Houses sold near a Wetherspoons pub could cost Brits considerably less than the local average, according to new research.
Unlike the well-known “Waitrose effect,” which boosts properties near one of the up-market stores by as much as £36,000, the Wetherspoons effect makes 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.
According to Mojo’s data, the cheapest areas to live near a Wetherspoons are all based in the North, with house prices near a Rhyl, Halifax, Middlesbrough, Barrow, and Stockton Wetherspoons all coming in at under £56,000.
When looking at the most expensive areas near a Wetherspoons, eight of the top 10 are all based in London. Holborn comes in top place, with houses near a Wetherspoons costing over £1.6m. Leicester Square, Cricklewood, Hammersmith, and Whitechapel round out the top five, with properties also costing over £1m.
“With most Wetherspoons in inner city or 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,” Andrew Gorry, director of digital at Mojo Mortgages, said.
Mojo also discovered that 88% of houses within walking distance of a McDonald’s cost less, with 22 areas being cheaper by more than 50% of the average local price. Houses sold near a McDonald’s in Halifax, Grimsby, Chelsea, Middlesbrough, and Stockport are priced more than 65% lower than average.
In contrast, houses sold near a McDonald’s in Doncaster are 50% more expensive than the local average. Houses near a McDonald’s in Marylebone, Morecambe, Manchester, and Macclesfield are at least 35% more expensive.
The cheapest areas to live near a McDonalds are again all Northern-based, with house prices near a McDonalds in Grimsby, Halifax, Middlesbrough, and Burnley all coming in under £50,000.
When looking at the most expensive areas near a McDonalds, the top 10, with the exception of Windsor, can all be found in the capital. Houses near a Marylebone McDonald’s are the most expensive, with properties costing over £2.6m. Soho, Holborn, and, Leicester Square follow closely behind at over £1.25m.