'Waitrose effect' could mean £36k house price boost to those living near the supermarket

The study reveals homes near any supermarkets are likely to cost on average £22k more

Bookmark
Share
Comments

Isabel DobinsonReporter

08:00, 3 JUN 2017

The "Waitrose effect" can add more than £36,000 to a property price, says a study conducted by Lloyds Bank (Image: PA)

Properties within easy reach of a branded supermarket can cost up to £22,000 more than homes located further a field, says one study conducted by Lloyds Bank.

The study compares prices of houses located next to the branded stores to those in the wider area and lists Chiswick in Hounslow as the second location with the highest price difference.

Supermarket Headlines

Andy Mason Lloyds Bank mortgages director said: "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 home buyers looking for good access to local amenities"

The 'Waitrose Effect'

According to the study, house prices near a Waitrose typically cost £36,480 more than the wider area. This could boost the price of your home from £392,939 to £429,118.

Waitrose dominates in eight out of 10 regions with largest price premiums - a phenomenon which has been dubbed the "Waitrose Effect".

Mr Mason said: "The ‘Waitrose Effect’ is clear; having a premium brand on your doorstep means buyers typically need to pay top prices.

"But the research also shows that areas with ‘budget’ stores have, on average, seen the most rapid house price growth in recent years."

Second on the list is Marks and Spencer , with properties located nearby averaging at £29,992 more than home further away.

Sainsbury's (£26,081) and even discount chains such as Iceland (£22,762) also have a high premium.

Waitrose topped the list of the highest premium in the UK

Budget supermarkets

Perhaps surprisingly, areas close to budget supermarkets have seen the biggest rise in house prices.

According to the study, prices near an Aldi, Lidl, Morrisons and Asda stores, have increased by 11% in just three years - an equivalent to £21,4000.

The report stated: "This is a faster increase than for all supermarkets (9%) and marginally higher than for all areas in England and Wales (10%).

"In postal districts with an Aldi, the average house price has grown from £178,809 in 2014 to £198,810 in 2017 – an increase of £20,000.

"In addition, areas with a Lidl have seen average price grow of £23,722 (from £216,258 to £239,981)."

But it's not all doom and gloom for budget buyers, those living close to a Waitrose are still paying more than double compared to areas with an Aldi store.

In three years, there has been an increase of £20,000 for houses located near an Aldi (Image: PA)

Where in the UK?

The study also evaluated locations with the highest area to town house price premium.

If you live in Chiswick, which offers shoppers a Waitrose, Sainsbury's and Marks and Spencer then you could be paying up to 89% more than if you lived in a surrounding area.