Waitrose adds £36k to house price (but Aldi knocks off £3k)
HOUSE hunters will often check out the local supermarket as they weigh up a neighbourhood. And for good reason.
A bank report out today suggests the ‘Waitrose effect’ is as potent as ever, with house prices near one of its stores attracting an average premium of £36,480.
In fact, homes situated close to any of the major supermarkets cost £21,512 more on average than those in the surrounding area, according to Lloyds.
Properties with a Waitrose, Marks & Spencer, Sainsbury’s or Iceland nearby are most likely to fetch a higher price premium when compared to the rest of a town or borough.
Those living close to a Marks & Spencer have the second highest premium, with properties worth an average of £29,992 more than those further away, followed by Sainsbury’s (£26,081). Even discount chains such as Iceland (£22,767) command a strong premium.
Further down the pecking order, homes near a Lidl are worth an average £6,416 more.
This marks a big turnaround. Three years ago homes near a Lidl were on average worth £4,700 less than in surrounding areas. One explanation in the report is that Lidl has increasingly located its shops in more affluent areas where prices are already relatively high. But, curiously, living near an Aldi is not a good thing when it comes to the value of your house.
Homes within walking distance of the budget supermar- ket are actually worth £2,902 less than those in the wider area. Aldi and Lidl – both German firms – have been trying to move upmarket.
The average house price near a Waitrose is £429,118 – more than double that of areas with an Aldi (£198,810). But areas near budget stores have seen the biggest house price rises, up 11 per cent in three years.
The areas with the biggest price premiums compared to the wider area tend to have a range of pricier supermarkets. Ponteland in Newcastle has a Waitrose, Sainsbury’s and Coop. Average house prices there are £393,502 – more than double the £192,646 of the wider area. The average in Chiswick, West London – which boasts a Waitrose, Sainsbury’s and Marks & Spencer – is £940,218. This compares to £496,207 in the borough of Hounslow.
Andy Mason of Lloyds said: ‘The convenience of doing the weekly shop within easy reach may well be a pull for many homebuyers.’