‘Waitrose effect’ leaves you £20,000 better off
LIVING near a supermarket can boost the value of your house by thousands – but you’ll cash in ten times more for a Waitrose than an Aldi.
The “Waitrose effect” could help to add 10 per cent to the value of a home, a study from Lloyds Bank suggests, which means £20,595 extra, based on the price of the average West Midlands property.
The research also found that discount chains add value to nearby properties too – but an Aldi or Lidl add only a fraction of the amount a Waitrose, Sainsbury’s or Marks & Spencer does.
Lloyds Bank compared average house prices in postal districts with a supermarket from a national chain with typical property values in the wider towns to calculate the price premium paid for homes located near supermarkets.
It found that living near any supermarket chain could add around £22,000. But homes near a Waitrose are worth £38,666 or 10 per cent more typically than those in the surrounding area.
However, with West Midlands properties selling for lower than the UK average, it works out as £20,595 here.
Properties near a Tesco or a Marks & Spencer command a premium of around £18,535 but living near an Asda is worth £4,119 to surrounding locations.
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.
“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 strong factor.”
On the basis the average asking price for a home in the West Midlands was £205,951 last month, here is what each supermarket could land you: Waitrose:10% (£20,595) Sainsbury’s: 10% (£20,595) Marks & Spencer: 9% (£18,535) Tesco: 9% (£18,535) Iceland: 8% (£16,476) Co-op: 8% (£16,476) Morrisons: 5% (£10,298) Asda: 2% (£4,119) Lidl: 2% (£4,119) Aldi: 1% (£2,059) it is a
There is definitely a correlation between the price of your home and whether it’s close to a major supermarket or not Mike Songer, Lloyds Bank