‘Waitrose effect’ drives up house prices

30 May 2017
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If you live near a Waitrose, your house will typically cost £36,480 more than homes in the surrounding area, new research from Lloyds Bank has revealed.

A property close to a Waitrose store typically costs £429,118 – more than double compared to areas with an Aldi store (£198,810).

Lloyds found that in eight out of 10 regions across England and Wales, properties close to a Waitrose have added value. This can be seen in particular in the North West, where areas with a local Waitrose store in the region have an average price that is £80,272 (38%) more than the surrounding town.

Homes near a Marks & Spencer have the second highest premium, with properties typically costing £29,992 more than properties in surrounding areas, with the average home costing £350,263.

Homes near budget stores also see uplift

But, according to Lloyds, it’s not just homes near upmarket supermarkets that are seeing price hikes: house prices close to budget stores Aldi, Lidl, Morrisons and Asda have gone up by 11% – or £21,400 on average – since 2014. This is a faster increase than for all supermarkets (9%)

In postcodes with an Aldi, property prices have typically gone up from £178,809 in 2014 to £198,810 in 2017, while areas with a Lidl have seen prices rise from £216,258 to £239,981.

Andy Mason Lloyds Bank mortgages director, says: “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.

“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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