Nearby supermarkets can add £22,000 to the value of a home

Nearby supermarkets can add £22,000 to the value of a home [Photo: gilaxia via iStock]

There are many things that can add value to homes in the modern world, purely because of the demand from buyers for properties that have those particular features. For example, properties with two bathrooms were once highly sought, while in the modern world, strong Wi-FI connections and good schools nearby can really help a home's value climb. 

However, while these are well known boosters of house prices, there are some features that can unexpectedly increase the price buyers will pay when it comes to getting themselves a home. For example, a new report released by Lloyds Bank has claimed that having a well known supermarket chain nearby can add an average of £22,000 to the price of a property.

Sainsbury’s, Marks and Spencer, Tesco and Iceland in the area all boost the price of a home markedly, the report found, thanks to the convenience that their presence can offer for buyers. However, while these all boost prices for sellers, it is the premium brands that will give them the best boost. 

The study found that homes near to a Waitrose will be sold for an average of around £38,000 more than the others in their towns and cities, or ten per cent more than the area in general.

But it's not all supermarkets that have this sort of effect, according to the report. While they still boost prices a little, the benefit of having an Asda, Lidl or Aldi nearby is far less pronounced than other supermarkets. 

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

"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," he added.