When looking to buy a new house, there are usually quite a few factors taken into consideration, including whether there are good transport links, what the schools are like if you have, or are thinking of having, a family, and whether the crime rates are low.
A new study has now found that having a good supermarket nearby is also an important factor homebuyers are now looking for, and living near an upmarket store could boost the value of your house by over 30%.
Research by Lloyds Bank found that a home that is situated within easy reach of a supermarket will cost on average 7% more that one situated in another area of the same town. This works out at an average of £15,331 more.
There are of course many different supermarkets though, and the study found that some supermarkets have a much bigger impact on the price of a house than others do. Waitrose topped the list, with buyers happy to pay an average of 12% more to live near one - the equivalent of £38,831 more.
Sainsbury’s was also a popular option and was seen to boost the price of a property by approximately 10% or £24,507. Being located near a Tesco increased the value of a house by an average of 8% - the equivalent of £17,124.
Surprisingly, being close to a Marks & Spencer only adds 7% to a property’s value, even though it tends to be considered as an upmarket store. A Co-op will add the same amount of value, and a branch of Iceland or Morrisons will increase house prices by 4% and 3% respectively.
If houses are situated near a discount store, then their value is likely to be lower when compared to similar homes in the surrounding area. A property within walking distance of an Aldi may have 3% knocked off its value, and Lidl decreases prices by 2%.
Interestingly, ASDA didn’t appear to have any effect on houses nearby, and their prices were the same as those in other areas. Andy Hulme, Lloyds Bank mortgages director, said:
“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.”
Different areas of the country appeared to be affected by supermarket proximity, and the biggest impact was seen in the West Midlands, where property prices cost around 37% (£66,130) more if they were in walking distance of a Waitrose.
Houses in the north west saw a 33% (£63,921) increase in price if near a Waitrose, and properties in London saw a 14% increase - the equivalent of a staggering £76,188. Next time you are looking to move, make sure to consider the factors that may make your next house as valuable as possible.
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