A hedonic model of the association between grocery brand provision and residential rental prices in England
International Journal of Housing Markets and Analysis
ISSN: 1753-8270
Article publication date: 29 January 2021
Issue publication date: 23 July 2021
Abstract
Purpose
This study aims to measure the association between local retail grocery provision and private residential rental prices in England. Renting is an important sector of the housing market in England and local grocery provision is an important aspect of service provision and consumers are known to be highly sensitive to the branding of this type of retailing.
Design/methodology/approach
This research uses a novel data source from a property rental Web platform to estimate a hedonic model for the rental market. These models incorporate information on the nature of the properties and their neighbourhoods, with an emphasis on how different retail brands are associated with rental prices. This retail brand is captured on two scales: the provision of local branded convenience stores and the provision of larger stores.
Findings
The study finds clear differentials in how the local grocery brand is associated with rental prices. When controlling for commonly explored confounding factors, “Luxury” retailers such as Waitrose and Marks and Spencer are associated with higher rental prices, while “Discounter” retailers are associated with lower rental prices. This finding has many implications, particularly in relation to potential price changes in an already challenging housing market for many people.
Research limitations/implications
This is an observational study and as such only associations (not causation) can be implied by these findings.
Originality/value
The focus of this research is on the private residential property market, an important market in England but one that has enjoyed less scrutiny than the sales or socially rented markets. Rather than using general accessibility to retail, this research has differentiated the association by the retail brand and store size, two very important aspects of consumer choice.
Keywords
Acknowledgements
The authors would like to thank the referees who provided insightful commitments on earlier drafts of this article.
Funding: This work was supported by the ESRC funded Consumer Data Research Centre for CDRC – Grant reference – ES/S007164/1.
Citation
Clark, S., Hood, N. and Birkin, M. (2021), "A hedonic model of the association between grocery brand provision and residential rental prices in England", International Journal of Housing Markets and Analysis, Vol. 14 No. 4, pp. 680-700. https://doi.org/10.1108/IJHMA-05-2020-0062
Publisher
:Emerald Publishing Limited
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