Budgens beats Waitrose with highest house price growth

It’s no surprise that houses located near supermarkets lead significant premiums in the property market. But the market is an unpredictable place at the best of times. Since the beginning of the pandemic, house prices have boomed by 15.5%.

With this in mind, we analysed the value of properties surrounding 13,000 UK supermarkets of all brands. From Asda to Aldi, we set out to see which name commands the biggest premium in today’s market, and which has seen the strongest performance where price growth is concerned.

What we discovered

Buying a home near a supermarket comes with a 22% price premium but one chain carries a premium of almost 250%.

Our analysis found that homes near supermarkets cost, on average, £338,887, a premium of £60,451 or 22% compared to current UK average house prices. However, when looking at the ‘Big Four’ supermarkets (Tesco, Sainsbury’s, Asda and Morrisons), this premium climbs higher to average at 23% or £64,907.

But of all brands, the most expensive to buy near is Whole Foods, a popular American supermarket that has clearly made its mark in the UK. The average property near Whole Foods costs around £970,147 - a 248% premium versus the wider UK average.

Supermarket house prices have outperformed the wider UK market

Most supermarkets appear to command healthy house price premiums. Waitrose, for example, has a premium of 81%, followed by Budgens with 74%, Marks and Spencer with 48%, Sainsbury’s with 39%, and Londis at 32%.

However, as well as commanding good premiums, supermarket house prices have also outperformed the wider UK market in terms of price growth within the past year. Since May 2021, average UK house prices increased by 10.7%, while homes near markets have grown by 11.1%

The supermarket with the most impressive growth

The most impressive growth across supermarket properties were areas surrounding Budgens, with property values increasing by 14% in the last year alone. Homeowners living near Co-op (12%), Morrissons (11%), Waitrose (11%) and Londis (11%) also enjoyed some of the strongest house price growth.

The most affordable supermarket properties

In terms of the most affordable supermarket house prices, properties located near Asda can be purchased for an average of £242,930, over -12.8% below the national average. Properties near Lidl cost -10.1% below the national average, while properties near Aldi can be snapped for -9.8% below the average.

Data and methodology

• The Big 4: Tesco, Sainsbury’s, Asda and Morrissons

Methodology

Supermarket outcode house price data sourced from Propertydata.co.uk based on analysis of over 13,000 supermarkets.