How a Waitrose adds £40k to nearby homes
Living near a supermarket can help to boost the value of your home by up to £40,000, research has found.
Even a nearby store belonging to discount chains Aldi and Lidl could increase the value of a property, according to research by Lloyds Bank into the ‘Waitrose effect’.
The high street bank compared average house prices in postal districts near one of the major supermarkets with property values further from the stores.
They found that living near any supermarket chain added £22,000 on average.
But homes near a Waitrose are worth £38,666, or 10 per cent, more typically than those in the surrounding area.
Properties near a Sainsbury’s or a Marks & Spencer command a premium of around £27,000, while those near a Tesco are worth around £22,000 more than homes in the wider area.
Homes near an Asda are worth around £5,000 more than those in surrounding locations, while those near a Lidl have a premium of around £4,000 and properties near an Aldi are valued at around £1,300 higher than homes in the wider area.
Although Waitrose is the supermarket of choice for middle and high income families, the research does not make clear whether having a branch nearby contributes to the desirability of an area or the property value difference simply reflects the fact that stores are sited by the retailer to target locations which already feature more expensive homes. Aldi and Lidl tend to keep overheads low by siting stores where property tends to be cheaper.
nevertheless, 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 it is a strong factor.”