Retail's house effect
The average UK house price in an area offering easy access a local supermarket is around 7% higher - £15,000 - when compared to neighbourhoods in the same town without a store close by, according to research from Lloyds Bank. Properties in localities with a Waitrose, Sainsbury’s or Tesco are most likely to command a house price premium – those within easy reach of a Waitrose are priced 12% (£38,831) higher, Sainsbury’s 10% (£24,507) and Tesco 8% (£17,124).
“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,” Andy Hulme, Lloyds Bank mortgages director.
Not so fast. What isn’t factored in here is that Waitrose tends to open up in areas where residents have higher income levels, which would suggest that they also live in more expensive parts of town… we are talking about the order of chickens and eggs.