Jul 28, 2021
7 min read
The Waitrose Effect is a well-known phenomenon in the property world, put simply if you’re lucky enough for Waitrose to decide to build a new supermarket near your house, it is likely to increase the value of your house by thousands. We’re fascinated by this and wanted to see whether there’s a similar ‘effect’ outside of just a local Waitrose. The boom in takeaway apps such as Deliveroo, especially during the pandemic, seemed like the most likely of all to impact house prices, so we got to researching. Looking to answer whether in 2021, a wider range of Deliveroo options in any given postcode, could actually increase the value of your home?
To do this we crunched A LOT of data, looking at average house prices and both the range and quality of restaurant and takeaway options in every single postcode in the UK.
After the analysis, we can reveal that people living within postcodes with a ‘good’ amount of choice (approximately 100 different options) on the popular takeaway app, can expect their home’s value to be boosted by more than £36,000 on average!
But beyond the amount of choice available, the actual food options can make a lot of difference too, as we all know we can crave some brands more than others. With this in mind, we also delved into which specific food choices are actually adding the most value to your home if you live close to one. If you’re looking to sell soon or buy a new house, then our findings make for fascinating reading!
So, gourmet burger pioneers, Byron Burger top our list for adding the most value on average to house prices. Available in 27 UK locations including London, Ipswich, Leeds, Milton Keynes and York, it’s a popular burger spot for many and will certainly be welcomed with open arms to homeowners in new locations, who could see their house price shoot up by over £33,000!
Caribbean bar and restaurant Turtle Bay is next on the list. Known for its popular bottomless brunches and party vibe, Turtle Bay is even more well-spread out in the UK than Byron Burger, with 41 UK locations and counting. We’ll certainly be keeping a close eye on house prices in Coventry in the months to come as a new Turtle Bay restaurant is set to open there soon. Whether residents will see a £31,000 increase in their house prices as a result remains to be seen.
In third place on our list is the ubiquitous Wagamama. Founded in 1992 to bring Japanese-inspired cuisine to the British market, Wagamama has expanded impressively to include 153 restaurants in the UK. There are not many places that don’t have one in striking distance but you’ve got to live fairly close to one to have it as a Deliveroo option and benefit from the £30,000 boost to your house price. It’s well worth celebrating with a signature katsu curry if this applies to you!
Another popular burger spot is in fourth place, Gourmet Burger Kitchen. Set up by three New Zealanders including world-renowned chef Peter Gordon in 2001, the very first GBK appeared in Battersea, South London. There have been many burger bars that have popped up and tried to emulate the popularity of GBK but few have succeeded. Now with over 40 restaurants across the UK from Basingstoke to Wimbledon, GBK’s handcrafted burgers are loved on takeaway apps, arguably as much as those looking to dine in.
And in fifth place, our love of Italian food comes to the fore with a nearby Prezzo potentially adding £27,000 to the value of houses in the local vicinity. Founded over 20 years ago in November 2000, Prezzo is renowned for converting old buildings of architectural value from their original purpose into a bright and breezy Italian restaurant. There are now over 180 Prezzos in the UK, all serving Italian classics, pizza, pasta, risotto and of course, tiramisu.
To reveal to what extent certain restaurants and a variety of food choices in a local area could impact house prices, we used data from the Deliveroo app to conduct our research.
For every active postcode (approximately 83,000 postcodes), Boomin researchers pulled all of the restaurants available on Deliveroo in the local area, and compared this against both the house price increase from 2018 to 2019 and the house price in 2019. (Data from 2018 and 2019 was used as due to the COVID-19 pandemic, 2020 has seen anomalous inflation in the housing price market).
Our researchers built a regression that estimated how much a category of a restaurant in the local area related to either the house price or the house price growth. Any non-significant (to a p value of 0.95) features were excluded.
All data is correct as of July 2021.