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

Published by Hannah Nemeth on 10 July 2018.
Last updated on 10 July 2018

Marks & Spencer

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.” 

Area Average house price around M&S stores Average house price in the wider area Difference
UK £632,100 £538,292 15%
London £1,443,601 £919,441 36%

Source: Zoopla data for eMoov research, June 2018

Largest Gaps

Store Name Outcode (first part of postcode) Average price Wider location Average price Difference
HESWALL SIMPLY FOOD CH60 £403,277 MERSEYSIDE £160,053 60%
NOTTING HILL GATE SIMPLY FOOD W11 £1,963,589 NOTTING HILL GATE £782,125 60%
MALONE LISBURN RD SIMPLY FOOD BT9 £393,995 BELFAST £158,749 60%
OMAGH BT79 £353,805 OMAGH £154,998 56%
TOTTENHAM COURT RD SIMPLY FOOD W1T £2,101,974 CAMDEN £1,079,797 49%
BEARSDEN SIMPLY FOOD G61 £334,797 GLASGOW £172,447 48%
CANNIESBURN G61 £334,797 GLASGOW £172,447 48%
GREAT WESTERN RD GLASGOW G12 £333,522 GLASGOW £172,447 48%
COOKSTOWN SIMPLY FOOD BT80 £159,325 COOKSTOWN £82,545 48%
PANTHEON 173 OXFORD STREET W1D £2,101,974 COVENT GARDEN £1,103,616 47%
ORPINGTON NUGENT PARK BR5 £428,617 ORPINGTON NUGENT £225,842 47%
FORTH VIEW QUEENSFERRY EH30 £234,941 QUEENSFERRY £125,443 47%
GLASGOW BYRES ROAD SIMPLY FOOD G12 £321,569 GLASGOW £172,447 46%
COLLIERS WOOD SW19 £818,394 COLLIERS WOOD £441,268 46%
MERE GREEN FOODHALL B74 £395,345 WEST MIDLANDS £218,506 45%
SHEFFIELD ECCLESALL RD SIMPLY FOOD S11 £340,086 SHEFFIELD £190,094 44%
CHRISTIE'S HOSPITAL M20 £331,297 MANCHESTER £187,080 44%
DIDSBURY SIMPLY FOOD M20 £331,297 MANCHESTER £187,080 44%
HARBORNE SIMPLY FOOD B17 £327,675 BIRMINGHAM £192,384 41%
CHORLTON-CUM-HARDY FOODHALL M21 £313,150 MANCHESTER £187,080 40%

Source: Zoopla data for eMoov research, June 2018

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So are house prices

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.