RE-PRICING OF 12 MONTH MOORING PERMITS 2015 MOORINGS AREA REPORT FOR

Introduction

This report provides the rationale for mooring price decisions for 2015.

VAT is payable at the rate set by the government for the date when the permit is purchased.

Profiles of privately operated sites in the area are appended. We researched and compared their prices with the Canal & River Trust rates to inform our judgements, but because this data is commercially sensitive it has not been included.

Local market overview

The London group has been defined as sites broadly within the M25 area but also includes the Rivers Lee and Stort which partly extend beyond this boundary, along with a length of the Grand Union Canal in similar circumstance. It also includes the Rivers Thames and Wey (not Trust waterways).

There is some diversity of product within the area, from narrowboats and small cruisers found predominantly on the Grand Union, Regents Canal and Lee & Stort, to Docklands and the tidal Thames, frequented by large sea-going craft. There is also a mixture of mooring uses – leisure, ‘pied à terre’ and residential mooring sites.

Including Canal & River Trust directly managed moorings, the London market area has approximately 2800 moorings on the GU Canal, Branch, Slough Arm, Regents Canal, Rivers Lee and Stort and London Docklands. We estimate that there are circa 4,000 moorings within the local market not managed by the Trust; these include those located in marinas along the tidal Thames, the non-tidal Thames and the River Wey.

Given the predominantly urban nature of the of the market area, and high land values coupled with the prospect of greater profitability from land-based developments, the creation of new large-scale mooring sites continues to be relatively unattractive to landowners. Creation of small-scale moorings by third parties is gradually increasing, though few have proceeded to implementation at this time. An agreement was made in 2014 for an online development consisting of 5 residential berths on the Regent’s Canal, with discussions currently ongoing for an additional two locations on this same waterway which will provide a total of 11 further residential berths.

The Trust are currently developing schemes for the creation of four new directly managed mooring sites, which will see a further approx. 20 new berths in the region in 2015/16. The supply of moorings has not increased greatly since 2012. Consequently demand pressure on moorings, particularly those in central areas, remains very high.

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As acknowledged in the GLA Report of 2013 (‘Moor or Less’: Moorings on London’s Waterways - http://www.london.gov.uk/mayor-assembly/london-assembly/publications/moor-or-less-moorings-on-london- s-waterways) the housing market in the Capital, with record levels of house prices and rents, is increasingly leading to residing on the waterways being seen as a more affordable option for living in London. The Trust’s National Boat Check in 2014 highlighted that since 2007 the number of boats on the Trust’s waterways in London (either with or without a home mooring) has grown by 1,000 – an increase of 50%. With a relatively static provision of long term moorings in the region over this time frame, this huge increase in the numbers of craft has consequentially increased demand for available berths (even if only a small fraction of boat owners without a home mooring are actively looking to secure a long term berth).

The Central area sees demand far outstripping supply, as demonstrated by the auction results. Any vacancies that have arisen have been allocated via the mooring auction system, where berths on the Regent’s Canal and routinely exceeded the published Guide Price, in some instances exceptionally so.

Considering the wider area however, some sites consistently achieve above the Guide Price while others persistently have berths unallocated. It is clear that location is key.

At a limited number of mooring sites where boats are permitted to be sold on the mooring, there is continued evidence of a premium beyond the value of the craft being achieved1. These premiums are a continued indication that the value of the mooring is greater than that being reflected in the annual mooring fee. Between craft being sold on the mooring and the infrequency of residential berths being vacated, some of the Trust’s directly managed sites have seen few or no vacancies become available over the past three years. Locally, where vacancies have occurred, we have drawn on the auction results in reaching our 2015 pricing decision. The table below summarises the results of auctioned berths from 2012.

Despite localised variances, the evidence available indicates overall demand for moorings continues to be strong, exceptionally so in central areas. If the growth of use of London’s waterways for residential purposes continues, even if at a slower rate than has been seen thus far, this demand is anticipated to increase.

