist/vet dependents. Looking at the publicity shots looks like a large contingent of Chinese pupils too!

Have you considered applying for a job as a gardner/janitor at Roedean? That used to be my and my friends dream job when we were growing up on the south coast! ;)

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Have you considered applying for a job as a gardner/janitor at Roedean? That used to be my and my friends dream job when we were growing up on the south coast! ;)

The Roedean girls would chew you up and spit you out!!

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You've been watching too much US TV sat in San Diego RB. All those high-school 'dramas' where the schools have only two terms - Summer time so time for bikinis and then Christmas... time for fur-lined bikinis.

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A private girls school in Dorset was placed into administration last week.

The last thing an administrator would want is an open school, so unless a buyer can be found its likely to close permanently.

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All discretionary spend on private education will suffer. Not only private schools, but also piano, violin, flute, ballet lessons.

I remember back in my schools days, the fees for these was enough to put off my parents for sending me in any of these. (And you have to factor the initial purchase of the musical instrument - not cheap)

Ah not true - as kids are removed from private schools they are suddenly 20k better off and the paltry fees for violin lessons are a good 'private education' substitute and pacifier for the kids.

Peripatetic teachers I know had workload go UP during last slump.

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Ah not true - as kids are removed from private schools they are suddenly 20k better off and the paltry fees for violin lessons are a good 'private education' substitute and pacifier for the kids.

Peripatetic teachers I know had workload go UP during last slump.

Completely agree, unfortunately though I imagine the children especially at secondary school will be scared for life.

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Have you considered applying for a job as a gardner/janitor at Roedean? That used to be my and my friends dream job when we were growing up on the south coast! ;)

Girls from that kind of school are not like silly 13 year old chavettes, easily impressed by a f*cking caretaker, even if he does have a Vauxhall Nova with a nasty Halfords body kit on......

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  • 399 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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