House prices rise £5,000 due to Aldi stores built nearby
IT used to be called “the Waitrose effect” – a jump in house prices when the upmarket supermarket opened a branch in the area.
By SARAH O'GRADY
In some areas the building of an Aldi has increased house prices by £5000
But now Aldi is having the same impact and an average rise of £5,000 in the value of homes has been recorded in locations where the cheap and cheerful brand has opened.
Of the 11 stores opened between February and April, nearly all locations saw an increase in values, with Chipping Norton, Oxon in the then constituency of former Prime Minister David Cameron, up 133 per cent.
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Conveyancers looked at house prices three months before and three months after a store had opened and compared them to the national average.
My Home Move chief executive Doug Crawford said: “A third chose a new property based on proximity to shops and amenities.
Values increased in Chipping Norton, the then constituency of David Cameron
The increase in house prices used to be called 'The Waitrose Effect'
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 home buyers are choosing to take the ‘swap and save challenge’, as locations such as South Ruislip (west London), Billingham (Teesside) and Poynton (Cheshire) have increased in popularity.
“The only exception was Reading, where prices fell – but with three stores two miles from the centre maybe demand has now been met.”