House prices have remained buoyant in recent months thanks to the Government’s decision to extend the stamp duty holiday and the furlough scheme. The stamp duty holiday, which allows buyers purchasing a property for £500,000 or less to save potentially thousands, has also caused a surge in buyer demand. Lockdown has seen Britons re-evaluate property desires as more people work and spend time at home.
Although non-essential shops have remained closed for some time, the convenience of living close to the high street can “boost the sum a buyer is willing to pay for a property”, according to Founder and Managing Director of BuildScan, Harry Yates.
So what will happen if high street shops across the UK close?
Mr Yates said the “decline of the Great British high street” is a concerning factor in regard to local property market values.
However, properties located close to a John Lewis store are likely to have a higher price tag than the wider area.
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He said: “The Waitrose effect has been well documented and it certainly seems as though the same goes for the parent company of John Lewis, with property prices surrounding these stores outperforming the wider area by some margin.
“The John Lewis stores that do shut permanently will be sorely missed on our high streets and it’s sad to see another household name become a casualty of the current pandemic.
“However, homeowners in close proximity to these stores are unlikely to see the value of their property fall as a result.
“While these types of brand names act as indicators of a more affluent property market, they aren’t the driving factor behind higher house prices, often following the regeneration of an area and the resulting revival of the local market there.”
Although this is good news for homeowners located close to John Lewis, with more people shopping online, the high street could continue to decline and have an impact on the local property market.
Mr Yates added: “The wider decline of the Great British high street is perhaps a more concerning factor with regard to local property market values.
“We’re seeing more and more businesses struggle in a bricks and mortar capacity as consumers choose to spend their money online.
“High street business brings a big boost to the local economy providing jobs for many in the area.
“The convenience of living near the high street can also boost the sum a buyer is willing to pay for a property.
“If the high street continues to decline there’s a very real chance that it will also pull the local property market down with it.”
The biggest difference in house prices close to John Lewis is surrounding the store in Oxford Street.
Property process in the W1C postcode average at £2.4million, which is 153 percent more than the wider average across the City of Westminster (£930,070).
House prices surrounding the Stratford City John Lewis are 76 percent higher than the wider average of £382,752 in Newham.
Other areas with some of the highest John Lewis house price differences include Solihull where they are 35 percent higher, Ashford where they are 33 percent higher, Cheadle (31 percent), Edinburgh (20 percent) and Tunbridge Wells (19 percent).