According to the latest figures from Lloyds Bank, the value of your property can command an extra £22,000 on average if you live near a well-known supermarket chain.
Lloyds found out that owning a home based by a premium branded supermarket will increase the value of your home further. In fact, living within close proximity to a Waitrose store can boost the value of your property by a staggering £38,666 (10%) compared to the rest of the town that you live in.
If you own a property next to any of the following stores, the value of your home could be worth considerably more – Sainsbury’s (£27,939), Marks & Spencer (£27,182), Tesco (£22,072) and Iceland (£20,034).
Other supermarket stores which produce a lower house price premiums are Asda (£5,026), Lidl (£3,926) or Aldi (£1,333).
Mike Songer, Lloyds Bank Mortgage Director, stated: “Our findings back-up the so-called ‘Waitrose effect’. There is definitely a correlation between the price of your home and whether it’s close to a major supermarket or not. 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.”
Live near a Waitrose in the North West? Your home could be worth almost 40% more!
If you own a home in the North West which shares the same postal district as a Waitrose store, the average value of your property could command an extra £73,629, or 39% more, (£263,687 v. £190,058) than the average house price in your area. The West Midlands (£57,539), Yorkshire and the Humber (£36,376) and the South East (£31,681) are also commanding high premiums if you live in the vicinity of a Waitrose.
Chiswick commands considerable premium
If you are fortunate to live in the area of Chiswick in West London, which hosts a Waitrose, Sainsbury’s and Marks & Spencer amongst it’s number, then your home could be worth more than double that of a property in the adjacent areas. The average property price of a home in Chiswick is £961,564, which is considerably more than their nearby areas of Hounslow (£484,826), Golders’s Green (£423,180) and Belsize Park/Hampstead (£313,166).
House prices boosted by discount supermarkets too
There is also a positive impact on the value of your property if you live near a ‘discount’ supermarket. If you live near an Aldi, Iceland or Lidl then your property could be benefiting from a supermarket price boost. One example of this is Heswall, where the CH60 postcode contains an Aldi and an Iceland, which boosts house prices by £118,000 compared to the larger surrounding area of Wirral.