Latest News From My Home Move - the UK's leading conveyancer
19 September 2016
The Aldi effect – adding an additional £5,000 to the value of your property within weeks of a new store opening
- New Aldi supermarkets add an additional £5,000 to local property values within months of a store opening, compared to the national average
- 32% of UK home owners choose a home based on its close proximity to local shops and amenities
The opening of a new Aldi supermarket can add an additional £5,000 to the value of local homes, research by My Home Move, the UK’s leading provider of mover conveyancing services, has discovered, when compared to the national average increase in property prices.
Aldi, now the UK’s sixth largest supermarket chain, planned to open around 80 stores across the UK in 2016. Of the eleven 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 finding 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.
“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 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.”
My Home Move compared the average house price for the three months prior to a new store opening, to the three months after. Of those locations analysed only Reading saw a decrease in property prices, with the remaining ten locations seeing home values increase between 1% and 133%.