Analysis of auctioned vacancies Total Auctions Total Total No. Current (inc. Relists) Successful of Site Name Capacity Since April 2012 Auctions Bidders Blackwall Basin 27 7 7 19 Engineers Wharf 23 47 12 20 Batchworth 28 11 9 26 Springwell Towpath 31 9 8 30 Uxbridge Towpath 14 8 6 10 Browns Meadow 21 26 13 19 Cowley North Offside 28 14 10 14 Cowley North Towpath 28 14 5 11 Cowley South 18 8 1 2 Willow Wren Wharf 27 22 9 13 Three Bridges 7 1 1 2 Island 37 35 15 30 Andersons Wharf 3 3 3 14 Stonebridge South 43 8 7 22 Millwall Outer Dock 13 3 3 4 Ice Wharf Marina 25 2 2 11 Fife Terrace 4 2 1 7 Moorhen Marina Leisure 41 21 11 17 Moorhen Marina Residential 41 21 4 9

1 For example, adverts in autumn 2014 for a 70 FT boat at a Trust site in the London Borough of suggests a difference of some £80,000 between the asking price and the asset value of the boat (without the mooring).

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Pricing Conclusions

Information available from other mooring site operators shows that the Trust is not in a dominant position within the market area – it has a relatively small share of the overall mooring market in the region. Despite data available from other operators being more extensive at the top end of the market on and off the Trust’s network, we have been able to make reasonable comparisons relevant to our simpler mooring sites too.

The majority of prices have been increased by between 2.5% (inflationary rate) and 5%, which we believe is in line with private operators on and off the Trust’s network. An extremely small number of mooring sites in exceptional circumstances are seeing no increase for 2015/16. At a number of sites, primarily in the Central area, prices are planned to increase above 5%, however with good reason based on the results of market analysis.

Challenges to Pricing Decisions We have made the pricing recommendations below based on a thorough review of auction results and local knowledge. It is our policy, set at Board level, to set prices which reflect market rates and to compete fairly with private operators. The Trust has neither powers nor duty to provide subsidised moorings. If you feel that the price decision made for your mooring site is unjustified having read this report, we ask that you write to the Head of Direct Managed Moorings explaining why you think it is the case. Please explain the reasoning for your challenge including evidence such as price and descriptions of nearby privately operated mooring sites. We will not amend the price without this evidence. We will consider your representation and respond in writing within two working weeks. If you are not satisfied with the response, you may request that the matter is dealt with through our formal complaints procedure.

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Pricing Conclusions The table below summarises our site-by-site conclusions across the area. Prices include VAT @ 20%. 2014 Price from Site Name Notes on pricing decision Price April 2015

Popular offside private site with garden plots. One vacancy sold at guide. Taking into account the differences in facilities and the immediate environment this price is currently under the market rate. Cassio Bridge Lock £107.70 £113.09 Nearest comparable competitor charges considerably more (£150+ per meter), but does have the benefit of all relevant facilities. Increase to reflect major work. Lovely location and lots of interest in the site. Offside rural site, should be in line with Cassio prices though consideration needs to be given for lack of nearby Common Moor £94.79 £104.27 services. Nearest comparable competitor charges considerably more (£150+ per meter), but does have the benefit of all relevant facilities. This is a private basin (off the main line) with water, electric, land and garden plots and is highly sought after. No auctions at site. Nearest comparable competitor charges considerably more, but Chess Basin £114.55 £117.42 does have the benefit of all relevant facilities. Based on comparisons drawn, current fee is identified as below market rate Popular site, nine vacancies selling well at auction. Seven berths sold well above guide with Batchworth Lock £96.30 £101.12 average prices per metre £105. Nearest comparable competitor charges considerably more but does have the benefit of all relevant facilities. Large site, little churn. Six berths in two years sold at auction all achieving well above guide (2-6 Springwell Towpath £88.85 £93.29 bidders on each vacancy). Average price berth meter £119. Pricing should be in line with Batchworth though consideration needs to be given due to lack of facilities. Six berths sold at auction. Three above guide price, three at reserve. Results of the auctions to date (despite being mixed), along with comparisons with other moorings in the vicinity indicates the Uxbridge £103.04 £106.12 current fee is below market rate. Nearest comparable competitors charges more (£112 - £216), but each does have the benefit of all relevant facilities. Basic Towpath site. No facilities close by. High churn but vacancies constantly sell at auction. Browns Meadow £95.55 £97.93 Nearest comparable competitor charges considerably more (£112- £216), but does have the benefit of all relevant facilities. Large site, little churn. Offside site with garden plots. Vacancies sell well at auction. Nearest Cowley North Offside £123.24 £126.94 comparable competitor charges considerably more (£155 per metre), but does have the benefit of all relevant facilities, indicates the current fee is below market rate. Site at full capacity. Some churn but sells well at auction. Nearest comparable competitor Cowley North Towpath £100.04 £103.03 charges considerably more (£155 per metre), but does have the benefit of all relevant facilities,

