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The "Waitrose Effect"?

Sunday, June 25, 2017

The "Waitrose effect" can help add over £36,000 to a property price typically - while living near any national supermarket may boost a home's value by around £22,000 - research suggests.


Lloyds Bank found that homes within easy reach of a local supermarket command a premium of £21,512 on average compared with property prices in nearby areas. Homes near a Waitrose were found to command the biggest cash premium - costing £36,480 more typically than average house prices in the wider town. Properties close to a Marks & Spencer have the second highest premium, with homes worth an average of £29,992 more than homes further away, the research found.
Lloyds Bank compared average house prices in postal districts with a supermarket from a national chain with typical property values in the wider towns to calculate the price premium paid for homes located near supermarkets.


The research suggests that while living near a "premium" supermarket brand can help boost a property's value significantly, discount chains can also command a premium, with homes located near a Lidl valued at £6,416 more on average than those in the surrounding area. Home buyers who want the convenience of living near a supermarket but do not want to pay a big house price premium may want to consider focusing their search near an Aldi. The research suggests that properties near an Aldi can be, on average, £2,902 less expensive than those in surrounding areas.


Andy Mason, Lloyds Bank mortgages director, said: "With homes in areas close to major supermarkets commanding a premium of £22,000, the convenience of doing weekly shopping within easy reach may well be a pull for many home buyers looking for good access to local amenities."

 

Here is the average house price premium for living near a supermarket, according to the research from Lloyds Bank:

  1. Waitrose, £36,480
  2. Marks & Spencer, £29,992
  3. Sainsbury's, £26,081
  4. Iceland, £22,767
  5. Tesco, £21,344
  6. Co-Op, £20,687
  7. Morrisons, £10,504
  8. Lidl, £6,416
  9. Asda, £4,117
  10. Aldi, minus £2,902

Article and quotes taken in part from:
www.independent.co.uk


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