The Southampton City Council Capital Strategy 2018-2022 identifies a housing requirement for the city of 16,300 by 2026 as a priority issue. This is putting increasing pressure on the existing undersupply of housing that reached 940 homes across the region last year.
Increasingly recognised as a city of opportunity, Southampton’s economy is thriving and outpacing the rest of the UK, excelling in key industries including professional & financial services and marine & environmental technologies. Renowned as a South Coast financial centre of excellence, home to internationally recognised educational and research facilities and the cruise capital of Northern Europe with its world-class turnaround port – Southampton’s thriving local economy is exacerbating the existing housing shortfall. Nevertheless, the ambitious plans for the city forecast up to 24,000 new jobs over the next 20 years and Southampton’s ambition is matched by a clear vision, plan and ability to deliver.
The Council’s determined city centre Master Plan, inclusive of over £3 billion investment in regeneration is playing a pivotal role in the city’s transformation with more major schemes than any time since the post-war years are underway. Very Important Projects’ (VIPs) as set out in the city Master Plan are now underway and under development – including WestQuay South, the new leisure and dining destination, the Station Quarter Redevelopment creating both office and retail space as well as Ocean Village, the £65 million redevelopment of the harbour including the £25 million Southampton Harbour Hotel and Spa shaped like a ship to echo the city’s links with the ocean liner business, a symbol of the prospects for the buoyant city centre.
“This is a city where you can do business. We have the workforce, we have the facilities, the cultural background and accommodation. You can make your business grow here.”
– Dawn Baxendale, Southampton City Council’s Chief Executive
Testament to the council’s commitment to the continued expansion of the region’s economy there also remain plans for a major expansion of Southampton Docks. By 2030, the commercial port is expected to increase exports from 2.7m containers per year to 4.2m. To the west of the existing city centre, plans are also being put together to create a whole new neighbourhood, the Central Business District that will provide for integrated residential, office and leisure uses stretching from the Central Station to the waterfront. This ongoing regeneration will bring further opportunity and investment, boosting the professional population and demand for superior accommodation further.
It’s a time of great change for the South Coast property market. Southampton are reviewing their local plans which will set the blueprint for how our region will be developed in the coming years. Achieving the right balance of housing, employment land and creating spaces that prioritise the health, fitness and wellness of the people that use them is imperative.”
– Emma Eaglestone, Lead Director JLL
Apartments in the vibrant city centre witnessed a 14% increase in apartment prices over the last 12 months according to Rightmove – an upward trajectory that is continuing as confirmed by Hometrack’s Cities House Price Index that shows 2.3% growth across Southampton in the last 3 months alone. A study by Private Finance also reveals that Southampton saw the biggest rise in yields of any UK city since May 2017, seeing it rise to the from 11th to 4th position of UK buy-to-let hotspots for 2018 – the highest of any Southern city. The thriving economy, unmet housing requirement and strategic investment plan mean the city presents investors with all the fundamentals required to capitalise on maximum returns.