Arthur takes a brief look at the ‘supermarket effect’ on property prices in England and Wales, and why, nowadays, supermarket proximity has become a unique selling point.
When it comes to supermarkets, we can’t deny that everyone has their preferences. Whether you’re a Waitrose lover, a Marks & Spencer loyalist, a Sainsbury’s shopper, or a bargain hunter at the likes of Lidl, Aldi and Asda, supermarkets certainly contribute to everyone’s weekly, or even daily, routines.
If you’ve ever been shown around a property by an estate agent, you’ll know that if indeed there is a supermarket nearby, then that’ll be one of the first things they would mention. This Is Money has also named having a major store within close radius of as one of the top ten factors to boost a property’s asking price.
In a recent article in The Daily Mirror, which uses Lloyd’s Bank research covering England and Wales, the effect of nearby supermarkets on property prices has been coined “the Waitrose effect”, whereby the “posher” the supermarket, the more value it could add to the respective property. On average it has been shown that properties within easy reach of a supermarket sell for up to £21,512 extra in comparison with similar properties in nearby areas or similar property markets. However, if the property was close to a Waitrose, often considered to be the highest-ranked supermarket on the supermarket “posh-scale”, then it the property could command premiums of up to a staggering £36,480.
Since the majority of homebuyers want to live near a supermarket for their personal convenience, if you’re looking to sell or rent out your property, it certainly seems like a good idea to stress its proximity to the nearest store as a key selling point. Moreover, if you’re looking to expand your property portfolio, Arthur would suggest looking in areas where new supermarkets are set to be built or opened in coming years. Having recently opened new outlets in Faringdon and Leatherhead, the cream of the crop, Waitrose, is said to be opening new stores in Winchmore, Finchley, Banbury, Haywards Heath, Addlestone and Bromsgrove later in 2017. These areas might be ones to keep an eye on!