Living near a new Aldi supermarket can add an extra £5,000 to the value of your home, according to a report.
Research by conveyancing service My Home Move has revealed that within months of a new Aldi supermarket opening, an additional £5,000 is added to local property values, compared to the national average increase in property prices.
My Home Move said Aldi is now the UK’s sixth largest supermarket chain, with plans to open around 80 stores across the UK this year. Of the 11 stores that opened between February and April, nearly all locations saw an increase in property values, with prices in Chipping Norton (the then constituency of former PM, David Cameron) rocketing by 133%.
Commenting on these findings, ceo Doug Crawford said: “Our research has shown that a third of home movers chose their new property based on its proximity to shops and local amenities. So we’re not surprised that the recent popularity of Aldi, with its cheaper lines and award-winning products, has had a positive effect on the value of local homes.
“A few years ago people were talking about the ‘Waitrose effect’. But today it seems home buyers are choosing to take the ‘swap and save’ challenge to heart, as locations such as South Ruislip, Billingham and Poynton have increased in popularity.
The only exception in our research was Reading, where property prices dropped. But with three Aldi stores within a two-mile radius of the city centre, it may be the case that consumer demand has now been met.”
My Home Move compared the average house price for the three months prior to a new store opening with the price three months after. Of the locations analysed, only Reading saw a decrease in property prices. The remaining 10 locations saw house values increase between 1% and 133%.