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RESIDENTIAL RESEARCH FOCUS ON: PARSONSSTAINES-UPON- GREEN 2016 THAMES 2018 AFFORDABILITY SUPPLY VS DEMAND COMMUTER LOCATION COMPARISON FIGURE 1 Price growth in Spelthorne, Surrey, ALL IN THE NAME South East, London and UK Prices indexed 100 = Jan 2013 Over the last 10 years Staines has been rejuvenated, culminating in a name change to Staines-upon-Thames Spelthorne South East United Kingdom Surrey London in 2012. 160 Situated in the borough of Spelthorne in commuter belt. In comparison, it might 150 Surrey, in close proximity to Heathrow be argued that Staines-upon-Thames is 140 Airport, the M25 and the M4 Corridor, a relatively undervalued market given its Staines-upon-Thames forms part of geographical location. 130 the Enterprise M3 Local Economic Partnership, the UK’s digital economy However, there are signs that this is 120 hub employing over 50,000 workers. starting to change. During the twelve months to September 2017, house prices On top of a burgeoning local economy, 110 in Staines-upon-Thames increased Staines-upon-Thames is surrounded by 6.6%, outpacing growth of 3% 100 by some of the most expensive real estate in the UK outside of London across Surrey. Despite this recent 90 (figure 2). Towns such as Virginia Water, outperformance, average house prices 2013 2014 2015 2016 2017 Walton-on-Thames, Windsor and in Staines-upon-Thames remain around Source: Knight Frank Research, Land Registry, Weybridge form part of London’s prime 23% below the Surrey average. Macrobond FIGURE 2 Average sale price in the last 12 months Average Sale Price Windsor Year to Oct 2017 )" Heathrow Sub £250,000 Airport £250,000 - £500,000 £500,000 - £1,000,000 £1,000,000 - £2,500,000 £2,500,000 - £5,000,000 £5,000,000+ Staines-upon-Thames )" Virginia Water Shepperton Chertsey Walton-on-Thames )" Weybridge Woking )" Source: Land registry Contains OS data © Crown Copyright and database right 2017 2 Please refer to the important notice at the end of this report FOCUS ON: STAINES-UPON-THAMES the Ministry for Housing, Communities Commuter belt affordability FIGURE 3 and Local Government (figure 5). The Spelthorne also has a lower house price House price to earnings ratio number of households in Spelthorne is to household income ratio – a common House price to household income ratio forecast to climb 24% to 52,000 by 2039 measure of affordability – than the wider according to official projections. Surrey, South East and England markets. The average home costs 7.6 times Staines-upon-Thames has 756 private Spelthorne’s median annual income, units in the development pipeline, according to analysis of Experian and according to Glenigan. Two schemes Land Registry data, as shown in figure 3. exceed 200 units, and are located on This may be one factor attracting greater the High Street and Bridge Street. numbers of Londoners to the town. Data Demand for new homes in Spelthorne from the Office for National Statistics has been boosted by the Help to (ONS) show 58% of residents moving to Buy Equity Loan scheme, which has Spelthorne were from London in 2016, accounted for 144 sales since its up from 51% in 2013. inception in April 2013. We expect this 7.6x 8.3x 8.0x 9.5x 7.7x The private rented sector is the fastest trend to continue in the new homes growing tenure type across the UK, sales market. and accounts for a fifth of the housing Spelthorne Surrey South East London England stock in Staines-upon-Thames (figure Connectivity Source: Experian, Land Registry 6). Demand for rented accommodation Heathrow Airport and the air freight comes mainly from young professionals sector are two of the largest local FIGURE 4 and students at the Royal Holloway employers in Staines-upon-Thames, Housing stock by age University in Egham, home to more with over 6,000 employees of Staines-upon-Thames than 9,000 students, Mosaic household Heathrow Airport living in the borough analysis shows. of Spelthorne. Other large employers include BP, Shepperton Studios, 34.2% A lack of new homes British Gas and Wood Group Kenny. 30.8% As such, a considerable proportion of As a whole, the UK has an undersupply working residents in Staines commute 24.6% of new homes and Spelthorne is to neighbouring boroughs as opposed no exception. to central London. This is evidenced by There were 347 net additional dwellings commuting data from the ONS which delivered in the borough during 2016-17, shows that, of the 18,001 residents 10.4% falling well short of estimated demand. commuting to London boroughs, 54% Spelthorne needs 590 additional homes work in Hounslow and Hillingdon. a year if it is to satisfy the needs of the Around 10% commute into Westminster, Pre 1900 1900-1939 1945-1972 1973-Present growing local population, according to the City of London and Tower Hamlets. Source: Knight