House prices are higher when they are located near supermarkets, new research shows.
And in the North West, it can mean property worth up to 33 per cent more, according to research from Lloyds Bank.
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 homebuyers looking for good access to local amenities.Andy Hulme - Lloyds Bank mortgages director
It found that the average house price in areas which offer residents easy reach of a local supermarket is around seven per cent (£15,331) higher when compared to other areas within the same town which don’t.
The survey compared average prices in postal districts which have a national supermarket to the wider post town It has identified the average house price premium or discount associated with the proximity to some of the UK’s largest grocery retailers.
Properties in areas with a Waitrose, Sainsbury’s or Tesco are most likely to command a higher house price premium when compared to the wider town average.
The average price premium for properties within easy reach of a Waitrose is 12 per cent (£38,831) higher than the wider town, Sainsbury’s 10 per cent (£24,507) and Tesco eighth per cent (£17,124).
In the North West proximity to a Waitrose brought a 33 per cent rise, said the survey.
A supermarket is defined as where the store selling space is greater than 3,000 sq ft.
Andy Hulme, Lloyds Bank mortgages director, commented: “It’s easy to assume the effect of different factors on the value of a property but this research enables us to clearly see that there is a significant association between the convenience of a local supermarket and house prices.
“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 homebuyers looking for good access to local amenities.”
Regionally the greatest house price premium that can be aligned to a supermarket presence is in the West Midlands, where areas with a local Waitrose command an average 37 per cent (£66,130) more than the surrounding town.
This is followed by the same supermarket in the North West 33 per cent (£63,921) and London 14 per cent (£76,188).