There is one foolproof way to spot which part of town has really made it. It might start with a flurry of trendy independent coffee shops, but there’s one store that will seal the deal. That store is Waitrose.
All it takes is for those green letters to go up and you know your postcode is on the up, and the prices too.
At least that’s what research by Property Solvers has discovered. They found that homes within the wider postcode area of a Waitrose store sells for almost £1m more than the average home in the UK.
Properties in the wider postcode area sold on average for £1,220,296, while homes within a quarter-of-a-mile of a Waitrose store were found to sell for £469,933 on average. This was still almost double the average house price in the UK of £227,001.
Waitrose has long established itself as a beacon for middle-class households. So it’s no shock that being able to easily fill your fridge with the essential range is a sign of living in an expensive area.
Could this price hike be the result of a ‘Waitrose effect’? Many believe it is, claiming that house prices can see a jump in house prices when the supermarket opens in an area.
However, it could simply be a case of the supermarket targeting expensive areas, ripe with potential customers.
Either way, living near Waitrose doesn’t come cheap. Only 19.4 per cent of homes near Waitrose stores were found to be under the national average. In the wider postcode area, only 3.2 per cent of properties were found to be cheaper.
It’s no surprise that the most expensive properties surrounding Waitrose were in Central London. Belgravia, Marylebone, Knightsbridge, Kings Road and Notting Hill Gate all demanded top prices.
However, in Wolverhampton, Preston, Sheffield and Northumberland house prices were lower but a Waitrose premium still exists.
‘The type of local amenities in a given area is, in many cases, just as important as the convenience they provide. The fact is that ‘higher-end’ supermarkets such as Waitrose or M&S Food, foster a certain reputation in an area,’ explains Laura Howard, a spokesperson for Zoopla.
‘It’s this reputation which makes the area more appealing, creates competition for property and can ultimately push up prices. There is rarely a shortage of candidates willing to pay a premium to live there,’ she adds.
Would you pay more to live near a Waitrose?