UK house prices: The Waitrose effect

 

A new research has now revealed how supermarkets in close proximity to property can bump prices up by £21,512.

The study from Lloyds Bank shows that houses in close proximity to a Waitrose, Marks and Spencer, Sainsbury’s or Iceland are most likely to gain a higher premium than the wider town average.

https://www.buyassociation.co.uk/2017/05/18/5-surprising-factors-impact-house-prices/

Prices close to upmarket supermarkets can be particularly high, the report continued. As an example, the study showed that the average price of a property within easy reach of a Waitrose is typically £36,480 higher than the wider town average.

Properties close to a Marks and Spencer bring the second biggest premium, as homes close to a branch are worth an additional £29,992 compared to homes further away. A Sainsbury’s nearby can add an extra £26,767 to your home’s value and Iceland will put an additional £22,767 on the price tag.

If a property is located within easy reach of all four supermarkets price tag are on average 9% bigger. However the research also shows that locations close to budget supermarket have increased their value by 11% in three years, the biggest rise overall.

House prices close to Aldi, Lidl, Morrisons or Asda have increased by £21,400 over the last three years.

Andy Mason of Lloyds Bank explained:

“With homes in areas close to major supermarkets commanding a premium of £22,000, the convenience of doing weekly shopping within easy reach may well be a pull for many homebuyers looking for good access to local amenities.”

https://www.buyassociation.co.uk/2017/03/28/ever-wondered-investing-close-farmers-market-well-maybe/

Mason clearly calls out the “Waitrose Effect” where buyers have to buy a premium price to get a premium product, but also explains that locations of budget supermarket should be watched closely.

“There has been some suggestion that the likes of Lidl and Aldi are increasingly locating in more affluent areas where prices are already relatively high. Indeed, 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.”

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UK house prices: The Waitrose effect

UK house prices: The Waitrose effect

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