'˜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 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.
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).
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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.”
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).