‘Waitrose effect’ wanes as house prices run out of steam

The migration from towns and cities during the pandemic has put a nail in the coffin of the so-called “Waitrose effect”.

According to Lloyds analysis from 2018, houses near the supermarket saw an average £40,000 boost in value.

However, property company TwentyCi claimed that this is no longer the case.

Houses nearby to a Waitrose saw values rise by 16 per cent, while this stood at 23 per cent in those further away.

READ MORE: Waitrose supplier lashes out at ‘frustrating’ minimum wage rise

TwentyCi chief customer officer Colin Bradshaw said this “reflects the picture we have been seeing throughout the pandemic.”

He continued: “While proximity to a Waitrose store is attractive, the bigger move is away from busy town centres and cities, towards quieter green spaces.”

Property buyers have raced to rural and coastal areas since last year following multiple lockdowns and the shift to home-working.

Sales director Phillip Stevens, of estate agents Antony Roberts, said that “this trend is nothing to do with Waitrose specifically”.

Speaking to the Daily Mail, he noted that stores are “generally located” in sought-after town centres.

Stevens continued: “Many more people are working from home… so they are prioritising the greater internal and outside space offered by properties further from town centres.

“It is likely that the town centre premium will not again be as significant as it used to be pre-pandemic.”

A separate study from last month suggested buyers would prefer being near a Tesco supermarket.

The Rightmove poll of 2,023 internet users found that most preferred the retailer to a Waitrose, although preferences varied around the country.

Shoppers in the South favoured Waitrose while Sainsbury’s came out on top in Yorkshire & the Humber.

However, Rightmove admitted that the results could be skewed as Tesco has more stores around the country.

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