Owning a home in walking distance of a leading supermarket could mean that your property is worth as much as £21,500 more than other homes, new research has revealed.
A report by Lloyds Bank found that homes in neighbourhoods with a Marks & Spencer, Sainsbury’s or Waitrose are most likely to command a higher than average price. But homes near budget supermarkets have seen the biggest boost in value over the past four years.
Homes near a Waitrose enjoy the biggest premium, selling for £43,571 (12%) more than average house prices in the neighbourhood. This is followed by properties close to a Marks & Spencer, with a premium of £40,135, and Sainsbury’s (£32,707).
Homes close to a Tesco are worth over £21,369 more than other properties in the neighbourhood, followed by Co-op (£21,020), and Iceland (£17,445).
And it seems that size doesn’t matter, as homes near smaller stores such as a Little Waitrose, Sainsbury’s Local or Tesco Extra enjoy a higher average premium of £58,109 compared with a larger superstore (£30,580).
Boost to homes near budget supermarkets
Properties close to budget supermarkets have seen the biggest house price rise, with those near Aldi, Asda, Lidl, and Morrisons having gone up in value by an average 15% (£29,316) over the past four years, compared to 10% for all supermarkets.
Over the past four years, average house prices close to an Aldi grew by a fifth (20%, from £178,809 to £213,765) a much faster increase than the rest of the town (16%, from £182,395 to £211,463).
Meanwhile, those near a Co-op went up, on average, by 16% (from £224,679 to £259,969) and homes near Morrisons were up 14% (from £203,756 to £233,261).
And while four years ago, living close to an Aldi meant that you would get £3,586 less for your home than the rest of the town, now house prices close to this budget supermarket will fetch an average of £2,301 more than the surrounding area.
Homeowners living near a Lidl will find their properties could fetch an average of £5,411 more than other properties in nearby.
Andy Mason, mortgages director at Lloyds Bank, says: “This research clearly shows that there is a significant link between the convenience of a local supermarket and house prices.
“The Waitrose factor has been known for some time and although the likes of Aldi can’t yet boost house prices in quite the same way, the research shows that all stores are now having a positive effect on local property prices.”