Chichester_1280x540px_Fade
Residential property

Living near a top restaurant can add to property values

Q1 2017

January is traditionally the season for new healthy eating regimes, but for those foodies that can’t resist indulging, top restaurants are having a surprising effect on house prices.

According to the latest research from the Halifax, the average price of a house in the same postcode as a restaurant with a Michelin star is £527,690, compared with an average of £351,834 for the wider local area, equating to a 33% premium. Indeed, over the past decade, the average house price of all properties close to Michelin-starred restaurants has risen by a significant 64%.

Rupert Lawson Johnston, head of Strutt & Parker's Chichester office, says: "We often hear about Ofsted rated schools and proximity to train stations having big effects on home values, but to be within walking distance of a highly rated restaurant may come as a surprise to some."

"We are lucky enough to have some great restaurants here in Chichester, such as the newly opened ‘Purchases’ on North Street and The White Horse at Chilgrove, and although they might not all be Michelin starred, they certainly get foodies ears pricking. The nation's relationship with food over the past few years has certainly blossomed - shows like the Great British Bake Off and Masterchef have raised our expectations and willingness to experiment with new flavours. London is certainly one of the foodie capitals of the world, having an impact on the surrounding counties. So even being able to walk to a top gastro-pub in the area is a huge plus point for buyers."

In London, the premium to be near a Michelin-starred restaurant is even higher. For example, properties near Michelin-starred La Trompette in Chiswick, west London, are 109% higher than the average. Other top locations on the list include properties close to Michelin-starred Northcote Manor in Blackburn, commanding a premium of 128%, as well as homes near Michelin-starred Alimentum in Cambridge, commanding a 113% premium.

Remarkably, some of the UK's best known restaurants did not feature on Haliax's list. Houses in Bray, home to Heston Blumenthal’s The Fat Duck, are in fact 16% cheaper than the local area. Similarly, homes close to the Olive Room in Ilfracombe, north Devon, are 22% down.

"This shows that it is not just top food that can lift a location," says Rupert Lawson Johnston. "I think it has to be a combination of lots of elements that combine to make a true property hotspot, including transport links, top schools, shops and regeneration. Expensive restaurants often arrive in already well-served locations to ensure enough footfall, so I think it's worth watching those smaller spots where a great restaurant has only just arrived - it's a useful indicator of future affluence and it could very well put a village on the map."