Do you live near a supermarket? Did you know that living near supermarket could increase the Value of your property? It’s called the Supermarket Premium
It turns out that if a home is located near a well-known supermarket it can increase cost by £22,000 more than the surrounding area.
An upmarket supermarket can boost nearby property prices even more. If a house is in easy reach of a Waitrose it could cost £38,666 more.
According to research conducted by Lloyds Bank’s in England and Wales, other supermarket chains can drive significant premiums as well:
- Sainsbury’s: £27,939
- Marks & Spencer: £27,182
- Tesco: £22,072
- Iceland: £20,034
So Why is this happening?
Normally Schools, Low crime rate and good transport links tend to be a top of buyers wish list when they are looking for their new home.
But Lloyds Bank are suggesting that the proximity to a supermarket is also a priority, with significant premiums attached to convenience.
Mike Songer, Lloyds Bank mortgage director, said: “Of course, there are many other drivers of house prices beyond having a supermarket on your doorstep, but our research suggests that it is a strong factor.”
Buyers in the Cheshire town of Wilmslow will have to fork out on average a £277,028 premium. This is because Waitrose, Sainsbury’s, Marks & Spencer, Tesco and Lidl are all located in the town.
The supermarket ‘bounce’ is not restricted to homes near the more premium supermarkets like Waitrose, Sainsbury’s or Marks & Spencer’s. Discount chains can also boost house prices in the neighbourhood.
