Living near a supermarket can add £22,000 to your house price

And the 'Waitrose Effect' can boost your property value even further, by nearly £40,000, according to Lloyds Bank.

What’s the latest?

Homes located close to a well-known supermarket can cost a cool £22,000 more than those in the surrounding area.

And upmarket supermarket brands can boost nearby house prices even more. At an eye-watering £38,666, homes within easy reach of a Waitrose branch can command the highest price premium.

According to Lloyds Bank's research in England and Wales, other supermarket chains that can drive significant premiums include:
•Sainsbury’s: £27,939
•Marks & Spencer: £27,182
•Tesco: £22,072
•Iceland: £20,034

Why is this happening?

Good transport links and schools as well as low crime are typically at the top of a buyer's wish list when searching for a new home.

And Lloyds Bank suggests that proximity to supermarkets is also a priority, with significant premiums attached to convenience.

Mike Songer, Lloyds Bank mortgage director, said: “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."

Who does it affect?

At £476,738, buyers in Chiswick, west London – home to a Waitrose, Sainsbury’s and Marks & Spencer – can expect to pay the highest average house price premium when compared with the surrounding area.

The typical property value in the leafy neighbourhood is £961,564 – almost DOUBLE the average for the wider area of Hounslow (£484,826).

And outside southern England, buyers in the Cheshire town of Wilmslow will have to fork out an average £277,028 premium. Waitrose, Sainsbury’s, Marks & Spencer, Tesco and Lidl are all located in the town.

Sounds interesting. What’s the background?

The supermarket ‘bounce’ is not restricted to homes near a Waitrose, Sainsbury’s or Marks & Spencer store. Discount chains, including Lidl and Aldi, can also boost house prices in the neighbourhood, with an average premium of £3,926 and £1,333 respectively.

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