How do supermarkets affect the prices of local UK property
The list of amenities that people want to have near to their home is a long one. Good transport links, the chance for a bit of retail therapy, a strong nightlife, restaurants and high-performing schools are just a few that have topped the list of popular nearby features in recent years.
But how does having access to basic necessities within an easy distance affect the price of UK property? According to a new report published recently, one of the most popular amenities to have near home is a supermarket, with many Brits now looking for the chance to be able to do their weekly shop without having to travel all that far.
As a result of this appetite for groceries near home, the study from Lloyds Bank shows, average property prices near supermarkets have climbed markedly in recent times. It said that the average house near a supermarket is worth £21,512 more than a similar property that does not have such facilities close by.
It would appear that the type of supermarket also makes a difference to the price of the home as well, however, with the data showing that it is those homes near to Waitrose, Marks & Spencer, Sainsbury’s or Iceland that have managed to command the largest premiums in recent times.
Those properties that are within reachable distance of a Waitrose command the highest price differences, with homes in these areas able to sell for almost £37,000 more than the wider town averages. This is followed by Marks & Spencer, with homes near these stores going for £29,992 more than local averages.
However, although these supermarkets manage to inflate property prices more than any other, the research also discovered that it is those that are closest to budget supermarkets that have climbed faster than any others over the past few years.
Lloyds Bank said that homes near to budget supermarkets such as Aldi, Lidl and Asda have seen their prices climb by an average of 11 per cent over the course of the past three years. This is faster than the average price growth for the UK as a whole over the same period, the data shows.
"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," said Andy Mason, Lloyds Bank mortgages director.
He went on to add that while the 'Waitrose effect' has always been something that is evident in the UK property market, it is interesting to see that even the budget supermarkets being close by is having an impact on property prices nationwide.