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2014 Price from Site Name Notes on pricing decision Price April 2015 Little churn at site, Nearest comparable competitor charges considerably more (£155 per metre), Cowley South Offside £123.24 £126.94 but does have the benefit of all relevant facilities, indicates the current fee is below market rate. Transferable residential moorings. No specific site improvements. Nearest comparable Benbow Waye £202.31 £212.44 competitor charges considerably more (£7816 per residential berth) but does have the benefit of all relevant facilities. Recently refurbished layby moorings, limited number of assignable residential berths. Structured Willow Wren £4028.55 £4431.40 pricing plan post-works in place for these berths – 2015/16 sees a planned increase applied to permits issued to these craft. Comparison with nearest other operator supports planned increase.

No vacancies arisen. Ongoing disruption due to redevelopment works adjacent to site, however Norwood Top Lock £132.29 £135.60 comparison with other operators indicates current fee is below market rate.

Results of the auctions to date (despite being mixed), along with comparisons with other moorings Three Bridges £120.83 £123.85 in the vicinity indicates the current fee is below market rate.

Mixed results in allocation of berths. Based on comparisons drawn with other operators, current fee Brentford Island Non Res £5001.61 £5126.65 is identified as close to market rate.

Very low churn, with only one vacancy arising in the past two years, allocated for £3.5K over Brentford Island Res £6656.63 £6856.33 Guide. Clearly demonstrates desirability of berths here. Comparison with other operators indicates the current fee is close to the market rate. Low level of churn, no vacancies advertised. Comparisons drawn indicate the current rate is Brentford Semi-Tidal £114.25 £117.11 appropriate for the context of this site.

No vacancies advertised, as project planned at site. Known condition of the site and issues present Bulls Bridge £157.20 £157.20 gives no reason for any variation to the fee here.

Engineers Wharf £5879.96 £5879.96 High turnover site achieving reserve prices or no sales. Price held

Assignable moorings on a popular site in a desirable area. Sales of craft on the mooring have been Kensal Green £6948.72 £7296.16 achieved. Comparison with other mooring sites in the vicinity indicates the current fee here is set below market rate.

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2014 Price from Site Name Notes on pricing decision Price April 2015

Lack of churn coupled with comparison with other sites in the vicinity indicates the current fee here Hormead Wharf £246.35 £258.68 is well below the market rate.

Blomfield Road £505.92 £556.51 Assignable residential moorings in very desirable and sought after location. Residential

Very popular large secured, offside site with garden plots and parking on site. Seven vacancies in the last two years. Vacancies sell highly above guide price. Average price per metre £333 Stonebridge South £181.68 £186.22 indicating the popularity of this location and moorings fee under market value. Evidence indicates the rate here is set too low but with works to the adjacent development due to commence in the near future an inflation only increase is being applied at this time. .

