Having a supermarket nearby can be useful when you have run out of milk or eggs, but did you know it can also be of benefit to your property?
Research from Lloyds Bank has found that living near a local supermarket can push up your property’s value by £21,500 on average compared with homes in nearby areas without one.
Using Land Registry data, the bank took the average prices of boroughs with a supermarket and compared it to those without.
It found all supermarkets will provide a boost in value but there are certain brands that will add a premium to your property price tag, according to the research.
Homes in areas with a Waitrose, Marks & Spencer or Sainsbury’s are most likely to command a higher house price premium when compared to the wider town average.
The “Waitrose effect” commands the biggest cash premium – costing 12% more than average house prices in the wider town at £420,112 v. £376,540, a premium of £43,571, followed by properties close to a Marks & Spencer with a premium of £40,135 and Sainsbury’s with £32,707.
Homes within easy reach of all three supermarket chains are trading at an average premium of 12%.
But it’s homes near to budget supermarkets which were found to have seen the biggest house price rise: properties near to Lidl, Aldi, Morrisons and Asda have increased 15% (£29,316) over the past four years. This is a faster increase than for all supermarkets (10%). Showing houses near discount stores can also be popular and the cheaper supermarkets are catching up fast.
There are plenty of other reasons to choose a property other than the local supermarket and first you need to ensure you can get a mortgage.
Speak to your financial adviser for help getting on the property ladder.