‘The Waitrose Effect’ – Fact or Fiction?
What exactly is the Waitrose effect?
The Waitrose effect is simply the added value put on to local property when one of these supermarkets are located in the immediate vicinity. Property prices are said to be generally higher thanks to a Waitrose being nearby, though many will say that the area itself is what adds the value to property and attracts interest from Waitrose in positioning itself there.
‘Founded in 1904 by Wallace Waite, Arthur Rose and David Taylor, Waitrose & Partners began as a small grocery, Waite, Rose & Taylor, in Acton, West London. In 1908, two years after David Taylor had left the business, the name “Waitrose”, from the remaining founders’ names, was adopted… Waitrose & Partners has 338 shops across the United Kingdom, including 65 “little Waitrose” convenience shops, and a 5.1% share of the market, making it the eighth-largest retailer of groceries in the UK.‘ Source Wikipedia
Stores are usually located within upmarket demographics so to appeal to consumers with larger spending budgets and over the years has gained a reputation for delivering on superior quality compared to rival chains such as Tesco, Sainsbury, Aldi and more. It may cost you more to shop at Waitrose which will appeal to
“Value at Waitrose comes as affordable quality rather than as Every Day Low Pricing, so while you pay more, the quality is better.” Source marketingweek.com
What effects house prices?
It is more than just whether your local supermarket is a Waitrose or a Lidl that will effect house prices. The most common factors helping to increase house prices include transport links, closeness to cities / London, local schooling, crime rates and much, much more.
There have been many articles written and latest figures revealed that frequently backup the Waitrose Effect claim with homes close to, especially walking distance, a Waitrose store will cost £43,571 more than other houses in the wider town.
Estate Agents will be very familiar with the term also and many use the pull and lure of a Waitrose nearby to further promote said listings on their books – Not only Waitrose, a supermarket close to your property will add value for convenience purposes, Marks & Spencer being close behind the figures of Waitrose along with all the other big brand supermarkets adding £££’s.
Andy Mason, Lloyds Bank mortgages director, commented: “It’s easy to assume the effect of different factors on the value of a property but this research clearly shows that there is a significant link between the convenience of a local supermarket and house prices.
“The Waitrose factor has been known for some time and although the likes of Aldi can’t yet boost house prices in quite the same way, the research shows that all stores are now having a positive effect on local property prices.”