This is the idea that the high-end supermarket pushes up house prices wherever it lands like some grocery-inspired Midas touch.
New research from
Lloyds Bank appears to show that living close to the well-known supermarket chain can add an average of up to £40,000 to the value of your home - a boost of 10% than the wider location.
In addition to Waitrose, properties near other brands also command the highest house price premiums - Sainsbury’s (£27,939), M&S (£27,182), Tesco (£22,072) and Iceland (£20,034). The research also appears to show that discount stores have a much smaller affect on house prices - Asda (£5,026), Lidl (£3,926) or Aldi (£1,333).
Locally, Chiswick commands the largest average house price premium when compared with the surrounding area, at £476,738. The average house price in Chiswick, which offers residents a Waitrose, Sainsbury's and Marks and Spencer, is £961,564 – almost double the average for Hounslow (£484,826).
Stories about the 'Waitrose effect' have become an annual phenomenon as news outlets report on the latest survey. So, is it true? Correlation is not causation, so just because house prices are high where there are Waitrose stores it doesn’t mean that the Waitrose stores are causing the high prices.
According to Radio 4s
More or Less, the programme about numbers and statistics, it is probably the other way around. It is Waitrose’s strategy that directs the retailer to a specific demographic and income profile. The retailer is choosing to locate in areas with the highest number of target customers.
There are many drivers of property prices and people don’t base home buying decisions on having a supermarket on the doorstep. Access to schools and transport links, proximity to amenities and green spaces, and the quality of housing all play a part.
According to Radio 4s More or Less, the programme about numbers and statistics, it is probably the other way around. It is Waitrose’s strategy that directs the retailer to a specific demographic and income profile. The retailer is choosing to locate in areas with the highest number of target customers.
There are many drivers of property prices and people don’t base home buying decisions on having a supermarket on the doorstep. Access to schools and transport links, proximity to amenities and green spaces, and the quality of housing all play a part.
