The ‘Waitrose effect’ is clear; having a premium brand on your doorstep means buyers typically need to pay top prices
If you are looking to buy a property, you will almost certainly want to know what the local transport links, schools and crime levels are like, but you may also care to discover if there are any plans to open a Waitrose in the neighbourhood.
The opening of a new Waitrose supermarket can add an additional £36,480 on average to the value of local homes, while having the convenience of any national supermarket nearby may boost a property’s value by an average of almost £21,512, according to a new study by Lloyds Bank.
Residential properties close to a Marks & Spencer have the second highest premium, with homes worth an average of £29,992 more than properties further away, the research, which covered England and Wales, found.
Lloyds Bank compared average property prices in postal districts with a supermarket from a national chain with typical home values in the wider towns to calculate the price premium paid for houses and flats located near supermarkets.
While it would appear that ‘premium’ supermarkets can add the greatest value to nearby homes, low-cost supermarket chains can also add value, with properties located near a Lidl valued at £6,416 more on average than those in the surrounding area.
Prospective homebuyers, who want the convenience of living near a supermarket without the high price tag, should consider looking at properties with an Aldi store nearby.
Despite the recent popularity of Aldi, with its cheaper lines and award-winning products, the research suggests that properties near an Aldi store can be, on average, £2,902 less expensive than those in surrounding areas.
Andy Mason, Lloyds Bank mortgages director, commented: “With homes in areas close to major supermarkets commanding a premium of £22,000, the convenience of doing weekly shopping within easy reach may well be a pull for many home buyers looking for good access to local amenities.
“The ‘Waitrose effect’ is clear; having a premium brand on your doorstep means buyers typically need to pay top prices. But the research also shows that areas with ‘budget’ stores have, on average, seen the most rapid house price growth in recent years.
“There has been some suggestion that the likes of Lidl and Aldi are increasingly locating in more affluent areas where prices are already relatively high. Indeed, in 2014 house prices in areas with a Lidl were, on average, £4,700 lower than in neighbouring areas; today they are £6,400 higher.”
Here is the average house price premium for living near a supermarket:
Marks & Spencer £29,992
Source: Lloyds Bank