This week, research by the mortgage lenders at Lloyds bank hit the headlines, after they found that living in close proximity to a supermarket can boost house prices by an average of £21,500. And if it’s a posh supermarket like Waitrose then the value of an average home could be increased by around 12% – or more £40,000.
Also on the desirable store list were Marks and Spencer (adding an average value of £40,135 to a home) and Sainsbury’s (£32,707). Further down the scale were Tesco (£21,369) Lidl (5,411) and Aldi (£2,301) with Asda at the bottom of the heap (£1,487). So we’re not sure what this means for house prices if the proposed Sainsbury’s-Asda merger goes ahead?
What does this really mean for house prices?
Obviously buyers are prepared to pay more for convenience – but the variation in prices for different stores could also be indicative of the type of area in which they are located. So it is perhaps more of a correlation than a cause.
What does it mean for home buyers?
The research is not necessarily good news for home buyers as they will potentially have to pay more for a house that is near a Waitrose even if that isn’t the reason they want to buy the house.
Speaking about the findings, Lloyds Bank mortgages director, Andy Mason, said:
“The Waitrose factor has been known for some time and although the likes of Aldi can’t yet boost house prices in quite the same way, the research shows that all stores are now having a positive effect on local property prices.”
Are you moving home in Dorset? There are Waitrose stores in Bridport and Dorchester so you might want to check out some store locations here before you buy!