While we like to think in a country with equality of opportunity, people will pay more for housing in areas where schools are better. In a system where schools are primarily locally funded, parents will pay a premium to live near good schools. This still is cheaper than sending children to a good private school because it relies on the tax payments from people who do not get any benefit from it - people with no school age children.
As a result, schools in some areas, which also benefit from higher standards set by parents, outperform schools in the average area, and of course, many schools under-perform the average. This results in many being poorly educated and never reaching their full potential.
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