Having a supermarket just down the road can obviously be very useful for shopping purposes - but a new survey has revealed that it’s also likely to increase the value of your home.
New research from Lloyds Bank has found that homes within easy reach of a local supermarket are, on average, £21,512 higher than in nearby areas.
Properties in areas 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.
For example, the average price for properties within easy reach of a Waitrose is typically £36,480 higher than the wider town average (£429,118 versus £392,939).
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.
Homes within easy reach of all four supermarket chains are trading at an average premium of 9%.
The Lloyds survey also says that areas close to budget supermarkets have seen the biggest house price rises, with growth of 11% in three years
House prices close to an Aldi, Lidl, Morrisons or Asda have grown by an average of 11%, or £21,400, since 2014.
This is a faster increase than for all supermarkets (9%) and marginally higher than for all areas in England and Wales (10%).
In postal districts with an Aldi, the average house price has grown from £178,809 in 2014 to £198,810 in 2017 – an increase of £20,000.
In addition, areas with a Lidl have seen average price grow of £23,722 (from £216,258 to £239,981).
However, in cash terms the largest price increases remain in postal districts with a Waitrose - £33,015 (from £396,104 to £429,118) or 8%.
The average house price in an area with a Waitrose store is £429,118 – the most expensive of all the chains - and more than double compared to areas with an Aldi store (£198,810), which is the least expensive. The next most expensive are areas with a Marks and Spencer (£350,263) and Sainsbury’s (£314,154).
Andy Mason Lloyds Bank mortgages director, commented: “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.”
In eight out of ten regions across England and Wales, properties command a premium price compared to other areas in the same town where there is a Waitrose.
In the South-East the premium of having a Waitrose nearby is 8.1%.