Supermarket premium for home buyers

p32836UK-News-9-1

Published: Friday 3rd April 2015 by The News Editor

Comments (0)

Prices of homes near a national supermarket store such as Waitrose, Sainsbury’s, Tesco, Marks and Spencer or the Co-operative are typically more than £15,000 higher, a report has found.

Lloyds Bank compared the cost of homes in postal districts which have a national supermarket, with property prices in the surrounding areas of towns, u sing Land Registry house price figures covering England and Wales .

It found that on average, house prices in areas which have a supermarket in a given town are around 7% or £15,331 higher than areas within the same town that do not have one.

Properties with a Waitrose close by are the most likely to command the biggest price premiums compared with their surrounding areas, the research found.

The typical price of a home near a Waitrose is around £38,831 or 12% higher than the price of a property in the surrounding area.

House hunters searching for a cheaper property in their area which is still handy for a supermarket may want to look nearby an Asda, an Aldi or a Lidl.

Lloyds’ research found properties in postal districts containing these supermarkets tend to be slightly more inexpensive than homes in the surrounding areas of towns.

The research also looked at locations with the highest house price premiums compared with their local area.

It found Chiswick in London, which has a Waitrose, a Sainsbury’s and a Marks and Spencer, had the highest average house price premium, with homes there costing £918,287 typically, which is 117% or £495,601 more than the average property price for the surrounding borough of Hounslow.

Clifton in Bristol, which offers residents a Waitrose, a Sainsbury’s and a Co-op, was also found to have a high property price premium, with homes there costing £392,961 typically, which is 64% or £153,488 more than the surrounding area.

Meanwhile homes in Didsbury in Manchester, which boasts an Aldi, a Co-op and a Tesco, typically cost £239,595, which is 61% or £91,096 more than homes in the surrounding area.

Andy Hulme, Lloyds Bank mortgages director, said: “With homes in areas close to national supermarkets commanding an average of over £15,000 more than those in the surrounding areas, having a grocery shop within easy reach appears to be high on the list for home buyers looking for good access to local amenities.”

Here are the average house prices in postal districts in England and Wales which contain a particular supermarket, followed by the average house price in the surrounding areas of towns and the difference in cash and percentage terms between living in a postal district with one of these supermarkets and living in the surrounding area:

:: Waitrose, £354,378, £315,547, 12%, £38,831

:: Sainsbury’s, £273,381, £248,875, 10%, £24,507

:: Tesco, £237,074, £219,949, 8%, £17,124

:: Marks and Spencer, £304,494, 285,708, 7%, £18,786

:: Co-op, £217,378, £202,367, 7%, £15,011

:: Iceland, £238,094, £228,705, 4%, £9,389

:: Morrisons, £203,032, £197,552, 3%, £5,480

:: Asda, £188,531, £188,741, 0%, minus £209

:: Lidl, £218,165, £222,884, minus 2%, minus £4,719

:: Aldi, £177,993, £183,903, minus 3%, £5,910

Published: Friday 3rd April 2015 by The News Editor

Comments (0)

Local business search