Independent Shops Replace Waitrose-Effect in Terms of House Price Premiums

High streets filled with independent shops have replaced the Waitrose-effect in terms of adding house price premiums, according to estate agent Marsh & Parsons.

Independent shops are magnets for homebuyers, who are prepared to pay a premium in London for the privilege of living nearby, the agent found.

A street filled with vibrant, independent shops is now a more desirable amenity than the presence of a Waitrose. In the past, the so-called Waitrose-effect of having the supermarket in close proximity attracted a house price premium. Today, homebuyers would rather have the culture and character of independent shops in their neighbourhoods.

Marsh & Parsons has identified nine London streets where independent shops dominate and properties nearby command an average price premium of 10% more than equivalent homes further from such amenities:

Chiltern Street, W1

Bars and restaurants in the area include The Bok Bar and Blandford Comptoir, while the Atlas Gallery is also close by.

Brecknock Road, N19 

Future & Found is a popular shop in the neighbourhood, while The Pineapple also draws in buyers.

Fortess Road, NW5 

Independent boutiques in this district include SK Vintage and Jessica de Lotz Jewellery.

Salusbury Road, NW6

The Iris Fashion boutique and Queen’s Park Books are just a couple of the reasons that house prices here cost more than the average.

Shoreditch High Street, E1 

The Arts Club, Bull in a China Shop and Andina London are all popular restaurants and bars in this location.

Caledonian Road, N7

Around this area, Shillibeer’s, Kokeb and Hemingford Arms are all attractive to buyers.

Marylebone Road, NW1

In Marylebone, Margaret Howell, Gallery 1930 and Daunt Books are all reasons to buy here.

Queens Gate, SW7

Boosting house prices on this street are Royal Spades and Chic Elegance.

Golborne Road, W10

Potential buyers in this neighbourhood will enjoy Snaps & Rye, Lisboa Patisserie and Phoenix on Golborne being close by.

The Sales Director of Marsh & Parsons, Alex Lyle, says: “The predominance of chains in the high street has often meant that one is indistinguishable from another. People crave character and a street brimming with independent food shops, fishmongers, pubs with their own micro-breweries, bike shops, clothes shops and bookshops are a major draw.

“This adds great character to an area and is a major plus point. We have identified the new Portobello Roads – which 25 years ago helped put Notting Hill on the map. In an increasingly homogenous world, people seek diversity in their surroundings – a specialist coffee shop, a bespoke hat shop or a great world food restaurant can prove a real attraction to buyers. And that has taken over from the Waitrose-effect.”

Landlords, use these findings when considering your next property investment – young tenants will also be attracted to an area boasting independent shops, so find a great hotspot to boost your chances on the lettings market.

If you’re looking to make improvements to your properties, these renovations are the most profitable: /landlords-renovation-projects-profitable/