Buyers prepared to pay more for houses near to discount stores

HOUSE PRICES near budget retailers like Aldi and Lidl have surged at a faster rate than those near supermarkets generally in recent years, according to new analysis.

Properties close to Lidl, Aldi, Morrisons and Asda have typically increased by 15 per cent (£29,316) in value over the past four years, Lloyds Bank said.

This is a faster percentage increase than for house prices near all major supermarkets across its study, at 10 per cent. Despite the rapid price uplift for homes near budget stores, the report found that the “Waitrose effect” still commands the biggest house price premium in cash terms. To live in the same postal district as a Waitrose is going to cost £43,571 more than those in the wider town they are situated in on average. This is followed by properties close to a Marks & Spencer, with a premium of £40,135, and Sainsbury’s, at £32,707.

House prices near all the supermarkets in the study were found to be higher typically than property values in the surrounding area – meaning that home-buyers can expect to pay a premium to live near a major supermarket.

On average, living near a supermarket commands an average house price premium of £21,500, the research found. At £420,112 on average, house prices in areas near a Waitrose are typically higher than those near the other supermarkets in the study.