It’s official – the ‘Waitrose effect’ is real, as new research has confirmed that living near a good supermarket can add upwards of £40,000 to the value of your home.
The figures, released by Lloyds Bank, show that being in close proximity to a Waitrose adds an average of £43,571 to the value of your home, while a Marks & Spencer adds a premium of around £40,135 to a property.
Sainsbury’s was shown to be the third most desirable store on the list, elevating the value of a property by an estimated £32,707.
However, it’s not just the upmarket supermarkets that can make a residence more attractive (and expensive) to prospective buyers. Being within a stone’s throw of a more affordable supermarket – particularly increasingly popular German imports like Aldi and Lidl – can also ramp house prices up. Well, we all love a bargain Jo Malone-esque candle, don’t we?
To generate the data, Lloyds compared average house prices in a town with a supermarket with average prices of homes with the same postcode. They found that while the increase for cheaper supermarkets isn’t quite as significant, a nearby Morrisons raises the value of a home by £11,346, while a Lidl generates around £5,411, an Aldi £2,301, and an Asda £1,487.
Andy Mason, Lloyds Bank mortgages director, said of the company’s findings: ‘It’s easy to assume the effect of different factors on the value of a property but this research clearly shows that there is a significant link between the convenience of a local supermarket and house prices.’
‘The Waitrose factor has been known for some time and although the likes of Aldi can’t yet boost house prices in quite the same way, the research shows that all stores are now having a positive effect on local property prices.’