'˜Waitrose effect' can make home worth £38,000 more

Living near a supermarket can help to boost the value of your home by £22,000 typically, research has found.

Homes near a Waitrose are typically worth £38,666 more. Picture: TSPL

The “Waitrose effect” could help to add nearly £40,000 to the value of a home, the study from Lloyds Bank suggests.

But it is not just premium brand supermarkets that can add value to a nearby property – living near an outlet of discount chains Aldi and Lidl could also help to boost the value of a property, according to the findings.

Lloyds Bank 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.

The research found that living near any supermarket chain could add around £22,000. Homes near a Waitrose are typically worth £38,666 more – about 10 per cent – 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.

Homes near an Asda are worth around £5,000 more than those in surrounding locations, while those near a Lidl have a premium of around £4,000 and properties near an Aldi are valued at around £1,300 higher than homes in the wider area.

Mike Songer, Lloyds Bank 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.”

Earlier this month Lidl was named supermarket of the year for the first time by the Good Housekeeping Institute, following the German chain’s efforts to target middle Britain shoppers.

The two runners up were Aldi and Waitrose, leaving the “big four” of Tesco, Asda, Sainsbury’s and Morrisons out of the picture.

Lindsay Nicholson, editorial director of Good Housekeeping magazine, said: “The awards give a fascinating snapshot of consumer tastes and preferences.

“We are seeing a distinct trend towards quality and ­flavour combined with a drive for value with Lidl being named Supermarket of the Year for the first time.”