While we’re all aware that location, location, location is everything when it comes to the property market, how can the retail outlets, restaurants and pubs in the local area affect house prices?
The “Waitrose Effect”
You may have already heard of the “Waitrose effect”. This term refers to the fact that living in proximity to a branch of Britain’s most upmarket supermarket can boost property prices in the local area, by up to as much as tens of thousands of pounds. This theory was borne out by a Barclays study carried out in 2018.
Bearing in mind the “Waitrose effect”, Mojo Mortgages decided to conduct its own research into the effects of living close to a Wetherspoon’s pub. Mojo studied 184 areas within walking distance of a pub operated by Wetherspoon’s.
The “Wetherspoon Effect”
Mojo’s research found that living close to a Wetherspoon could have a dramatic effect on property prices in the area. Homes within walking distance of one of the pub chain’s outlets could see their price tag fall by an average of 27%. In 28 of the 184 areas, prices dropped by a whopping 50% where a Wetherspoon’s pub was nearby. The worst affected areas included Preston, Halifax and Rhyl, where prices fell by up to 68%.
It’s not all bad news, though. The same study discovered that having a local Wetherspoon could actually increase a property’s value in some places, and this was found to be the case in Cambridge, Cricklewood and Newcastle, where prices increased by 50%, 88% and 66% respectively.
The Wirral has seven Wetherspoon pubs in total – in Birkenhead, Wallasey, New Brighton, Moreton, Hoylake, West Kirby and New Ferry.