Living near a supermarket can bag you added value on your home.
The opening of a new supermarket store is not just convenient, but it can also help significantly boost the value of residential properties located nearby.
Budget supermarket Aldi announced plans this week to open 70 new stores in 2017 as it revealed a 12% increase in sales during 2015, and this could be great news for many homeowners.
A new Aldi supermarket adds on average almost £5,000 to local property values within months of a store opening, compared to the national average, new research shows.
Of the eleven stores that opened between February and April this year, almost all locations saw an increase in property values, with prices in Chipping Norton rocketing by 133%, according to the study conducted by My Home Move.
The impact that the opening of a new store has on property prices was calculated using HMLR data as following:
+ Average increase in house prices for homes located in new Aldi locations (excluding Chipping Norton) c.£10,000.
+ National average increase in house prices for the same time periods is £4,903.
+ The difference is c.£5,000.
Despite the growing popularity of Aldi, with its cheaper lines and award-winning products, and the positive effect that this can have on the value of local homes, it still does not have anywhere near as much of an impact as premium brands, like Waitrose.
Separate research from Lloyds Bank shows that living close to a well-known supermarket chain can add an average of £22,000 to the value of your home, and for more of an impact, properties located close to a premium brand, such as Waitrose, could receive an average value boost of £38,666, or 10%, than the wider town’s properties.
Here are the average house prices in postal districts located near a particular supermarket, followed by the average price in the surrounding town, and the premium people pay to live near a particular supermarket, in percentage and cash terms, according to Lloyds Bank:
+ Waitrose, £425,428, £386,763, +10%, £38,666
+ Sainsbury’s, £316,056, £288,117, +10%, £27,939
+ Marks & Spencer, £342,077, £314,895, +9%, £27,182
+ Tesco, £272,288, £250,216, +9, £22,072
+ Iceland, £257,055, £237,021, +8%, £20,034
+ Co-op, £238,448, £220,545, +8%, £17,904
+ Morrisons, £222,462, £211,904, +5%, £10,558
+Asda, £207,771, £202,745, +2%, £5,026
+ Lidl, £236,127, £232,201, +2%, £3,926
+ Aldi, £196,502, £195,169, +1%, £1,333