Proximity to good transport links, reputable schools and local amenities have long been staples on many house-hunters’ checklists. But now it appears that specific amenities have more sway on a would-be resident than others; namely, Waitrose.
A study by Lloyds Bank highlight a new wave of shopping exclusivity, where vendors can expect to add 10% onto the price of the property they’re selling if it’s close to a Waitrose, which based on averages could be close to an extra £40,000.
Homes close to a Sainsbury’s could see an average of £29,939 added onto the valuation, followed by Marks & Spencers with £27,182, Tescos with £22,072, and Iceland with £20,034.
The figures weren’t quite so impressive when it came to budget supermarkets Aldi and Lidl, and price-pounding Asda, which added just £1,333, £3,926 and £5,026 respectively.
Dubbed the ‘Waitrose effect’, the figures were largely dependent on region, with the North West seeing the most dramatic effects with an average of £73,629 added to properties within close proximity to a Waitrose.
Property in the West Midlands benefitted from prices that were on average £57,539 higher, Yorkshire and the Humber came in at £36,376 and the South East £31,681.
It’s assumed that the variances are largely due to the numbers of Waitrose supermarkets in each region, with far fewer in the north of England compared to the south, so the shop is deemed to be more exclusive.
Mike Songer, Lloyds Bank mortgage director, said: “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.”
If your property is worth more than it used to be due to changes in local amenities, you may be underinsured. It’s worth reviewing your property and contents value regularly to ensure it’s covered correctly – our team of experienced personal client managers can help with this.
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