Waitrose attracts the largest premium, lifting house prices in the area by an average of £43,571, followed by Marks & Spencer at £40,135.
Proximity to a high-end supermarket can boost local house prices by more than £40,000.
According to mortgage lender Lloyds Bank, living near a supermarket adds an average £21,500 premium to property values.
But there is considerable variation according to the brand, with Waitrose having the biggest impact, lifting house prices in the vicinity by an average of £43,571 or 12%.
Other premium brands have a similar impact, with homes within walking distance of a Marks & Spencer costing around £40,135 more than properties in the surrounding area. And proximity to a Sainsbury’s lifts house prices by £32,707, compared with £21,369 for a Tesco.
At the other end of the scale, having a local Asda adds an average of only £1,487 to a property’s value, while an Aldi or Lidl will increase the sale price by just £2,301 and £5,411 respectively.
Why is this happening?
Buyers are typically prepared to pay more for a property in a convenient location, and having a supermarket nearby can boost the appeal of some homes.
That said, the higher sums paid for properties close to a Waitrose or Marks & Spencer is likely to be a reflection of an already desirable area, rather than premium buyers being prepared to pay more just to be close to one of these brands.
The research also found that smaller stores, such as a Little Waitrose or Sainsbury’s Local, gave property values the biggest boost at £58,109, although this may reflect the fact that these stores are more likely to be in urban areas, where property prices are typically higher.
Above: There's a Waitrose at the end of the road that this pristine four-bedroom semi-detached house in West Wimbledon sits on.
Who does it affect?
The research does not bode well for buyers who want the convenience of a local supermarket - particularly a premium brand - as it indicates they will have to be prepared to pay more for their home.
For those struggling to buy, they may be able to find a more affordable home if they are prepared to drive to do their weekly shop.
What’s the background?
While proximity to a high-end brand may command the largest premium, properties close to cheaper supermarkets have enjoyed the biggest price rises in the past four years.
The value of properties close to a Lidl, Aldi, Morrisons or Asda have increased by an average of 15% during the period, compared with an average rise of 10% for homes close to any supermarket.
Andy Mason, Lloyds Bank mortgages director, said: “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.”
Martin Roberts gives his top tip for property investment...
Top 3 Takeaways
- Living near a supermarket adds an average premium of £21,500 to property values
- Waitrose attracts the largest premium, lifting house prices in the vicinity by an average of £43,571, followed by Marks & Spencer at £40,135
- But properties close to budget supermarkets have enjoyed the biggest price rises in the past four years
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