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Living near a supermarket can add a serious premium to an investment property, however, this is dependent on the brand.
Analysis from Lloyds Bank found that living near a supermarket can add an average premium of £21,500 to property prices. Waitrose and Marks & Spencer attract the largest premiums, however, budget supermarkets can also have a positive impact on prices
On average investments located near a Waitrose demand the biggest premium with homes costing an average of £43,571. This is 12 per cent more than average house prices in the nearby town. Marks & Spencer commands a premium of £40,135 for nearby homes and nearby Sainsbury’s adds £32,707 to the value of a property. Homes within easy reach of all three supermarket chains gain an average premium of 12 per cent.
The premium attached to living within walking distance to a Marks & Spencer has grown by £10,143 from £29,992 to £40,135 in the last year, marking it out as the largest rise amongst the supermarkets chains.
Investment properties that are located close to a Tesco are also worth a sizeable £21,369 more than other properties in the nearby area, whilst the Co-Op can add a hefty £21,020 to a property price. Proximity to an Iceland adds £17,445.
Smaller local stores like a Little Waitrose, Sainsbury’s Local or Tesco Extra gain a higher average premium of £58,109 in comparison to a larger superstore at 11 per cent, equating to £30,580.
Lloyds Bank mortgages director, Andy Mason said: ‘It’s easy to assume the effect of different factors on the value of a property but this research clearly shows that there is a significant link between the convenience of a local supermarket and house prices. The Waitrose factor has been known for some time and although the likes of Aldi can’t yet boost house prices in quite the same way, the research shows that all stores are now having a positive effect on local property prices.’