A report by Lloyds Bank has cast a very interesting light on the UK property market and the impact which local supermarkets have on average property prices. The research by Lloyds Bank took the average price of property in areas of the UK England and Wales and then compared and contrasted the impact which certain supermarket brands have on the local marketplace. While there is perhaps more to the variation in prices than just your local supermarket, it does give an interesting angle on what buyers are looking for.
Location, location, location
We all know that the location of any property will have a major impact upon the cost, rental income and potential for capital appreciation going forward. Local amenities are also a significant factor when looking at house prices because if your amenities are all in one area then that makes your property more desirable. Check out the list below to show the impact which certain supermarket brands have upon local property prices:-
Aldi (1% increase)
Lidl (2% increase)
ASDA (2% increase)
Morrisons (5% increase)
Co-op (8% increase)
Iceland (8% increase)
Tesco (9% increase)
Marks & Spencer (9% increase)
Sainsbury’s (10% increase)
Waitrose (10% increase)
Just before we look at the actual average monetary increase it is perhaps a little surprising to see the likes of ASDA and Morrisons so far down the list. However, it will be no surprise to see Waitrose at the top of the list just ahead of Sainsbury’s.
Monetary increase
It is difficult to look at the average monetary impact which specific supermarket brands have upon local property prices because property prices do vary right across the UK. However, this report suggest that at the top end of the table Waitrose can add a whopping £38,666 to the value of your property with Sainsbury’s in second place at £27,939. Towards the lower end of the league table Aldi attracts an average increase of just £1,333 with Lidl in ninth place at £3,926.
In many ways it is interesting to take into account the various strong brand names in this top-10 league table and compare a contrast with their recent fortunes. Tesco and Marks & Spencer’s were once seen as the cream of the UK supermarket sector but their stars have dimmed slightly in recent times due to difficult trading conditions. Waitrose has for many years now been seen as the upmarket supermarket and as a consequence it is no surprise to see this particular company leading the way.
Local services
Where we see similar reports taking into account local services we will add these to the website as they do give some food for thought when looking at particular properties. We all know that the location of any property is vital but perhaps we do not always consider the impact of local services and amenities on property prices. For those more adventurous property investors it may be an interesting research project to monitor up-and-coming developments in towns and cities across the UK and how these impact property prices in the future. When you look at the likes of the high-speed rail link, which has now been put on hold, this had already begun to have an impact upon the price of property along the proposed rail line.