Houses falling within walking distance of a Wetherspoons pub could cost considerably less than the local average, according to new research. In stark contrast the “Waitrose effect”, which increases propertly value near one of the up-market stores living near a Wetherspoons effect causes property prices drop.
Mortgage broker Mojo Mortgages compared the prices of houses sold in the last 12 months within walking distance of 184 Wetherspoons pubs to the average local price in the area. It found that houses within walking distance of a Wetherspoons cost over a quarter (27%) or £70,000 less.
In 86% of locations, the cost of houses within walking distance of a Wetherspoons was less than the local average. Moreover, in 28 of the areas sampled, houses sold near a Wetherspoons cost at least 50% less. Houses sold near a Wetherspoons in Halifax, Rhyl, Kidderminster, Walsall, and Preston were more than 66% cheaper.
In Crinklewood, however, houses sold near a Wetherspoons were 88% more expensive than the local average, while in Newcastle and Cambridge, they were 66% and 50% more expensive.
Andrew Gorry, Director of Digital at Mojo Mortgages, said: ‘With everyone aware of the Waitrose effect, we wondered whether any other “effects” existed in the housing world in Britain. ‘Although Wetherspoons is certainly a part of Britain’s thriving pub culture, we were curious to see whether there was a pattern between house prices and distance from one of their pubs.
‘With most Wetherspoons in inner city/town areas, it’s unsurprising to see that in the majority of places, houses sold near a Wetherspoons are cheaper than the local average price. More than anything else, this provides an interesting alternative perspective on house valuations.’