Living near a supermarket can boost the value of a home by an incredible £21,500, according to a new report. And the well-documented Waitrose effect is spreading with upmarket and budget outlets alike helping to increase the value of a property.
Research from Lloyds Bank showed that having a premium name such as Waitrose, Marks & Spencer or Sainsbury’s close by means homeowners can ask for a higher price when it comes to selling up.
A Waitrose on your doorstep means you can add a cash premium of £43,571 on to the average price of homes in the wider area. Properties close to an M&S store have an added premium of £40,135 with Sainsbury’s adding £32,707.
In the last year, living within walking distance of an M&S branch has risen by more than £10,000, the biggest rise of any of the supermarket chains.
Shop within walking distance is a boon
A branch of Tesco, the UK’s largest supermarket chain, adds more than £21,000 in value to properties close by, compared to those in the locality that are not near the store. Co-op and Iceland branches will add £21,020 and £17,445, respectively, to homes within walking distance.
The budget supermarkets, such as Lidl, Aldi, Morrisons and Asda are also getting in on the act. If your home has one of these supermarkets nearby, it’s added £29,316 to the value of your property in the last four years.
Positive effect on property prices
Andy Mason, mortgages director at Lloyds Bank, said: “It’s easy to assume the effect of different factors on the value of a property, but this research clearly shows there is a significant link between the convenience of a local supermarket and house prices.
“The Waitrose factor has been known for some time, and although the likes of Aldi can’t yet boost house prices in quite the same way, the research shows all stores are now having a positive effect on local property prices.”
Waitrose reigns supreme in the wealthiest postcodes, according to the Lloyds research. The average price of a home close to a Waitrose is £42,112, more than double the average price of a location with an Aldi nearby (£213,765).