'˜Waitrose effect' can add £40,000 to house prices

Living near a supermarket boosts the average value of a house by as much as £38,666, new figures from Lloyds Bank have revealed.
The Waitrose effectThe Waitrose effect
The Waitrose effect

The banking group’s research shows that living close to a well-known supermarket chain pushes the average value of a home up by £22,000, with those in proximity to one of the premium brands enjoying an even larger increase.

Living close to a Waitrose helped drive up values by £38,666 (10 per cent) compared with the wider town but even those properties near discount retailers such as Lidl and Aldi saw some rise in their value.

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The study compared house prices for postal districts including a supermarket against the prices in the wider town to to calculate the premium enjoyed by those near a supermarket.

The presence of a Waitrose store had the most marked effect, followed by Sainsbury’s (£27,939), Marks and Spencer (£27,182), Tesco (£22,072). At the other end of the scale were Aldi (£1,333), Lidl (£3,926) and Asda (£5,026).

Mike Songer, Lloyds Bank mortgage director, commented: “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.

“Our figures show that 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.”

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The Waitrose effect is most prominent in the North West of England, where the average house price in an area with a Waitrose is £73,629 (39 per cent) 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).