Living close to Lidl can boost house prices by £29k
Property prices in postcodes that have a Lidl supermarket are on average 19% higher than ones that don't, new research has revealed.
Online estate agent Housesimple.co.uk found that in 80% of postcodes home to a budget store, the average property price was higher by almost £29,000 compared to those without a Lidl.
According to the figures, the average house price in the Reading postcode RG45 that does have a Lidl was £447,428. This compares to the neighbouring postcode RG12 that doesn't, where the average house price is £274,381 - a difference of 63%.
The Lidl effect was also seen in Nottingham. The Lidl postcode NG7 has an average house price of £145,786 compared to the neighbouring Lidl-free postcode of NG6, which has an average price of £105,497.
In Coventry's CV3, the average house price was £179,252, while in it's CV2 postcode, the average property price was £129,732 – a difference of 38%.
The supermarket has seen a surge in popularity in recent years, with shoppers keen to cut their costs in the economic downturn.
Alex Gosling, managing director of Housesimple.co.uk said: "There's no longer a stigma attached to shopping at budget supermarkets like Lidl and Aldi, and that is clearly reflected in average house prices.
"Although the likes of Aldi can't boost house prices in quite the same way as a Waitrose or Marks & Spencer opening, budget supermarkets, rather than lowering the tone of an area, seem to be having a positive effect on local property prices."
However, buying agent Henry Pryor told Moneywise: "Rather like the chicken and the egg conundrum this may in fact be more indicative of where Lidl is choosing to open stores than the tenuous suggestion that house prices rise where there is a Lidl outlet. Connecting house prices to retail brands is not new – Waitrose, John Lewis and others have done it successfully before."
He added: "One of the suggested comparisons are the postcodes of RG45 and RG12. Unlike agents with a physical local presence, online estate agents may be unaware that RG45 is on the Hampshire/Berkshire border and contains high value homes many of whom I would expect receive their weekly shop delivered by the likes of Ocado.
Wellington Collage is close by where a term's boarding fees are over £11,000 and Her Majesty The Queen is not far away at Windsor. RG12 on the other hand is on the edge of Bracknell where you are perhaps more likely to find a supermarket distribution warehouse.
"This is a nice story but perhaps a bit of a stretch. It does however helpfully remind us that when it comes to buying and selling property, every bit of local knowledge helps."
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