We conducted a study in partnership with journalistic.org to find out how the brands on your high street can affect your house price. Our analysts looked at 21 different brands on 27 high street towns, alongside Land Registry house price data to determine the brands that influence your house price.
House price growth has seen a steady year-on-year increase since 1995, with the exception of the 2007-2008 property market crash. Ever since the housing market has recovered handsomely, as UK house asking prices at an all-time high of £307,033 according to Rightmove’s house price index for April 2016.
There are, of course, many factors that we originally associate with higher and lower house values. There’s the standard physical features like the number of bedrooms, bathrooms and available floor space. There are plenty of estate agent-made categories that are said to influence your house asking price like transport links, quality of nearby schools, noise levels, crime rates and even the name of your road. So we thought we’d investigate if there is a hidden effect from the brands that occupy your high street.
What if the type of shops and brands that you live nearby actually influence your house price?
Here at FastSaleToday we conducted an in-depth study of 21 brands and the average house prices of 27 towns with high streets. The results showed that premium restaurant brands, specifically Carluccio’s, Prezzo and Zaza all had a positive effect on your house price. With living near a Zaza creating a whopping 42% rise above average house price values. This finding was linked with the favourability of such restaurants. People want to live near high-end restaurants and will pay a premium to have them on their doorstep. It was also found that both M&S and Waitrose had a positive effect on house prices of between 8 – 9%. This finding was not of surprise as previous studies have shown that a ‘Waitrose effect’ may exist. That living near the premium supermarket can increase your house value by up to £40,000. So our results further confirm the existence of this phenomenon, and provide more scope that indicates a ‘high-street brand effect’ where other premium luxury brands are more likely to increase your house price and where there are higher concentrations of value brands, housing areas in close proximity experience lower than expected average house values.
Another interesting finding was that living near British clothing company M&Co can increase your house price by up to 39%! We were surprised to discover this, as the clothes store was established in 1834 and has been on the high street for many years. But we didn’t expect the store to have such a positive effect on house prices, however, perhaps the retailer held value due to its strong heritage.
Our research showed that value brands such as McDonalds, Primark, Asda and Peacocks had an adverse effect on your house price in comparison to luxury brands. The above mentioned brands had between a 21 – 24% decrease on your average house price if you were within walking distance of the stores.
There were exceptions to the rule where some premium stores and value brands occupied space on lower than average house price high streets such as Prezzo, M&S, Poundland and Iceland. But the general trend was overwhelmingly significant.
Here is a graph to represent the concentration of high-street brands and average house price
Please feel free to share the graphs and content on your website, on social media and anywhere else.
For more information on the study please don’t hesitate to get in touch.