Living near a Waitrose ‘puts £38k on value of your home’
Study by Lloyds Bank finds proximity to upmarket supermarket branch can signifcantly add to property’s value, but living next to an Aldi can take off almost £6,000.
Prices of homes near a national supermarket store such as Waitrose, Sainsbury’s, Tesco, Marks and Spencer or the Co-operative are typically more than £15,000 higher, a report has found.
Lloyds Bank compared the cost of homes in postal districts that have a national supermarket with property prices in the surrounding areas of towns, using Land Registry house price figures covering England and Wales.
It found that on average, house prices in areas which have a supermarket in a town are around seven per cent – or £15,331 – higher than areas within the same town that do not have one.
Now this raises an important question. Proponents of a Land Value Tax argue that if property values rise, a proportion of the increase in value should be returned to the community on the grounds that the community has enabled the increase in value to occur.
But is it the community (unless we mean shoppers?) or the supermarket? Should homeowners pay a tax to the supermarket for raising the value of their property? Now that would be daft!
[NB taking a proportion of the increase in value through tax is appropriate where the wider community has invested in such a way as to enable a landowner to develop land and gain thereby as the value of the land has risen. A good example would be if the state/community invested in a road which then enabled land to be developed].