According to newly released research and analysis from lending platform, Source Capital, the UK property market could potentially see a double-digit rate of value decline due to COVID-19. The firm analysed market data from previous recessions to look at the potential decline caused to the UK property market due to the economic impact of the current pandemic, should history repeat itself. Currently, the market has ground to a halt as both buyers and sellers remain unable to transact due to Government-imposed restrictions, but a study by Lloyds Bank may provide a glimmer of hope for those who live close to a supermarket.
The data, released in 2018, found that living near a supermarket can surge your property’s value up by an average of £21,451, and although all the well-known chains have a positive impact, the more premium the shop the higher the rise.
If there is a Waitrose nearby, you can expect to sell your property for as much as £43,571 more than similar houses in the area, Marks and Spencer attract a premium of £40,135 and those close to a Sainsbury’s go for an average of £32,707 more.
The good news is that even if your area does not have any of the high-end supermarkets yet, all supermarkets add some value to your property.
Homes close to a Tesco or Co-op are worth over £21,000 more than other properties in the nearby area, and frozen goods retailer Iceland attracts a higher average value of £17,445.
There is most definitely a Waitrose effect
The data also found the fastest house price rise (15 percent) in the four years previous came from properties living near budget supermarkets such as Lidl, Aldi, Morrisons and Asda.
This theory was put into play during Channel 5’s ‘Inside Waitrose’ series, where estate agent Keith Rogans took viewers to two different properties in Hythe.
He said in 2019: “We’re going to pop around and have a look at two lovely properties.
“One is in the centre of Hythe, another one is down on the coast – the seafront – at Littlestone.
“Both properties we are going to look at are new and both very similar.
Mr Rogans took viewers around the first property.
He added: “This is the first apartment, it has an open-plan living area with a stunning sea view, the kitchen just over to the right.
“Clearly this [sea view] is the unique selling feature, a price premium for this stunning view.
“The value for this property is £395,000.”
Then, Mr Rogans headed to another apartment in the town of Hythe, within walking distance of a Waitrose.
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He said: “This is the open-plan living room, lots of space for the sitting area and dining area.
“But this second apartment I would value for £475,000.
“The price difference between the two is £80,000, there is most definitely a Waitrose effect.
“Customers often come into us when registering to look for properties and ask us the question of whether it is near to a Waitrose.
“As an estate agent, we consider the Waitrose effect very important and certainly does add to the value of the property.”
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