Worried about house prices in an area you're thinking of buying a property in? There's a very good way to determine whether you'll be able to make a profit from a sale – or a decent income from rent, for that matter. The magic ingredient to a steady increase in house prices is... a budget supermarket.
Yes, it's time to move beyond the so-called 'Waitrose effect' which traditionally has seen property prices go up in affluent areas that have a Waitrose. Back in July, the Guardian reported that residents of three separate areas in England were worried that Waitrose selling off three of its supermarkets to Lidl would result in house prices plummeting. However, the data for house price changes as a result of proximity to different supermarket chains shows that this is anything but true.
In fact, if you're buying in an affluent area with the aim of maximising the property's potential profit, you should be looking at houses near an Asda. One of the best-value supermarket chains in the UK dominates areas such as Elmbridge, Mole Valley, Epsom and Ewell, and Windsor and Maidenhead where house prices are between £467,500 and £575,000 – the highest average in the UK.
Want to see how house prices are affected by being close to different supermarket chains in your chosen area? Check out The Supermarket Index developed by We Buy Any Home. We've played around with it to discover some very interesting stats – it increasingly seems that budget chains such as Aldi, Lidl, and Iceland are holding their own where it comes to boosting house prices in traditionally upmarket areas in large cities. It may be that the area demographics are changing – or it could be that budget food shops are upping their game in terms of providing both choice and value.