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Living close to this supermarket adds nearly £40,000 to the value of your house

Jul 25, 2016, 14:46 IST

Flickr/ The U.S. Army

Living close to a supermarket can boost the value of your home by £22,000 on average, new research from Lloyds Bank has found.

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But if you live near a Waitrose, your home could be worth £38,666 more than equivalent houses in a similar area without a branch of the upmarket food store.

Lloyds Bank compared the value of houses in a postal district with a supermarket to houses in nearby areas without one, according to The Telegraph.

"Our findings back-up the so-called 'Waitrose effect,'" Mike Songer, mortgage director at Lloyds Bank said in a press release. "There is definitely a correlation between the price of your home and whether it's close to a major supermarket or not."

"Our figures show that the amount added to the value of your home can be even greater if located next to a brand which is perceived as upmarket," he added.

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The study also found that properties near a Sainsbury's or Marks & Spencer have their value boosted by £27,939 and £27,182 respectively.

Houses that are close to less expensive supermarkets experienced a slight increase in value, but the effect is dramatically reduced.

For example, if your home is situated near a Lidl store it can be up to £3,926 more valuable, while being on the doorstep of an Aldi adds just £1,333 to your property value.

Effect of each supermarket on house value:

10. Aldi - £1,333.

9. Lidl - £3,926.

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8. Asda - £5,026.

7. Morrisons - £10,558.

6. Co-op - £17,904.

5. Iceland - £20,034.

4. Tesco - £22,072.

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3. Marks & Spencer - £27,182.

2. Sainsbury's - £27,939.

1. Waitrose - £38,666.

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