House prices near budget retailers like Aldi and Lidl have surged at a faster rate than those near supermarkets generally in recent years, analysis has found.
Properties close to Lidl, Aldi, Morrisons and Asda have typically increased by 15% (£29,316) in value over the past four years, Lloyds Bank said.
This is a faster percentage increase than for house prices near all major supermarkets across its study, at 10%.
Despite the rapid price uplift for homes near budget stores, the report found that the “Waitrose effect” still commands the biggest house price premium in cash terms.
Homes in the same postal district as a Waitrose cost £43,571 more than those in the wider town they are situated in on average.
This is followed by properties close to a Marks & Spencer, with a premium of £40,135, and Sainsbury’s, at £32,707.
House prices near all the supermarkets in the study were found to be higher typically than property values in the surrounding area - meaning that home- buyers can expect to pay a premium to live near a major supermarket.
On average, living near a supermarket commands an average house price premium of £21,500, the research found.
At £420,112 on average, house prices in areas near a Waitrose are typically higher than those near the other supermarkets in the study.
Properties close to an M&S command an average price of £343,797, while those near a Sainsbury’s have an average price of £320,510 and houses near a Tesco are typically priced at £278,647.
Property prices close to an Aldi stand at £213,765 on average, while those near an Asda are £215,054. The average house price near a Lidl is £244,687 and a typical home close to a Morrisons costs £233,261.
Lloyds Bank mortgages director Andy Mason said: “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.”
Here are the average house price premiums home-buyers face to live close to the following supermarkets, according to Lloyds Bank:
1. Waitrose, £43,571
2. Marks & Spencer, £40,135
3. Sainsbury’s £32,707
4. Tesco, £21,369
5. Co-op, £21,020
6. Iceland, £17,445
7. Morrisons, £11,346
8. Lidl, £5,411
9. Aldi, £2,301
10. Asda, £1,487