Property News > One High Street brand influences home prices more than any other, study suggests
One High Street brand influences home prices more than any other, study suggests
Homes in close proximity to a Marks and Spencer store, particularly the brand’s food outlets, fetch an average of 15% more on the property market, according to new research. The study, carried out by hybrid estate agent Emoov, looked at property prices surrounding over 900 Marks and Spencer stores and then compared them to prices elsewhere. Average property prices in the wider area remain at an affluent average of £538,292, however, within the immediate vicinity of a Marks and Spencer outlet, this increases to £632,100. The M&S Simply Food store in Heswall, Merseyside, was shown the have the most significant impact on property values, with average prices in the CH60 area where the store is located selling for an average of £403,277, compared to just £160,053 elsewhere in the Merseyside area - a difference of 60%. In London, convenience is often key for home buyers, which influences property prices as a result, with the cost of living near a Marks and Spencer in the capital hiking prices up by an average of 36% compared to elsewhere. This is magnified even further in Notting Hill Gate, where there is a 60% difference, while property close to the M&S Simply Food store in Tottenham Court Road is 49% higher than the wider area. However, the study also points out that, while this is good news for homeowners who reside in these areas, planned M&S store closures could affect property values. Meanwhile, closures of other upmarket stores such as House of Fraser and Waitrose could also result in a decrease in property prices around those areas. ‘The impact of high end outlets have long been attributed to higher house prices, and this is true to some extent. These stores are obviously located in areas home to their target demographic, with a more abundant additional income, more expensive homes and so on, but a well populated High Street can help stimulate the surrounding property market,’ said Russell Quirk, Emoov chief executive officer.‘This is largely because home buyers crave the convenience of nearby amenities and while it is unlikely that the closure of a single shop will drastically impact house prices, a number of household names vanishing from our High Streets could see surrounding property prices start to reduce,’ he explained.‘Ironically, it’s this demand for greater convenience that is resulting in the closure of these retailers, as the consumer mind set is moving more and more towards the online space,’ he added.