03 Jul 2017
New research has found that the value of homes within easy reach of a local supermarket are an average of nearly £22,000 higher than in nearby areas.
Lloyds Bank said properties in locations with a Waitrose, Marks and Spencer, Sainsbury’s or Iceland are most likely to command a higher house price premium when compared to the wider town average.
And prices near upmarket supermarket brands can be particularly high.
The average price for homes within easy reach of a Waitrose is typically £36,480 higher.
Those living close to a Marks and Spencer have the second-highest premium, with properties worth an average of £29,992 more than homes further away, followed by Sainsbury’s (£26,081) and even discount chains like Iceland (£22,767) command a strong premium.
Areas close to budget supermarkets have seen the biggest house price rises of 11% in the last three years.
Andy Mason, of Lloyds Bank, 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 homebuyers looking for good access to local amenities.
“The ‘Waitrose Effect’ is clear - having a premium brand on your doorstep means buyers typically need to pay top prices. But the research also shows that areas with ‘budget’ stores have, on average, seen the most rapid house price growth in recent years.
“There has been some suggestion that the likes of Lidl and Aldi are increasingly locating in more affluent areas where prices are already relatively high.
"Indeed, in 2014 house prices in areas with a Lidl were, on average, £4,700 lower than in neighbouring areas; today they are £6,400 higher.”
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