Research from estate agent comparison site, GetAgent.co.uk, reveals that buying a home near a supermarket comes with a 22% price premium, but that one supermarket chain carries a premium of almost 250%.
GetAgent.co.uk analysed property values for homes surrounding over 13,000 UK supermarkets of all brands, from Asda to Aldi, to see which name commands the biggest premium in today’s market and which has seen the strongest performance where house price growth is concerned.
The market analysis shows that a home near a supermarket will cost an average of £338,887, a premium of £60,451, or 22%, compared to the current UK average house price.
However, when looking at the Big 4 supermarkets - Tesco, Sainsbury’s, Asda, and Morrisons, this premium climbs even higher to an average of 23%, or £64,907.
Of all supermarket brands, the most expensive to buy near is Whole Foods, a popular American brand that has quickly made its mark on the UK. A property surrounding a Whole Foods will cost you an average of £970,147 - a 248% premium versus the wider UK average.
Waitrose also continues to command a healthy house price premium at 81%, followed by Budgens (74%), Marks & Spencer (48%), Sainsbury’s (39%), and Londis (32%).
As well as commanding significant premiums, supermarket house prices have also outperformed the wider UK market in terms of price growth in the past year. Since May 2021, the average UK house price has increased by 10.7% while the average for homes near supermarkets has grown by 11.1%.
The most impressive growth has been seen across areas surrounding a Budgens supermarket, with property values increasing by 14% in the last year alone. Homeowners surrounding The Co-Op (12%), Morrisons (11%), Waitrose (11%), and Londis (11%) have also enjoyed some of the strongest house price growth.
In terms of the most affordable supermarket house prices, those located near an Asda store can be bought for an average of £242,930, -12.8% below the national average. Lidl homes cost -10.1% below average, and homes near branches of Aldi can be snapped up for -9.8% below average.
Colby Short, Founder and CEO of GetAgent.co.uk, commented: “The Waitrose Effect is a well-engineered concept that will have many homeowners buzzing with excitement should one open within arm’s reach of their home. However, the reality is that Waitrose stores are only located in affluent areas and so property values are going to be above average, to begin with.
"If you really want to benefit from upward house price growth, it’s a Budgens you need to set your sights on when looking to buy, as homes surrounding this supermarket brand have outperformed the rest in the last year.
"But when it comes to the greatest level of affordability, Lidl and Aldi not only offer great value on your shop, but property prices surrounding these stores are also the lowest of all supermarkets.”
