The Waitrose effect...how living near store boosts home by £36k
HOMES within easy reach of upmarket food store Waitrose can command a £36,480 premium, claims a study.
The “Waitrose effect” added the largest uplift in house prices. Other major supermarkets added £22,000 on average to nearby properties.
Researchers found Marks & Spencer, which had the second highest premium, added an average of £29,992 to the value of a property.
Even living near a “discount” supermarket, like Lidl, could boost house prices by £6,416.
Andy Mason, mortgages director at Lloyds Bank which carried out the study, explained: “Homes in areas close to major supermarkets are commanding a premium of £21,512.
“The simple convenience of doing weekly shopping within easy reach is a real pull for many homebuyers.
“The ‘Waitrose effect’ is clear. A premium brand on your doorstep means buyers typically need to pay top prices.
“But the research also shows that areas with ‘discount’ stores have, on average, seen the most rapid house price growth in recent years. There has been some suggestion that Lidl and Aldi are increasingly locating in more affluent areas where prices are relatively high. 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.”
The survey compared average house prices in postcode areas with a supermarket close by to property values further away, to calculate the price premium paid for homes located near the stores.
They found the average house price premium for living near each supermarket was: £36,480 for a Waitrose; followed by Marks & Spencer at £29,992; Sainsbury’s £26,081; Iceland £22,767; Tesco £21,344; Co-Op £20,687; Morrisons £10,504; Lidl £6,416; and Asda £4,117.