Living near a supermarket can seriously boost the value of your home, with one particular chain adding nearly £40,000.
Having a store close to where you live typically increases the value by £22,000 but the ‘Waitrose effect’ nearly doubles this premium, a study from Lloyds Bank suggests.
Homes near a Waitrose are worth £38,666 or 10 per cent more than those in the surrounding area.
Properties near a Sainsbury's or a Marks & Spencer command a premium of around £27,000, while those near a Tesco are worth around £22,000 more than homes in the wider area.
While the lift in value is lower, living near discount chains Aldi and Lidl can also help boost the value of a property according to the findings.
Lloyds compared average house prices in postal districts with a supermarket from a national chain with typical property values in the wider towns to calculate the price premium paid for homes located near supermarkets.
Mike Songer, Lloyds’ mortgage director, said: "Our findings back-up the so-called 'Waitrose effect'. 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."
Here are the average house prices in postal districts located near a particular supermarket, followed by the average price in the surrounding town, and the premium people pay to live near a particular supermarket, in percentage and cash terms, according to Lloyds Bank:
Waitrose
- £425,428
- £386,763
- 10%
- £38,666
Sainsbury's
- £316,056
- £288,117
- 10%
- £27,939
Marks & Spencer
- £342,077
- £314,895
- 9%
- £27,182
Tesco
- £272,288
- £250,216
- 9%
- £22,072
Iceland
- £257,055
- £237,021
- 8%
- £20,034
Co-op
- £238,448
- £220,545
- 8%
- £17,904
Morrisons
- £222,462
- £211,904
- 5%
- £10,558
Asda
- £207,771
- £202,745
- 2%
- £5,026
Lidl
- £236,127
- £232,201
- 2%
- £3,926
Aldi
- £196,502
- £195,169
- 1%
- £1,333
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