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RESEARCH: High Street Brands Affect Property Prices
Jun 1 2016
Darren Best
The research was conducted by counting in each town in Hertfordshire, the number of times a brand was situated. Each area had a designated value based on their percentage above or below the Hertfordshire average house price; taken from Rightmove’s property trends report. The brand affect was calculated based on the count or concentration of brands in each area. The average house price was then calculated against the concentration of brands; providing an overall figure for the brand’s effect across Hertfordshire.
House price growth has increased steadily year-on-year since 1995 and continues to outperform in many areas across the UK. However, with the exception of the 2007-8 property market crash, the housing market has seen house prices dramatically increase to an all-time high of £307,033; Rightmove’s house price index for April 2016. An increase in house prices doesn’t seem to be slowing down and it seems to be that brands which occupy your high street are impacting the likely value of your house when sold.
Which High Street brands can add or de-value property prices?
The research found that Zaza was the strongest brand of them all; a posh Italian chain that seems to boost property prices in Hertfordshire by 42%! By complete contrast, at the opposite side of the spectrum, if you live near a McDonalds, your property price can de-value by a whopping 24%; perhaps the lingering whiff of fast food is enough to put off prospective buyers. Of the brands that sit in between, Claire’s, Poundland and Iceland do not de-value one's property as much as the likes of Primark (-23%) and Asda (-22%).
Managing Director of Savoy Stewart, Darren Best has commented that ‘the findings were not a surprise to me. Previous studies have highlighted the Waitrose effect, but this one indicates an overall High Street brand effect which extends well beyond Waitrose and encompasses both luxury and value brands’.
Other competitive brands which can boost value to property prices in Hertfordshire, include M&Co, a clothing retailer (+39%), Hob Salons (+28%) and of course the ‘upmarket’ supermarkets such as Marks and Spencer (+9%) and Waitrose (+8%).
There were some exceptions to the rule, however, the general trend was overwhelmingly significant to proving that the high street brand effect does very much exist and if you’re looking to buy or sell property, a reputable brand may help. In a world where retail giants are taking over our shopping districts, it’s reassuring to know where we shop actually does carry an added value!
