The Wetherspoon effect: how living near one of these chain pubs could cost you

Research shows that homes sell for less than the local average if they are near a Wetherspoon pub

You’ve probably heard of The Waitrose Effect, whereby homes close to an upmarket supermarket see their asking prices soar but a new study suggests there's a flipside to this phenomenon; that at the other end of the scale houses near Wetherspoon pubs don’t fare so well.

Last year a study by Barclays found that asking prices of houses located within walking distance of a Waitrose can be boosted by up to £43,000, while homes located near one of the notoriously low-cost pubs from the Wetherspoon chain see their value plummet, according to new research.

Mortgage brokers Mojo Mortgages looked at what homes within walking distance of 184 Wetherspoon pubs sold for over the past year and found that in 86% of places they sold for less than other local properties – 27% on average. In 28 of the areas sampled, the homes sold for 50% less than the going rate.

the correlation was found to be most severe in Halifax, Rhyl, Kidderminster, Walsall and Preston, where homes sold for as much as 68% under the average property value for the area.

However, the same research found that having a Wetherspoons close by is not always a bad sign – in Cricklewood homes close to one of the chain pubs sold for 88% more than the local average (with house prices averaging out at over £1m) while in Newcastle and Cambridge, houses sold near a Wetherspoon pub were 66% and 50% more expensive than the local average, respectively.

In addition, Mojo looked at how the proximity of a McDonald’s affected sales prices and found that on average homes fell 25% below the average price, with a staggering 22 of the areas tested revealing a 50% drop in prices.

The worst-hit areas were Halifax, Grimsby, Middlesborough, Stockport and (somewhat surprisingly) Chelsea, where homes close to a McDonald’s sold for between 65-73% less than other properties in the same area.

However, the research didn’t take into account other factors likely to affect house prices, including local schools, transport links and crime rates. While the upmarket Waitrose chain target affluent neighbourhoods to open new stores, it's undoubtedly true that Wetherspoons tend to take on rundown or derelict buildings in less wealthy parts of the country, and this can't be proven to be causing the drop in prices.

Wetherspoon spokesperson Eddie Gershon was scathing of the research, telling The Sun: “Wetherspoon run excellent pubs and have an outstanding reputation for converting derelict buildings into its pubs. Maybe the company behind the research could do a further survey to see how much house prices are worth next to derelict buildings before they are completely restored by Wetherspoon.”

Top 10 places worst hit by The Wetherspoons Effect

Place	Average sales price	Average price near a Wetherspoon	% Difference
Halifax	£151,085	£45,000	-70
Rhyl	£136,675	£43,200	-68
Kidderminster	£187,129	£59,500	-68
Walsall	£170,495	£58,200	-66
Preston	£165,687	£56,600	-66
Barrow	£146,086	£55,600	-62
Middlesborough	£137,637	£52,600	-62
Bolton	£161,691	£62,600	-61
Rugby	£259,622	£102,200	-61
Stockport	£230,468	£92,000	-60

Photo: Claudio Divizia / Shutterstock.com