'Waitrose Effect' Can Help Boost Home Prices By More Than £36,000, Says Survey

'Waitrose Effect' Can Help Boost Home Prices By More Than £36,000, Says Survey
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The "Waitrose effect" can help add over £36,000 to a property price typically - while living near any national supermarket may boost a home's value by around £22,000 - research suggests.

Lloyds Bank found that homes within easy reach of a local supermarket command a premium of £21,512 on average compared with property prices in nearby areas.

Homes near a Waitrose were found to command the biggest cash premium - costing £36,480 more typically than average house prices in the wider town.

Properties close to a Marks & Spencer have the second highest premium, with homes worth an average of £29,992 more than homes further away, the research found.

Lloyds Bank compared average house prices in postal districts with a supermarket from a national chain with typical property values in the wider towns to calculate the price premium paid for homes located near supermarkets.

The research covered homes across England and Wales.

The research suggests that while living near a "premium" supermarket brand can help boost a property's value significantly, discount chains can also command a premium, with homes located near a Lidl valued at £6,416 more on average than those in the surrounding area.

Home buyers who want the convenience of living near a supermarket but do not want to pay a big house price premium may want to consider focusing their search near an Aldi.

The research suggests that properties near an Aldi can be, on average, £2,902 less expensive than those in surrounding areas.

Andy Mason, Lloyds Bank mortgages director, said: "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 home buyers 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."

Here is the average house price premium for living near a supermarket, according to the research from Lloyds Bank:

:: Waitrose, £36,480

:: Marks & Spencer, £29,992

:: Sainsbury's, £26,081

:: Iceland, £22,767

:: Tesco, £21,344

:: Co-Op, £20,687

:: Morrisons, £10,504

:: Lidl, £6,416

:: Asda, £4,117

:: Aldi, minus £2,902