Live near a Waitrose? It can boost your house price by £40,000
Living close to a well-known supermarket chain can boost the price of your home by £22,000 on average, according to a new report.
And living close to a Waitrose store can boost the price of your property by 10% - or £38,666 on average.
Homeowners in the North West enjoyed the biggest price hike when it comes to the ‘Waitrose effect’. In this region, the average price of a home in an area with a Waitrose is on average £73,629 (39%) higher than in the surrounding areas.
This is followed by the West Midlands (£57,539 higher), Yorkshire and the Humber (£36,376 higher) and the South East (£31,681 higher).
But while Waitrose topped the charts for adding value to properties, homes close to other reputable supermarkets also performed well. Sainsbury’s, Marks and Spencer, Tesco and, surprisingly, Iceland also led to property price hikes, with homes near Sainsbury’s boosted by £27,939, Marks and Spencer by £27,182, Tesco by £22,072 and Iceland by £20,034.
‘Discount’ supermarkets also boost prices
While you would expect an area that has a Waitrose, Sainsbury's or Marks and Spencer's to perform well, a surprising result of the result was how places with a discount supermarket also performed at a premium.
If you live near an Asda, your property would go up by £5,026, while properties near a Lidl or Aldi, will go up by £3,926 and £1,333 respectively.
The report also cites the example of the CH60 postcode area of Heswall in the Wirral, which has both an Aldi and an Iceland store. Here, the average house price is £118,000 higher than in the overall Wirral area.
Mike Songer, Lloyds Bank Mortgage director, says: "Our findings back up the so-called ‘Waitrose effect’. There is definitely a correlation between the price of your home and whether it’s close to a major supermarket or not. Our figures show that the amount added to the value of your home can be even greater if located next to a brand which is perceived as upmarket.
Of course, there are many other drivers of house prices beyond having a supermarket on your doorstep, but our research suggests that it is a strong factor."
A property chain is a line of buyers and sellers (the “links”) who are all simultaneously involved in linked property transactions. When one transaction falls through – for instance, someone can’t get a mortgage or simply withdraws their property from sale, the entire chain breaks and all the transactions are held up or even fail entirely.