According to a survey conducted by Lloyds Bank, living in close proximity to a well-known supermarket chain can add an average of £22,000 to the value of a home.
The study found that living near premium brands adds the most value to a property, with homes close to a Waitrose store gaining an average boost of nearly £40,000, which equates to a massive 8%! Properties near a Sainsbury’s, Marks & Spencer, Tesco, or Iceland also command high house price premiums, ranging between £20,000 and £28,000 extra.
The effect of living near a supermarket doesn’t end with those brands either. Living near an Asda, Lidl, or Aldi can add between £1,300 and £5000 as well.
Mortgage director of Lloyds bank, Mike Songer, said “Our findings back up the so-called ‘Waitrose effect’. There is definitely a correlation between the price of your home and whether or not it’s close to a major supermarket.
“Our figures show that the amount added to the value of your home can be even greater if located next to a brand which is perceived as upmarket. Of course, there are many other drivers of house prices beyond having a supermarket on your doorstep, but our research suggests that it is a strong factor.’’
If you live near a McDonald’s, for example, you’ll be in the money in when it comes to buying cheap meals for the family, but quids out when it comes to living in a sought-after residential area. The McDonald’s effect, by contrast, subtracts 24 per cent. The strongest brand of all is Zaza, the popular Italian restaurant chain, which, it is claimed, adds an astonishing 42 per cent!
‘The findings were not a surprise to me,’ says Darren Best, managing director of Commercial Property Agents, Savoy Stewart.
‘Previous studies have highlighted the Waitrose effect, but this one indicates an overall High Street brand effect which extends well beyond Waitrose and encompasses both luxury and value brands.’
If you live near a supermarket and are curious about the value of your home, why not use our free online valuation too to get an instant estimate?