Property worth more near a Waitrose

If your home is near a Waitrose, for instance, it will be worth £38,666 more, on average.

It turns out that the price of your home is likely to be higher if you live near a supermarket, but a lot depends on what the supermarket is, Lloyds Bank has found.

If your home is near a Waitrose, for instance, it will be worth £38,666 more, on average.

But it’s not so bad if you live near a Sainsbury’s, Marks and Spencer or Tesco because prices are likely to be £27,939, £27,182 and £22,070 higher as a result, respectively.

If the local supermarket is an Iceland, the value of your home is likely to be £20,034 higher, but a mere £5,026 more if it’s near Asda, £3,926 if it’s near Lidl and a tiny £1,333 more if it’s near an Aldi store.

They call it the ‘Waitrose effect’.

Mike Songer, Lloyds Bank mortgage director, said: “Our findings back-up the so-called ‘Waitrose effect’. There is definitely a correlation between the price of your home and whether it’s close to a major supermarket or not. Our figures show that the amount added to the value of your home can be even greater if located next to a brand which is perceived as upmarket. Of course, there are many other drivers of house prices beyond having a supermarket on your doorstep, but our research suggests that it is a strong factor.”

But there may be another way of looking at it. It is human nature to confuse cause and effect, if there are more doctors in an area where a disease is rife, is the disease caused by the number of doctors, or is the relationship different?

Perhaps a supermarket, such as Waitrose, is likely to choose to locate to a more upmarket region.

No doubt proximity to a supermarket does influence house prices, but it is surely the case that supermarkets partly choose the location of their stores based on the proximity of their target audience.

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Written by: Houseladder