Proximity to a supermarket could add £22,000 to the value of your home

1st July 2016

New research from Lloyds Bank has revealed that living close to a well-known supermarket chain can add £22,000, on average, to the value of your home.

The report also showed that premium brands can add even more to nearby house prices, with properties close to a Waitrose store receiving an average boost of £38,666.

In addition to Waitrose, properties near a Sainsbury’s (£27,939), Marks and Spencer (£27,182), Tesco (£22,072) or Iceland (£20,034) command the highest house price premiums.

The lowest house price premiums are in areas with an Asda (£5,026), Lidl (£3,926) or Aldi (£1,333) store.

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

“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.”