No berths auctioned in the last two years. Nearest comparable competitor charges more (£238) Stonebridge North (linear) £203.86 £214.05 but does have the benefit of all relevant facilities. Clear demand demonstrated by the lack of turnover here.

Stonebridge North £2479.64 £2603.63 No berths auctioned in the last two years. Nearest comparable competitor charges more (£238) (pontoons) but does have the benefit of all relevant facilities. Clear demand demonstrated by the lack of turnover here. No churn. Residential berths highly desirable location though parking and access to site remains a difficultly. Site nearest comparable competitor charges considerably more, but does have the Tumbling Bay Residential £167.16 £173.85 benefit of all relevant facilities. No vacancies arising along with comparison with other sites in the area indicates the rate here is set too low.

Comparison with other operators and results of auctioned berths demonstrate the current fee is Blackwall Basin £400.91 £441.00 below the market rate.

Comparison with other operators and results of auctioned berths demonstrate the current fee is Millwall Outer Short £318.18 £350.00 below the market rate. Comparison with other operators and results of auctioned berths demonstrate the current fee is Millwall Outer Long £379.50 £417.45 below the market rate.

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2014 Price from Site Name Notes on pricing decision Price April 2015

No vacancies arising along with comparison with other sites in the area indicates the rate here is Little Venice Pool £343.82 £378.21 set too low.

Blomfield Road Non £369.53 £406.48 Assignable moorings on a popular site in a very desirable and sought after location. Residential

Maida Avenue £424.39 £466.83 Assignable moorings on a popular site in a very desirable and sought after location.

Assignable moorings on a popular site in a desirable location. Comparison with other sites Lisson Grove £264.41 £271.02 indicates the current fee is below the market rate.

Cumberland Basin non Assignable moorings on popular site in a very desirable location. Comparison with other sites £424.40 £435.00 res indicates the current fee is below the market rate.

Assignable residential moorings on a popular site in a very desirable location. Comparison with Cumberland Basin Res £7933.26 £8131.60 other moorings in the area indicates the current fee is notably lower than the market rate.

Limited number of assignable residential berths in a very desirable area. Two vacancies arisen, Ice Wharf £9834.62 £10326.36 results of which both notably exceeded the Guide.

Residential moorings in very desirable location. Clear demand demonstrated by very low level of Fife Terrace £6776.05 £7453.66 churn, coupled with results of allocated vacancies, consistently exceeding the Guide. Comparison with other moorings in the area highlights a notable disparity in rates, with Wharf Road Wharf Road £5015.66 £5517.23 lower than the market rate. Assignable residential moorings in desirable location. Comparison with other sites in the area Sturts Lock £8154.47 £8358.32 indicates fee is below market rate.

Limehouse Cut

This is a small secure offside site with 3 berths. All sales of these notably exceeded the Guide Andersons Wharf £6425.09 £8995.14 price. Comparison with other operators in the area also indicates the current fee is well below the market rate.

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2014 Price from Site Name Notes on pricing decision Price April 2015 Clear demand demonstrated by no turnover in past 2 years. Comparison with other operators in Abbots Wharf £5591.69 £5871.27 the area indicates the current fee is below the market rate. Four Residential berth sold in last 2 years. Two at reserve, one above reserve and one 1.5k above guide price. Local competitors charge £4455 for leisure berths with full services. Comparison with Moorhen Residential £4413.79 £4634.48 other operators and results of auctioned berths demonstrate the current fee is below the market rate. Mixed results over last two years. All berths selling. 6 at reserve, 1 above reserve and 3 well above reserve. Local competitors charge £4455 per berth non-residential. Comparison with other Moorhen Long Pontoons £2332.71 £2449.35 operators and results of auctioned berths demonstrate the current fee is below the market rate.

Four cruiser berths sold in last two years. Popular site with berths currently priced well below the Moorhen Short Pontoons £1022.81 £1125.09 nearest comparable competitor at £209 -£238 per metre for a serviced Marina.

