Would you pay £21K more to live close to a supermarket?
Living near a local supermarket can push up your property’s value by £21,500 compared to homes in nearby areas without a supermarket chain close by, according to Lloyds Bank.
The lender found that having a premium brand on your doorstep means buyers typically need to pay top prices – dubbed the ‘Waitrose effect’.
Homes in areas with a Waitrose, Marks & Spencer or Sainsbury’s are most likely to command a higher house price premium when compared to the wider town average. The ‘Waitrose effect’ commands the biggest cash premium – costing £43,571 (12%) more than average house prices in the wider town, followed by properties close to a Marks & Spencer with a premium of £40,135 and Sainsbury’s (£32,707).
Homes close to a Tesco, the UK’s largest supermarket, are also worth over £21,000 (£21,369) more than other properties in the nearby area; closely followed by Co-Op (£21,020) and Iceland (£17,445) stores.
But it’s homes near to budget supermarkets which have seen the biggest house price rise. Properties near to Lidl, Aldi, Morrisons and Asda have increased 15% (£29,316) over the past four years, a faster increase than for all supermarkets (10%).
Over the past four years average house prices in localities with an Aldi grew by a fifth (20%, from £178,809 to £213,765).
Andy Mason, Lloyds Bank mortgages director, said: “It’s easy to assume the effect of different factors on the value of a property but this research clearly shows that there is a significant link between the convenience of a local supermarket and house prices.
“The Waitrose factor has been known for some time and although the likes of Aldi can’t yet boost house prices in quite the same way, the research shows that all stores are now having a positive effect on local property prices.”