Living near Waitrose boosts house prices

By Michael Stones contact

- Last updated on GMT

Living near a Little Waitrose can help house prices a lot, claims Lloyds Bank
Living near a Little Waitrose can help house prices a lot, claims Lloyds Bank

Related tags: Wal-mart, Supermarket, Sainsbury

Houses near a Waitrose store are worth 12% – or £38,831 – more than those elsewhere, while proximity to an Aldi shop can cut their price by 3%, according to research from Lloyds Bank.

Properties near Sainsbury sold for 10% – £24,507  – more and houses near a branch of Tesco were worth an 8%  – or £17,124 – than those in other locations.

Overall, the average house price in areas offering residents easy access to a local supermarket was about 7% – or £15,331 – more than other properties.

Lloyds Bank mortgages director Andy Hulme said: “It’s easy to assume the effect of different factors on the value of a property but this research enables us to clearly see that there is a significant association between the convenience of a local supermarket and house prices.

‘Commanding an average of over £15,000’

“With homes in areas close to national supermarkets commanding an average of over £15,000 more than those in the surrounding areas, having a grocery shop within easy reach appears to be high on the list for homebuyers looking for good access to local amenities.”  

But closeness to some retailers can reduce the value of houses, the researchers claimed. Promixity to a branch of Aldi was said to reduce house prices by 3% and to a Lidl store by 2%.

However, Asda had no affect on local house prices.

The researchers reached their conclusions after comparing average prices in postal districts that included a national supermarket with other properties in the town in which they were located. That comparison enabled them to identify the average house price premium or discount associated with the proximity to some of the UK’s largest grocery retailers, said Lloyds. 

Valuable neighbours

  • Waitrose store adds 12% or £38.8k
  • Sainsbury store adds 10% or £24.5k
  • Tesco store adds 8% or £17.1k

Largest grocery retailers

The researchers also studied locations with the highest area to town house price premium. Chiswick in Hounslow, Ponteland in Newcastle and Golders Green in Barnet commanded the greatest average property prices when compared with the surrounding town average.

The average house price in Chiswick, with local access to a Waitrose, Sainsbury and Marks & Spencer, was £918,287. That represented a premium of 117% or £495,601 compared with the average price for the borough of Hounslow.

Not so valuable neighbours

  • Aldi store cuts  3%
  • Lidl store cuts 2%
  • Asda store zero affect

Ponteland, with a Waitrose, Sainsbury and Co-op in the neighbourhood, and Golders Green, which has a Sainsbury and Marks & Spencer, have premiums of 110% – or £195,623 – and 88% – or £456,829 – respectively.

The greatest regional house price premium linked to supermarket location was in the West Midlands, where houses close to a local Waitrose commanded an average 37% – £66,130 – more than the surrounding town.

That was followed by the same supermarket in the North West 33% – or £63,921 – and London 14% –  or £76,188.

More information on the Lloyds Bank report is available here​. 

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4 comments

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Statistical drivel

Posted by David Roberts,

I agree with all the other comments, this is an article with no basis in reality at all. A statistically nonsensical study that I am surprised Lloyds put their name to. Laughable.

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Methodology?

Posted by Jake Staines,

Agreed with the previous two comments - assuming that you can measure the difference between one postcode region and the average for an entire town and ascribe it to a single factor with no knowledge of long-term trends or other influences seems asinine.

Did these 'researchers' track any cases where a new Waitrose had opened and house prices had gone up? Or an Aldi was built and house prices dropped accordingly? Or is this just an attention-grabbing advertisement for Lloyds mortgages?

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IT'S THE DEMOGRAPHIC!

Posted by Charles Knight.,

Surely this is a function of Waitrose stores being located in communities which share their customer demographic?

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