Jenny Whitehall Head of Direct Managed Moorings

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APPENDIX: MOORING SITES IN LONDON AREA

Site name Setting Mooring amenity Facilities

Marina accommodating narrowboats and river cruisers near Sawbridgeworth, . Rural / picturesque  Water, electricity, pump out, elsan, Hallingbury Mill Rural location on River Stort location. Marina set in enlarged mill stream next to toilets, car parking, security, diesel and historic mill. gas. Dry dock on site

15 moorings located on mill stream adjacent to Brick Brick Lock Rural location on River Stort  Basic facilities such as car parking, Lock, rural / picturesque location water and electricity on site.

Sheerline Semi rural / urban location on River Moorings located on mill stream at Sawbridgeworth, semi  Basic facilities such as car parking, Cruisers Stort rural location water and electricity on site.  Large marina with full facilities such as Semi rural / urban location on junction New marina development (<10 years) run by British Packet Boat Electricity, water, pump out, toilets, of Grand Union and Slough Arm. Waterways Marinas Ltd. Large marina accommodating Marina showers, Elsan disposal and car parking Located on 26 mile lock free pound. 180 boats (predominantly narrowboats) on site. Boatyard / chandlery run by Highline Yachting located on site. Small residential mooring adjoining country park. Very Rural / suburban location adjacent to picturesque location which has a rural appearance. Site  Facilities on site include Electricity, Horsenden Hill Horsenden Hill Country Park accommodates 4 residential moorings and also a water, pump out, telephone connections, commercial trip boat operation. car parking and post facilities.  Extensive range of facilities on site Large linear mooring site offering residential and leisure including water, electricity, Elsan, pump berths for both wide beamed boats and narrowboats. Highline out, toilets, showers, laundry diesel, gas, Rural location on Slough Arm Site located at Iver on Slough Arm. Boatyard and Yachting – Iver large chandlery on site and boatyard chandlery facilities on site. Slough arm is rural for most of services. Site has large car park and its length and very quiet in terms of boating use. also secure access. Staff presence on site 24 hours a day. Large marina on Paddington Arm which is designed around a marina village with residential properties  Range of facilities including water, Willow Tree Urban location (marina village ) on overlooking the basins. Range of berthing options electricity, Elsan, pump out, toilets, Marina Paddington Arm including leisure, pied a terre and residential. Pontoon showers, laundry, diesel, gas, showers, moorings throughout the site laundry. Bar / restaurant on site.

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Site name Setting Mooring amenity Facilities

 Water, electricity, pump out to each Battlebridge Urban setting in Battlebridge Basin on Residential moorings which are centrally located, near to berth, telephone connection, secure Basin the Regent’s Canal Kings Cross access with entry system and code, Elsan, showers and toilets. Managing agent on site. Urban setting in , Residential moorings close to City Lock, Islington. Boats Islington. Basin is located on the  Water, electricity, pump out on site. Wenlock Basin moored within the basin and also fronting on to the offside of the Regent’s Canal and is Secure access to mooring. Post Regent’s Canal privately owned facilities. Moorings in lay by on lock island. Boats moor in Rural location adjoining lock cottage herringbone fashion accessed by pontoons or waterfront  Water, electricity, pump-out and Elsan Stanstead Lock at path. Rural setting and very picturesque location. The on site. Cars can access the site via a village of Stanstead Abbotts is a short walk away swing bridge which crosses the lock.  Basic facilities on site including water, Urban location near the termination of Linear offside moorings located near Hertford Lock and electricity and Elsan disposal. Limited and Basin the River in small offside basin nearby. car parking available on site. Site is close to Hertford town centre which offers many facilities.  Facilities on site include water, Linear moorings on large area of land which adjoins both electricity, Elsan disposal, toilets and Stanstead Semi rural location at Stanstead the River Lee navigation and back stream. Boats are showers. Large boatyard and repair Marina Abbotts. moored both on the river and back stream. Site also has facilities also on site. Site is within the large boatyard with many boats stored ashore. village of Stanstead Abbotts which offers basic facilities.  Facilities on site include water, Springfield Urban location but adjoining parkland Large marina with boats moored both in an offline basin electricity, Elsan disposal, toilets and Marina which gives green outlook and along the river front on the offside. showers. Boatyard and repair facilities also on site. Site is situated around junction of navigation and small South Island Urban location near to Ponders End  Facilities on site include water, back stream. Boats moor both on the navigation and also Marina on the River Lee electricity, Elsan disposal, toilets and back stream. showers. Car parking on site. Site is situated around junction of navigation and  Facilities on site include water, Denham Yacht Urban / Semi-rural location on Grand enlarged back stream. Boats moor both on the electricity, Elsan disposal, toilets and Station Union near to Uxbridge navigation and also back stream. showers. Boatyard / repair facilities on site and large chandlery.

