On average property in close proximity to a high-end retailer like Marks and Spencers, House of Fraser and Waitrose gets sold for on average 15% more than in the wider area, hybrid estate agent Emoov has found.
While the wider areas as a whole were still home to an affluent average property price tag of £538,292, this increased to £632,100 when looking at the immediate vicinity surrounding a Marks and Spencer store.
The largest gap was around the Heswall Simply Food in Merseyside, where properties in CH60 where the store is located go for £403,277 compared to just £160,053 in the wider Merseyside area – a difference of 60%.
Russell Quirk, founder and chief executive of Emoov.co.uk, said:“The Waitrose effect and the impact of other high-end outlets have long been attributed to higher house prices, and this is true to some extent.
“These stores are obviously located in areas home to their target demographic, with a more abundant additional income, more expensive homes and so on, but a well-populated high-street can help stimulate the surrounding property market.
“This is largely because home buyers crave the convenience of nearby amenities and while it is unlikely that the closure of a single shop will drastically impact house prices, a number of household names vanishing from our high streets could see surrounding property prices start to reduce.
“Ironically, it’s this demand for greater convenience that is resulting in the closure of these retailers, as the consumer mindset is moving more and more towards the online space.”
With convenience key for home buyers in the capital and property prices often influenced as a result, the cost of living nearby a London based Marks and Spencer was 36% higher than prices in the wider area.
The Notting Hill Gate Simply Food was home to the largest uplift, again at 60%, with the Simply Food in Tottenham Court Road also high with a 49% difference to the wider area.
However with news that M & S are planning to close a number of stores across the nation, along with a number of other high-end retailers such as House of Fraser and Waitrose, local property prices start to fall as a result.
Quirk added: “Of course, the real casualty of this shift in consumer behaviour isn’t Marks and Spencer, or Waitrose, it’s the staff due to lose their jobs as a result of these store closures.
“While technology can drastically improve how we do things in our day to day lives, there is no substitute for that human touch and it’s the integration of great staff with innovative technology that should be the focus for these retailers.”