'Marks & Spencer effect' pushes property prices up 15%

10 July 2018
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Property close to high-end shops will fetch more than neighbouring areas, with homes close to Marks & Spencer worth 15% more than properties further afield, according to analysis of property data.

Hybrid estate agent Emoov analysed data on property portal Zoopla on prices of properties around the 916 Marks & Spencer stores across the UK and compared them to properties in the wider area. While the nearby neighbourhoods still have average price tags of £538,292, this rises to £632,100 for properties close to a Marks & Spencer store.

In London, the price gap is even more marked, with homes close to a Marks & Spencer in the capital typically commanding 36% more than the wider area, but this can be much higher. Marks & Spencer’s Simply Food in Notting Hill Gate has led to properties in nearby roads being 60% more than other streets in the neighbourhood.

Similarly, in Merseyside, properties in the CH60 postcode where Marks & Spencer’s Heswall Simply Food is located will sell for £403,277 compared to just £160,053 in the wider area – again a difference of 60%.

Emoov warns that the news that 100 Marks & Spencer stores are to close over the next four years, along with Waitrose closing five stores and House of Fraser closing 31 stores could see local property prices start to fall.

Russell Quirk, chief executive of eMoov, says: “The ‘Waitrose effect’ and the impact of other high-end outlets have long been attributed to higher house prices, and this is true to some extent. These stores are obviously located in areas home to their target demographic, with a more abundant additional income, more expensive homes and so on, but a well-populated high-street can help stimulate the surrounding property market.

“This is largely because home buyers crave the convenience of nearby amenities and while it is unlikely that the closure of a single shop will drastically impact house prices, a number of household names vanishing from our high streets could see surrounding property prices start to reduce.” 

AreaAverage house price around M&S storesAverage house price in the wider areaDifference
UK£632,100£538,29215%
London£1,443,601£919,44136%

Source: Zoopla data for eMoov research, June 2018

Largest Gaps

Store NameOutcode (first part of postcode)Average priceWider locationAverage priceDifference
HESWALL SIMPLY FOODCH60£403,277MERSEYSIDE£160,05360%
NOTTING HILL GATE SIMPLY FOODW11£1,963,589NOTTING HILL GATE£782,12560%
MALONE LISBURN RD SIMPLY FOODBT9£393,995BELFAST£158,74960%
OMAGHBT79£353,805OMAGH£154,99856%
TOTTENHAM COURT RD SIMPLY FOODW1T£2,101,974CAMDEN£1,079,79749%
BEARSDEN SIMPLY FOODG61£334,797GLASGOW£172,44748%
CANNIESBURNG61£334,797GLASGOW£172,44748%
GREAT WESTERN RD GLASGOWG12£333,522GLASGOW£172,44748%
COOKSTOWN SIMPLY FOODBT80£159,325COOKSTOWN£82,54548%
PANTHEON 173 OXFORD STREETW1D£2,101,974COVENT GARDEN£1,103,61647%
ORPINGTON NUGENT PARKBR5£428,617ORPINGTON NUGENT£225,84247%
FORTH VIEW QUEENSFERRYEH30£234,941QUEENSFERRY£125,44347%
GLASGOW BYRES ROAD SIMPLY FOODG12£321,569GLASGOW£172,44746%
COLLIERS WOODSW19£818,394COLLIERS WOOD£441,26846%
MERE GREEN FOODHALLB74£395,345WEST MIDLANDS£218,50645%
SHEFFIELD ECCLESALL RD SIMPLY FOODS11£340,086SHEFFIELD£190,09444%
CHRISTIE'S HOSPITALM20£331,297MANCHESTER£187,08044%
DIDSBURY SIMPLY FOODM20£331,297MANCHESTER£187,08044%
HARBORNE SIMPLY FOODB17£327,675BIRMINGHAM£192,38441%
CHORLTON-CUM-HARDY FOODHALLM21£313,150MANCHESTER£187,08040%

Source: Zoopla data for eMoov research, June 2018

Comments

In reply to by anonymous_stub (not verified)

So are house prices increasing because Marks & Spencer put a store in amongst them, or do Mark & Spencers put the in stores in amongst the higher value properties? I suspect the latter.

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