An interesting piece of research released recently by Lloyds Bank has revealed that living close to a well-known supermarket chain can add as much as £22,000 on average to the value of your home.
This price increase can apparently be even higher when the property is located near to a supermarket perceived to be a ‘premium brand’, with properties close to a Waitrose store receiving an average boost of £38,666 (or 10%) higher than the wider town in which they are located – the highest amongst the national supermarkets.
In addition to Waitrose, properties near a Sainsbury’s, Marks and Spencer, Tesco or Iceland also command the highest house price premiums - Sainsbury’s (£27,939), Marks and Spencer (£27,182), Tesco (£22,072) and Iceland (£20,034).
At the other end of the scale, the supermarkets associated with the lowest house price premiums include Asda (£5,026), Lidl (£3,926) or Aldi stores (£1,333).
"Our findings back-up the so-called ‘Waitrose effect’,” explained Mike Songer, Lloyds Bank Mortgage Director. “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," he added.
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