Frank Research FIGURE 5 Housing supply vs housing need 600 500 400 300 200 Net additional dwellings 100 0 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 Spelthorne net additional dwellings Spelthorne annual housing need, 2016-2026 Source: MHCLG 3 FOCUS ON: STAINES-UPON-THAMES RESIDENTIAL RESEARCH However, the fundamentals are in place Meanwhile, from 2019, the Elizabeth less than 33 minutes and 40 minutes for Staines-upon-Thames to establish Line (Crossrail) will run from Reading away respectively. itself as a commuter location for the to Shenfield via central London, cutting Further ahead, proposals for a second journey times for millions of commuters. capital. The fastest trains into London Crossrail line, running from South Those living in and around Staines- Waterloo take 35 minutes, a commute upon-Thames will be within a 15 to 20 West London to North East London on a par with Weybridge and faster minute drive of three Crossrail stations (Crossrail 2), include a regional branch than nearby Windsor, Chertsey, Virginia at Iver, West Drayton and Hayes and from Raynes Park to Shepperton, which Water and Egham, as shown in figure 7. Harlington. Travel times to Bond Street would provide Staines-upon-Thames Annual rail season ticket prices are also will be reduced from 38 minutes to less with a fourth Crossrail station within lower than prices for similar tickets from than 26 minutes from the three stations, a 20 minute drive of the town centre. stations in the surrounding area. with Liverpool Street and Canary Wharf However, it is worth noting that Crossrail FIGURE 6 Tenure in Staines-upon-Thames OWNED OWNED WITH PRIVATELY SOCIAL OUTRIGHT A MORTGAGE RENTED RENTED 26.9% 36.5% 20.3% 16.3% Source: ONS FIGURE 7 Commute and travel time comparison STAINES-UPON-THAMES WEYBRIDGE WINDSOR CHERTSEY VIRGINIA WATER EGHAM FASTEST TRAIN TO LONDON FASTEST TRAIN TO LONDON FASTEST TRAIN TO LONDON FASTEST TRAIN TO LONDON FASTEST TRAIN TO LONDON FASTEST TRAIN TO LONDON 35 MINS 32 MINS 29 MINS 53 MINS 45 MINS 41 MINS SEASON TICKET PRICE SEASON TICKET PRICE SEASON TICKET PRICE SEASON TICKET PRICE SEASON TICKET PRICE SEASON TICKET PRICE £3,356 £3,824 £3,712 £3,824 £3,792 £3,584 DRIVE TIME TO DRIVE TIME TO DRIVE TIME TO DRIVE TIME TO DRIVE TIME TO DRIVE TIME TO CENTRAL LONDON CENTRAL LONDON CENTRAL LONDON CENTRAL LONDON CENTRAL LONDON CENTRAL LONDON 53 MINS 60 MINS 55 MINS 58 MINS 57 MINS 55 MINS DRIVE TIME TO DRIVE TIME TO DRIVE TIME TO DRIVE TIME TO DRIVE TIME TO DRIVE TIME TO HEATHROW AIRPORT HEATHROW AIRPORT HEATHROW AIRPORT HEATHROW AIRPORT HEATHROW AIRPORT HEATHROW AIRPORT 9 MINS 16 MINS 14 MINS 14 MINS 12 MINS 10 MINS 4 STAINES-UPON-THAMES FASTEST TRAIN TO LONDON DRIVE TIME TO CENTRAL LONDON DRIVE TIME TO HEATHROW AIRPORT 37 MINS 1 HR 20 MINS 1 HR 20 MINS FOCUS ON: STAINES-UPON-THAMES RESIDENTIAL RESEARCH 2 is not expected to be operational until Valley Regional Park, a popular location at least 2030. for walkers, runners and cyclists. The Elizabeth Line will help to attract The local schools are also a draw. In more businesses into the area, as will the borough of Spelthorne there are 28 plans for the Windsor Link Railway, a schools, of which 22 are rated ‘good’ or privately funded £200 million projected ‘outstanding’ by Ofsted. There are also a that would provide a direct rail link from number of independents schools within Staines-upon-Thames to Heathrow a short drive of the town. Such a large Airport, as well as improving connectivity provision of quality schooling may appeal to Windsor, Slough and Reading. The to young families looking to move out of line will potentially be in operation from 14.2% London in the search for more space. 2022, subject to planning. forecast house price growth – South East A local retail hub Outlook England, 2018-2022 The combination of affordability, Staines-upon-Thames shares a direct train link into London which takes characteristics with surrounding towns less than 40 minutes, a bustling high that form London’s prime commuter belt. Lining both banks of the River street, almost four miles of river frontage, Thames, the town has almost four proximity to green spaces and Heathrow miles of river frontage with homes, Airport will all continue to contribute pubs and restaurants overlooking the towards Staines-upon-Thames becoming river, interspersed by rowing clubs. an increasingly popular location for buyers The town is on the edge of the Colne from London and further afield. KEY FACTS South East house price forecast Home-ownership: 63.4%, 2018-2022: 14.2% in line with UK average Staines-upon-Thames Proposed £200m WindsorLink Average monthly rent, Private Rented Sector Stock development pipeline: Railway, providing a direct rail link to two bedroom flat: £1,201 20.3% 756 new homes Heathrow Airport
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