CONTENTS
Sutton investment case 3 At a glance 5 Introducing Hackbridge 6 Employment nodes
Sutton real estate outlook 8 Supply 9 Demand 10 Sales market 11 Rental market 12 Value map
River Wandle Apartments 14 Introduction 16 Local area 24 Specifications SUTTON INVESTMENT CASE
AT A GLANCE
Employment
Sutton boasts a 78.2% employment rate, above the 72.9% London average
Home to the Institute of Cancer Research and the Royal Marsden NHS Foundation Trust
The creation of a life sciences hub in Sutton will contribute GBP1.1 billion annually to the UK economy, creating 13,000 jobs over 20 years
Population
Between 2001 and 2011 Sutton experienced 5.7% population growth, with a further 2.8% rise by 2014
20,000 new residents will call Sutton home in the decade from 2015 to 2025 – a 9.8% increase
Regeneration
Sutton Council has earmarked development funds to upgrade Hackbridge into a ‘district centre’, increasing the area’s retail offering and amenities
Felnex Trading Estate is being rejuvenated into a mixed- use destination featuring 805 housing units, a supermarket, shops and commercial quarters
The redevelopment of land north of Hackbridge Train Station will deliver over 200 residential units
3 SUTTON INVESTMENT CASE
HACKBRIDGE The UK’s first “sustainable suburb”
Offering all the benefits of proximity to the capital, the London Borough of Sutton is unique. Green, expansive parks combine with distinctive town centres to offer a peaceful but vibrant lifestyle.
Nestled between the banks of the meandering River Wandle and Beddington Park, the district of Hackbridge is perhaps most famous for being home to the groundbreaking Beddington Zero Energy Development.
Known as ‘BedZED’, this eco-friendly residential community features solar panels and other carbon- neutral sustainability features such as re-usable rainwater channels.
Alongside ambitions to become the UK’s most sustainable suburb, Hackbridge is also set to benefit from a number of new regeneration schemes, including the transformation of the Felnex Trading Estate into a lively mixed-use residential and commercial destination.
5 SUTTON INVESTMENT CASE
KEY EMPLOYMENT NODES
Central London CENTRAL LONDON 39,000 new jobs by 2025 (+10% from 2015) for the city of London
The city of London generated GBP45 billion in economic output (GVA) in 2014
Over 450,000 people employed in the city of London 25 mins
Sutton town centre
Home to over 6,800 businesses
The London Cancer hub, a major life-sciences campus, will create over 13,000 jobs and contribute GBP1.1 billion annually to the UK HACKBRIDGE economy
Unemployment rate of 0.4%, against London average of 1.4%
6 mins 23 mins Croydon
Over 12,500 workplaces employing more than 110,000 people SUTTON CROYDON Over 2,500 companies were founded in Croydon last year TOWN CENTRE Fastest growing economy in the UK with annual GVA growth of 9.3% as of August 2016
‘The Silicon Valley of South London’ - Croydon Tech City is the 10th largest tech/media hub in London
5th largest cluster of financial services firms within London; home to AIG, Aon, Goldman Sachs, ING
6 Journey times are taken from the TFL website and reflect the quickest journey time 7 REAL ESTATE OUTLOOK
SUPPLY DEMAND
Sutton had one of the lowest levels of residential units Property demand in Sutton recorded triple digit growth completed in 2014 at just 232 units and only had 277 units (110%) from 2016 to 2017 in terms of change in available stock under construction during the same period versus total sold
Twelve key sites in Sutton One Housing Zone have been A majority of this demand is from those looking to get on the identified for residential development to deliver crucial ladder for the first time. Recent research* shows that Sutton supply; five in Hackbridge and seven in Sutton town centre is one of the capital’s most popular boroughs for first-timers. Of all the flats sold here, 63% are to first-time buyers Sutton’s largest new development is Sutton Point, a mixed- use scheme near Sutton station offering 332 apartments Sutton is one of the best places in the capital to raise a family, and a hotel around a new public square, due to complete with the area offering high-quality education and affordable in autumn 2018 childcare, low crime rates and access to amenities and green space Current regeneration plans for Felnex Trading Estate and the land north of Hackbridge train station will deliver just over Sutton is one of the south east Zone 5 locations where 1,000 new homes demand and price growth are rising the fastest
In 2015-2016, housing supply met only 31% of the annual household growth requirement
LONDON BOROUGH OF SUTTON Housing supply as a percentage of annualised household growth (2014 - 2039)
31% of demand met
69%
supply shortfall HOUSING SUPPLY (2015-2016)
8 SOURCE: CIVITAS * SOURCE: HAMPTONS INTERNATIONAL 9 REAL ESTATE OUTLOOK
SALES MARKET RENTAL MARKET
Sutton has a higher percentage of owner-occupiers than the Sutton rents increased from GBP855 pcm in Q4 2011 national average at 68% versus 63.4%, driving future liquidity to GBP1,169 in July 2017; a 36.7% rise for sales Due to excellent connectivity, Sutton is particularly well-placed While price growth in some parts of central London has to take advantage of the ripple effect from central London decelerated recently, average property prices in Sutton grew by 15.48% in the 12 months to Q3 2016 GCSE results released by the Department for Education put Sutton as the fourth-highest performing area in the country 59.9% total average property price growth in the five years to May 2017 Sutton was voted one of the top five happiest places to live in London in 2016 House prices in the borough of Sutton are predicted to rise by an average 4.5% each year from 2016 to 2032 Savills predicts that rents in London will rise by 24.5% over the next 5 years; higher than the expected 19% rise across the UK AVERAGE HOUSE PRICES IN NEIGHBOURING AREAS:
The Royal Marsden Hospital is a major local employer - driving demand for rental stock and supporting values
HACKBRIDGE WALLINGTON CARSHALTON SUTTON TOWN GBP328,560 GBP346,762 GBP376,429 CENTRE GBP387,158
10 SOURCE: FOXTONS, JUNE 2017 11 REAL ESTATE OUTLOOK