Just last month we heard how spending £40 on your home could boost its value by thousands.
Now it appears that if you’re luckily enough to own a house, and it’s within the vicinity of a particular supermarket – its price tag could jump by a whopping £36,480.
New research by Lloyds Bank illuminates the famed “Waitrose effect” on property value, with houses near to the upmarket supermarket commanding a premium price compared to homes in other areas of the same town.
This impact is particularly potent in the north west of Britain. Homes here with a local Waitrose store come with an asking price that is on average £80,272 (38%) more than similar houses in the same region without proximity to the high-end chain.
Lloyds researchers looked at average house prices in England and Wales with a national supermarket nearby, and compared them to the value of properties in the wider region.
Hot on the heels of Waitrose in terms of enhancing property prices is another swanky supermarket, Marks and Spencer.
Homes close to M&S are worth on average £29,992 more than properties further away, according to the survey.
Interestingly, houses close to budget supermarket chains including Aldi, Lidl, Morrisons and Asda, showed the fastest value growth in the past three years.
The going rate for these homes has grown by an average of 11%, or £21,400, since 2014. This is a more rapid increase than for all supermarkets (9%) put together.
In postal districts with an Aldi, the average house price has rocketed from £178,809 in 2014 to £198,810 in 2017 – an increase of £20,000. Areas with a Lidl have seen an average price growth of £23,722 (from £216,258 to £239,981).
Properties with a Waitrose nearby still command the highest value in cash terms, however.
“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,” says Andy Mason, Lloyds Bank mortgages director.
“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.”
With the housing market spiralling upwards – especially in London – buying a home seems an impossible dream for many young people. Read our tips on how to get on the property ladder right here.