Location, location, location, as we know, is a major factor when deciding to buy a home, but a location is defined by its surroundings. The brands that are located on your local high street can also impact on the price of property. The ‘Waitrose Effect’, as it has been nicknamed, is said to typically add over £36,000 to the property price.
According to recent research by Lloyds Bank, having a home within easy distance of a local supermarket adds value to your property.
But just how much is living near a supermarket worth?
Waitrose came out on top with just over £36,000, M&S was just behind with £29,992, and Sainsbury’s at £26,081. At the bottom end of the scale are Asda, Lidl, and Morrisons, but don’t let the figures fool you. In 2014, prices of houses close to a Lidl were £4,700 lower on average than other neighbouring areas, but this has since risen, and they are now £6,400 higher.
“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. 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,” said Andy Mason, Mortgages Director at Lloyds Bank.
Could the changing perception of stores such as Lidl have something to do with their change in fortune with regard to house prices? The company have been working hard to emphasise the quality of the produce they sell, rather than how much it costs. Their campaign #LidlSurprises has changed our understanding of where their produce comes from, and their newest campaign ‘Big on quality, Lidl on price’ stresses how much more you get for your money without sacrificing on quality.
One thing that the Lloyds research does demonstrate is our need for convenience. We want everything at our fingertips, and this includes a desire to shop locally. With many of us now preferring to do a number of little shops each month and buying fresh, rather than the traditional ‘big shop’, having a store close at hand has become a ‘must have’ for potential buyers.
At Franklyn James, we know the importance of highlighting the benefits not just of your property, but of its location and the facilities that are close by. You don’t just live in a property, you move into an area, and become part of the community. In today’s property market it really is all about location, convenience, and your local supermarket.
For advice on selling your home in today’s market, contact a member of our sales team on 020 7005 6080.