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Site name Setting Mooring amenity Facilities

Pontoon moorings within basin surrounded by residential  Facilities on site include water, Brentford Dock Urban setting - Marina village which properties. Access to the is via a single electricity, Elsan disposal, pump out Marina adjoins the River Thames at Brentford lock which means access is possible for a number of ,toilets and showers. Small shop on site. hours around high water Car parking available Pontoon moorings within basin surrounded by residential  Facilities on site include water, Urban setting - Marina village which properties. Access to the River Thames is via a single Chiswick Marina electricity, Elsan disposal, pump out adjoins the River Thames at Chiswick lock which means access is possible for a number of ,toilets, laundry and showers. Car hours around high water parking available on site High quality and prestigious development with hotel, Urban setting with mixed use offices and leisure uses located around the site. Located  Range of facilities on site including St Katherine’s development surrounding the various next to historic area of London with Tower Bridge water, electricity, pump out, toilets, Dock basins that form the docks. adjacent. Pontoon moorings throughout the basins. showers and laundry. Good public Access to the Thames via lock transport links.  Range of facilities on site including South Dock Urban setting around Surrey Docks, Large marina with pontoon moorings throughout the water, electricity, pump out, toilets, Marina South London basin. Direct access on to the Thames via lock. showers and laundry. Boatyard and repair facilities on site Urban setting in Marina run by Marinas Ltd within which forms the junction of the  Facilities on site include water, Limehouse Limehouse Basin. Pontoon moorings throughout the site. Regent’s Canal and Limehouse Cut / electricity, Elsan disposal, pump out, Basin Site is surrounded by high quality residential River Lee. Basin also gives direct toilets, laundry and showers. Small development and a number of commercial properties. access on to the Thames via run lock chandlery. Car parking available on site.  Floating facilities building on site which Marina run by BWML within Isle of Dogs. Pontoon Urban setting close to Canary Wharf provide toilets, showers and laundry. Poplar Marina moorings throughout the site. Access to Thames via and West India Quay Pontoon moorings have electricity, water large lock and lighting throughout. Car parking on site. Urban setting within Royal Docks in Small marina with access to the Thames via Royal  Facilities on site include water, Gallions Reach Beckton. Site is very close to London Docks main lock. Site is dominated by runway of nearby electricity, Elsan disposal, pump out City Airport airport. Pontoon moorings. ,toilets, laundry and showers. Car parking available on site

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Site name Setting Mooring amenity Facilities

Large high quality marina which offers range of facilities Rural setting in offline lakes on non on site. Extensive boat repair and boats sales operations  Large range of facilities on site including Shepperton tidal River Thames. Picturesque on site. Marina caters for mainly large motor cruisers water, electricity, pump out, toilets, Marina location which is easily accessible though does offer narrowboat berths. Majority of showers and laundry. Boatyard facilities from M25 and SW London moorings are pontoons though some bank-side on site. moorings.

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