Living close to a supermarket can boost
house prices by £15,000 as potential buyers are prepared to pay a
premium for convenience, research showed today.
A home that is within easy reach of a supermarket typically costs 7 per cent more, the equivalent of £15,331 on average, than properties in other areas of the same town, according to Lloyds Bank.
But some supermarket chains have a bigger impact on house prices than others, with consumers prepared to pay most to be close to a branch of Waitrose, at an average of 12 per cent of £38,831.
Sainsbury’s is also popular, boosting property values locally by around 10 per cent or £24,507, while being near a Tesco typically adds a premium of 8 per cent or £17,124.
By contrast, property values are actually likely to be lower than comparable homes in the surrounding area if they are near a discount retailer.
Being close to a branch of Aldi typically knocks 3 per cent off a property’s value, while proximity to a Lidl store depresses prices by around 2 per cent.
Being near a Marks & Spencer or Co-op has the potential to boost property values by 7 per cent, but a branch of Iceland or Morrisons will only raise house prices by 4 per cent and 3 per cent respectively.
Having a local branch of Asda appeared to have no impact on nearby property prices at all.
Andy Hulme, Lloyds Bank mortgages director, 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.
“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.”
Being close to a supermarket had the biggest impact on house prices in the West Midlands, with homes in areas with a Waitrose costing an average of 37 per cent or £66,130 more than properties that were not close to one of the supermarket’s branches.
A home that is within easy reach of a supermarket typically costs 7 per cent more, the equivalent of £15,331 on average, than properties in other areas of the same town, according to Lloyds Bank.
But some supermarket chains have a bigger impact on house prices than others, with consumers prepared to pay most to be close to a branch of Waitrose, at an average of 12 per cent of £38,831.
Sainsbury’s is also popular, boosting property values locally by around 10 per cent or £24,507, while being near a Tesco typically adds a premium of 8 per cent or £17,124.
By contrast, property values are actually likely to be lower than comparable homes in the surrounding area if they are near a discount retailer.
Being close to a branch of Aldi typically knocks 3 per cent off a property’s value, while proximity to a Lidl store depresses prices by around 2 per cent.
Being near a Marks & Spencer or Co-op has the potential to boost property values by 7 per cent, but a branch of Iceland or Morrisons will only raise house prices by 4 per cent and 3 per cent respectively.
Having a local branch of Asda appeared to have no impact on nearby property prices at all.
Andy Hulme, Lloyds Bank mortgages director, 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.
“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.”
Being close to a supermarket had the biggest impact on house prices in the West Midlands, with homes in areas with a Waitrose costing an average of 37 per cent or £66,130 more than properties that were not close to one of the supermarket’s branches.
Proximity to a Waitrose also had a big impact on house prices in the north west, boosting them by 33 per cent or £63,921, and London, adding 14 per cent or £76,188.
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