Having a top end supermarket on your doorstep could add a premium to your house price, but there are also benefits to living close to a Lidl or an Aldi.
Research by Lloyds Bank has revealed having a Waitrose nearby could increase average house prices by £43,000 more than average prices in the rest of the town.
Meanwhile, a Marks & Spencer or Sainsbury’s store could add a £40,000 and £32,000 premium respectively.
Indeed, simply being close to any supermarket will see a property gain an average price increase of £21,000.
But when it comes to the supermarkets which are causing the biggest house price rises to nearby homes, the budget brands are in front.
According to Lloyds, properties near to a Lidl, Morrisons and Asda have increased by 15% or £29,000 over the past four years. While those with an Aldi nearby grew by 20% compared to the rest of the town which saw prices rise by an average of 16%. The increase for homes close to all supermarkets was 10%.
It shows the so-called ‘Waitrose effect’ may not just be limited to the premium supermarkets for long.
Andy Mason, Lloyds Bank mortgages director, said: “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.”
For anyone close to a Tesco, your house price will experience a £21,000 premium on other properties in the nearby area. Being within walking distance of a Co-op will add £21,000 and an Iceland will boost prices by £17,000.
What’s more, homes close to smaller local stores such as Little Waitrose, Sainsbury’s Local or Tesco Extra will attract higher average premiums, Lloyds discovered, with prices going up by an average of £58,000 compared to the larger superstores which add an extra £30,000.
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