When searching for a new place to call home, you likely consider factors like public transport, schools, and even nearby takeout options. But did you know there’s a hidden secret that can help you predict up-and-coming property locations? It’s not just about imagining where you’ll do your weekly grocery shopping, but the supermarket itself that can be a powerful indicator. This phenomenon, often dubbed the ‘Waitrose effect,’ is a long-standing strategy for discerning whether an area is worth investing in from a property perspective.
While Waitrose might not be the most affordable option for your grocery needs, its presence can signal more than just upscale shopping. Research from price comparison website Which? found that Waitrose is indeed the most expensive supermarket in the UK, with an average price of £130.37 for 59 items. In contrast, Aldi emerged as the cheapest, clocking in at £102.68, followed closely by Lidl at £103.86. So, what’s the real significance of the ‘Waitrose effect’?
Marc von Grundherr, Director of Benham and Reeves, explains to Metro that the arrival of brands like Waitrose in an area is often seen as a precursor to rising house prices and a broader process of gentrification. He emphasizes, however, that this is often a case of the cart being put before the horse. These areas have already undergone gentrification, attracting high-end brands like Waitrose as a result of their evolving property market. This makes sense, as these brands are seeking to cater to the affluent population drawn to these locations.
While a simple indicator, keeping an eye on the supermarket landscape can help homebuyers understand the character of an area they’re exploring. A think piece in The Telegraph recently highlighted Waitrose as a sign of ‘yuppie appeal’ and a safe bet for property investment, noting the recent opening of a new Waitrose in Hampton Hill, southwest London, marking it as a promising area. Marc echoes this sentiment, suggesting that in today’s market, it’s not just Waitrose but also Whole Foods that serves as a marker of a thriving neighborhood.
However, the ‘posh’ factor doesn’t necessarily translate to a property hotspot. Marc cautions that in many areas where Waitrose has a presence, house prices are already inflated, which can result in slower appreciation rates. He argues that, for those seeking areas with strong price growth potential, it’s actually budget supermarkets like Lidl and Aldi that should be watched closely. These chains are synonymous with value for money, and their presence could indicate pockets of the property market where investment costs are reasonable with room for significant future growth.
So, the next time you’re on the hunt for a new home (assuming you’ve managed to secure a deposit in this competitive market), take a moment to survey the supermarket scene. Not only will it help you avoid long treks for your daily essentials, but it might just reveal a promising opportunity waiting to be discovered.