The Supermarket Effect on Property Prices

When it comes to the value of your property, there is a range of factors that will have an impact. Some elements you can have an effect on, such as adding a wrought iron balcony or building an extension. However, there are also factors that you have no say over. This includes how close you live to a supermarket and even which chain it is.

A new piece of research has looked into which supermarket chains have the biggest impact, whether positive or negative, on the price of local property. On average this could be as much as £38,000 if you live near a particular chain. The research conducted by Lloyds Bank found that on average being close to a major supermarket increased the value of homes by 7%. When this is equated to the cost of an average property, it works out to £15,331.

The Waitrose Effect

However, the particular chain that you live closest to could have more of an impact than others. This depends on how desirable potential buyers find that brand to be. For instance, being close to a Waitrose store had the largest effect on property prices. This increased them by 12% or the equivalent of £38,831 on an average property. Following this was Sainsbury's, which increased the value by 10% or £24,507 and then Tesco, which raised prices by 8% or an average of £17,124.

On the other hand, discount chains could be detrimental to your home's value, as buyers deem it to be in a less desirable area of the town. The research found that having a house near an Aldi reduced the value by 3% and Lidl lowered prices by 2%.

Regional Differences

There are also regional variations in the effect that supermarkets have on property values. Some areas of the country saw more of an impact on property prices than others. The largest impact the research found was in the West Midlands, where being close to a Waitrose added 37% to the value or £66,130 on an average property. Those living near this brand in the North West also saw a significant uplift in value, with prices rising by 33% or £63,921, and in London it was 14% (£76,188).

There are clearly many factors that will impact on the asking and selling price of your home. You could choose to have a wrought iron balcony added or convert your garage to make your home more attractive to buyers. However, the research shows that even elements that you can't alter, such as the closeness of a particular supermarket, can have a significant effect on the value. Buyers want the convenience of a good local store, and they're willing to pay more to achieve this. In addition, particular chains are associated with better neighbourhoods, even if this is not necessarily true.

Where your property is positioned in relation to the nearest supermarket is not something that you can alter. However, understanding what buyers are looking for and what they're prepared to pay extra for can help you market your home more effectively.