Lloyds Bank

Nearby supermarket can add £22K to house price

Homes within easy reach of a local supermarket are valued, on average, £21,512 higher than in nearby areas, according to new research from Lloyds Bank.

Properties near to a Waitrose, Marks and Spencer, Sainsbury’s or Iceland are the most likely to command a higher house price premium when compared to the wider town average.

Areas with upmarket supermarket brands can have particularly high house prices.

For example, houses close to a Waitrose are typically £36,480 higher than the wider town average, while ASDA provides the lowest increase in residential property value at £4,117.

Andy Mason, mortgages director at Lloyds Bank, 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 homebuyers 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.”

House prices close to an Aldi, Lidl, Morrisons or Asda have increased by an average of 11% - or £21,400 - since 2014, a faster increase than for all supermarkets (9%).

“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.”

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