RESIDENTIAL RESEARCH FOCUS ON: PARSONSSTAINES-UPON- GREEN 2016 THAMES 2017 AFFORDABILITY SUPPLY VS DEMAND COMMUTER LOCATION COMPARISON ALL IN THE NAME FIGURE 1 Over the last 10 years the town of Staines has Price growth in Spelthorne, Surrey, been rejuvenated, culminating in a name change to South East, London and UK Prices indexed 100 = Jan 2011 Staines-upon-Thames in 2012 Spelthorne London Emphasising the town’s growing Weybridge form part of London’s prime Surrey United Kingdom popularity, Staines-upon-Thames was commuter belt. In comparison, it might South East 175 named as the number one location in be argued that Staines-upon-Thames is the UK to start a business in 2014 by a relatively undervalued market given its 165 UHY Hacker Young. Situated in the small geographical location. borough of Spelthorne in Surrey, in close 155 proximity to Heathrow Airport, the M25 However, there are signs that this is starting to change. In the third quarter 145 and the M4 Corridor, Staines-upon- Thames forms part of the Enterprise M3 of 2016 house prices in Staines-upon- 135 Local Economic Partnership, the UK’s Thames increased by 16.3%, significantly digital economy hub employing over outpacing growth of 9.5% across Surrey. 125 50,000 workers. Despite this recent outperformance, values in Staines-upon-Thames are still 115 On top of a burgeoning local economy, around 20% below the Surrey average. 105 Staines-upon-Thames is surrounded by some of the most expensive real 95 estate in the UK outside of London Commuter belt affordability 2011 2012 2013 2014 2015 2016 (figure 2). Towns such as Virginia Water, Official data shows that Spelthorne Source: Knight Frank Research/UK HPI Walton-on-Thames, Windsor and has one of the lowest house price to FIGURE 2 Average sale price in the last 12 months 2 Please refer to the important notice at the end of this report FOCUS ON: STAINES-UPON-THAMES income ratios – a common measure offering, this has yet to extend to the FIGURE 3 of affordability – in Surrey. Latest data new homes market. In the last five Spelthorne London House price to earnings ratio from the Government’s own house price years,Surrey 317 new homesUnited Kingdom have been 34.2% affordability index highlights house price built whileSouth Easta further 103 homes are affordability in Spelthorne is significantly16 currently under construction, according below the Surrey average, as shown in data from Glenigan. Looking at the 14 figure 3. wider Spelthorne area, some 1,100 This is likely to attract greater numbers12 of net additional dwellings have been Londoners to the town in search of more delivered since 2011/12, compared to 10 internal and external space. In fact, data a projected 1,360 growth in the number of new households, indicating a 20% Groupedfrom the Office for National Statistics 8 Ungrouped suggests this is already happening – undersupply of housing. 6 nearly two thirds (60%) of residents Over the next five years, current moving to Spelthorne were from London 500 4 projections show that 3,000500 new in 2015, up from 53% in 2013. households will be created in 9.9% 12.9% 10.3% 14.7% 7.6% 400 The Private Rented Sector is the fastest2 Spelthorne. However, the400 current growing tenure type across the UK, pipeline of new dwellings suggest that 0 300 and accounts for a fifth of the housing SpelthornesupplySurrey willSouth undershoot East London demand300England by Spelthorne Surrey South East London England stock in Staines-upon-Thames (figure a third. Of developments within the Source: Knight Frank Research/DCLG 200 6). Mosaic household analysis shows pipeline, two schemes exceed200 200 units, demand for rented accommodation both of which are located in Staines- 100 100 is mainly from young professionals as upon-Thames – on the High Street and FIGURE 4 well as students at the Royal Holloway Bridge Street, suggesting new homes Housing stock by age 0 0 Staines-upon-Thames n n University in nEgham, one of then UK’s top nsupply in the borough will be focused n n n n n 20 universities and home to more than in and around the town. 500 9,000 students. Monthly rental values 500 A total of 101 homes have been currently average £1,106 according to 34.2% purchased through the Help to Buy 400 data from TwentyCi, meaning