Move over Waitrose, new research shows the ‘Aldi effect’ is boosting property prices by up to £5,000 within three months of a store opening.
The arrival of a new Aldi supermarket in your area could boost the value of you home by an average of £5,000 just three months after opening, according to new research.
My Home Move, a conveyancing firm, found that the ‘Aldi effect’ is inflating prices by 2.5% for the average UK home, from £216,350 when the store opens to £222,052 three months later.
In the past, Aldi has been seen as a budget supermarket that could actually hurt property values in the surrounding area.
But the store is now the UK’s sixth largest supermarket chain and has become the new hotspot for middle-class shoppers looking to save money.
Read: Aldi: 10 shopping hacks to save you even more.
Charting the rise
Between February and April this year, Aldi opened 11 new stores.
The My Home Move research shows that nearly all locations saw an increase in property values of 1% or more.
In Chipping Norton, the constituency of former Prime Minister David Cameron, prices rocketed by as much as 133%.
The only exception was in Reading where prices dropped slightly.
Doug Crawford, CEO of My Home Move, said: “Our own research has shown that a third of home movers chose their new property based on its proximity to shops and local amenities – and as such we are 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.
“The only exception in our research was Reading, where prices have dropped – but with three stores within a two-mile radius of the city centre it maybe that consumer demand has now been met.”
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Aldi vs Waitrose
The research from My Home Move echoes the findings of a report from Lloyds Bank earlier this year.
Lloyds Bank found that living near an Aldi could boost the value of nearby property by an average of £1,333.
However, the ‘Aldi effect’ still has a long way to go before having the same clout as the ‘Waitrose effect’.
The Lloyds research shows house prices in an area with a Waitrose boosts the value of homes by £38,666.
Interested in other things that impact your home’s value? Read: 9 things that can increase or decrease the value of your home.
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