Would you pay a £22k premium to be close to a supermarket?
Living near a supermarket can bag you a £22,000 bonus on your home, according to new research from Lloyds Bank.
The report also reveals that premium brands can add even more to nearby house prices, with properties close to a Waitrose store receiving an average boost of £38,666 (or 10%) higher than the wider town in which they are located (£425,428 v. £386,763) – the highest amongst the national supermarkets.
And this ‘Waitrose effect’ extends to properties near a Sainsbury’s or Marks and Spencer too, which command premiums of £27,939 and £27,182 respectively.
But even nearby lower priced supermarkets can add thousands to the value of your home, with huge property price premiums for being close to Tesco (£22,072) and Iceland (£20,034).
The lowest house price premiums are in areas with an Asda (£5,026), Lidl (£3,926) or Aldi store (£1,333).
Mike Songer, Lloyds Bank mortgage director, said: “Our findings back-up the so-called ‘Waitrose effect’. There is definitely a correlation between the price of your home and whether it’s close to a major supermarket or not.
“The amount added to the value of your home can be even greater if located next to a brand which is perceived as upmarket. Of course, there are many other drivers of house prices beyond having a supermarket on your doorstep, but our research suggests that it is a strong factor.”
North West properties see greatest ‘Waitrose Effect’
Homes in the same postal district as Waitrose command the highest price premium in seven out of 10 regions of England and Wales. The largest premium is in the North West where the average house price in an area with a Waitrose is £73,629 (39%) higher than in the surrounding areas (£263,687 v. £190,058).
Other regions with a high premium are the West Midlands (£57,539), Yorkshire and the Humber (£36,376) and the South East (£31,681).