rental 400 30.8% Equity Loan scheme in Spelthorne, values in Staines-upon-Thames are 28% 300 below the average rent in London. accounting for a fifth of new300 homes 24.6% completions in the borough since its 200 inception in April 2013. We200 expect this A lack of new homes trend to continue in the new homes 100 As a whole, the UK has a chronic sales market. Coupled with100 the backlog 10.4% undersupply of new homes and already in place after long-term under 9.9% 12.9% 10.3% 14.7% 7.6% 0 Staines-upon-Thames is no exception. supply and supply demand imbalance,0 Spelthorne Surrey South East London England n n n n n n n n n n Although the town has benefited from such factors are likely to underpin price Pre 1900 1900-1939 1945-1972 1973-Present Staines completed units Spelthorneregeneration completed units to improveNew itshousehold commercial projections growth moving forward. Staines completed unitsSource: KnightSpelthorne Frank completed Research units New household projections FIGURE 5 Housing supply vs household projections 350 300 250 Final 200 150 100 50 0 2011/12 2012/13 2013/14 2014/15 2015/16 Spelthorne net additional dwellings Household projections Source: DCLG 3 FOCUS ON: STAINES-UPON-THAMES RESIDENTIAL RESEARCH Connectivity Hillingdon. Conversely, just over 10% to Shenfield via central London, cutting commute into Westminster, the City of journey times for millions of commuters. Heathrow Airport and the air freight sector London and Tower Hamlets. Those living in and around Staines- are two of the largest local employers in upon-Thames will be within a 15 to 20 Staines-upon-Thames, with over 6,000 However, the fundamentals are there for minute drive of three Crossrail stations employees of Heathrow Airport living in Staines-upon-Thames to establish itself at Iver, West Drayton and Hayes and the borough of Spelthorne. Other large as a commuter location for the capital. Harlington. Travel times to Bond Street employers include BP, Shepperton The fastest trains into London Waterloo will be reduced from 38 to less than 26 Studios, British Gas and Wood Group take 37 minutes, a commute on a par minutes from the three stations, with Kenny. As such, a considerable with Weybridge and faster than nearby Liverpool Street and Canary Wharf proportion of working residents in Staines Windsor, Chertsey, Virginia Water and less than 33 minutes and 40 minutes commute to neighbouring boroughs Egham, as shown in figure 7. Annual rail away respectively. as opposed to central London. This is season ticket prices are also lower than prices for similar tickets from stations in evidenced by commuting data from Further ahead, proposals for a second the surrounding area. the ONS which shows that, of the Crossrail line, running from South 18,001 residents commuting to London Meanwhile, from 2019, Crossrail West London to North East London boroughs, 54% work in Hounslow and (Elizabeth Line) will run from Reading (Crossrail 2), include a regional branch 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 37 MINS 34 MINS 41 MINS 60 MINS 47 MINS 46 MINS SEASON TICKET PRICE SEASON TICKET PRICE SEASON TICKET PRICE SEASON TICKET PRICE SEASON TICKET PRICE SEASON TICKET PRICE £3,180 £3,624 £3,520 £3,624 £3,600 £3,396 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 from Raynes Park to Shepperton, which rowing clubs. Meanwhile, the town hosts would provide Staines-upon-Thames a local market three times a week and is with a fourth Crossrail station within on the edge of the Colne Valley Regional a 20 minute drive of the town centre. Park, a popular location for walkers, However, it is worth noting that Crossrail runners and cyclists. 2 is not expected to be operational until The local education offering is also a at least 2030. draw. In the borough of Spelthorne there Crossrail will help to attract more are 33 schools of which three are rated businesses into the area, as will plans outstanding by Ofsted, two within for the Windsor Link Railway, a privately Staines-upon-Thames itself. Furthermore, funded £200 million projected that would an additional 23 schools within the provide a direct rail link from Staines- borough are considered good or very % forecast17 house price upon-Thames to Heathrow Airport, good.