Spotlight:

The Future of the M27 Corridor

The Future of the M27 Corridor
The Future of the M27 Corridor

9 February 2017, by Savills Research

Delivering homes and workplaces in and around Portsmouth and Southampton

■ The economy of the M27 corridor and surrounds is growing faster than the national average, putting further strain on an already undersupplied commercial market, and exacerbating the housing shortfall.

■ Demand for housing pushed up house prices between 8.0% and 10.7% over the year to September across the M27 corridor, above the national average of 7.1%. However, they still remain more affordable than neighbouring markets Winchester, Chichester and East Hampshire.

 

■ The M27 corridor needs at least 4,000 additional homes per year, but the current delivery rate is leaving the area short of need by 940 homes a year. Office conversions have provided 10% of all new homes in the last year.

■ There is very limited office supply available and no new developments under construction. Failure to meet demand may inhibit growth prospects of local businesses and make it harder to attract new companies. Lack of commercial development has resulted in an increase in refurbishments.

■ With residential sales values outperforming commercial values, new development is dominated by housing schemes. There is, however, potential to bring forward more commercial space through residential-led mixed use schemes.

Articles from Spotlight: The Future of the M27 Corridor – 2017

Strong growth, new challenges

Strong economic growth in the markets around the M27 is increasing the pressure for more homes and workplaces

Residential leading the way

09 February 2017

Residential leading the way

Residential development is dominating property construction in the M27 corridor with limited new commercial space being delivered

Opportunities for development

Development is needed for homes and workplaces along the M27 corridor. But key hotspots are emerging with mixed-use opportunities

Outlook and recommendations

09 February 2017

Outlook and recommendations

The potential for growth in Portsmouth, Southampton and the wider M27 corridor

 
 

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Key contacts

Clare Bailey

Clare Bailey

Associate Director
Commercial Research

Savills Margaret Street

+44 (0) 20 7409 8863

 

Mike Barnes

Mike Barnes

Research Analyst
Commercial Research

Savills Margaret Street

+44(0) 203 107 5459

 

Lucy Greenwood

Lucy Greenwood

Associate
Residential Research and Consultancy

Savills Margaret Street

+44 (0) 20 7016 3882