Gold-star dining: how living near a top restaurant can boost property values

What makes a residential area desirable?

The traditional things people look for when choosing an area to live in are good schools, fast and convenient transport links, a healthy supply of shops and amenities, and a low crime rate. But recently a new phenomenon has taken hold which is having a positive effect on property prices in the areas where it has appeared. It has become known as the ‘Waitrose effect’.

Lloyds Bank carried out a survey last year which revealed that living near a popular supermarket could considerably boost the price of property in the area. Waitrose seemed to be the best supermarket to be near to in terms of adding the most value to property prices, while Marks & Spencer came a close second.

But it is not only being close to supermarkets that can increase the price of a property. Property prices in Marylebone have increased in recent years, while areas such as Mayfair have seen prices drop slightly. This increase has been attributed to the ‘Chiltern Firehouse effect’.

The Chiltern Firehouse

For the uninitiated, The Chiltern Firehouse was once a fire station. Built in 1889, it has since been converted into a 5-star restaurant and hotel. And this 5-star restaurant and hotel has worked miracles at attracting a string of familiar names and celebrities to its door. The Chiltern Firehouse’s fame and influence, due to its starry clientele, has helped Marylebone to buck the trend in falling property prices in central London.

It must be mentioned that there are many excellent restaurants in Marylebone, and doubtless they also play a part in the wider attraction of Marylebone.

And it is not only Marylebone that has enjoyed the benefits of the ‘Chiltern Firehouse effect’.
Paddington has also experienced an increase in property prices over the past year. Meanwhile, a survey carried out by Halifax revealed that the average price of a property in a postcode area containing a Michelin-starred restaurant will be around £150,000 higher than a similar property outside the Michelin postcode area. And central London is one of the food capitals of the world, so being close to a five-star restaurant or even a gastro pub could boost the price of a property.

However, having a five-star restaurant in the area alone cannot guarantee a boost in property prices. Restaurateurs will look to open new venues in areas which are already well-established locations to ensure a healthy footfall. The secret is to locate an area where a top-class restaurant has just arrived.

This will indicate that the location may become a property hotspot, with property prices set to rise.  And this will make buying in this area a profitable investment if purchased before the ‘Chiltern Firehouse effect’ – or similar – has taken hold.

Identifying property hotspot areas requires knowledge and experience of those areas. We have spent many years monitoring how various central London locations, including Marylebone, have evolved into property hotspots. For property buying, selling or investment advice in central London, get in touch.