We believe that the investment case for residential property investment in the London Borough of Sutton is compelling.

Three factors underpin the investment case for the area:

• Sutton’s location at the border between London & the South-East. Knight Frank forecasts that these two regions will be the two fastest-growing in the country over the next 5 years, and Sutton is ideally-placed to benefit from this growth in both areas
• Sutton’s very good transport connections and excellent schools. These factors make it an especially attractive destination for those leaving central London, where housing capacity growth lags population growth
• A £50m redevelopment of Sutton’s High Street that is forecast to bring nearly 500 new jobs to the area

The well-regarded research team at Knight Frank forecast capital growth, over the next five years, of +25.8% for London and +23.4% for the South-East of England. These two regions are forecast to be the two fastest-growing in the country. Savills have the South-East as the region they expect to be highest-performing, over the next 5 years, at +26.4%.

Sutton is located on the border between the two regions. Part of the borough actually used to be classified as Surrey rather than London. As such, we view it as a good hedge between the areas.

London’s population is growing at 40,000 households a year, yet its housing stock has only been growing at 25,000 a year over the last two years (and no more than that over the last 30 years). This data comes from the Boris Johnson’s draft London Housing Strategy for 2014.

The implication is that London cannot house its growing population – which is resulting in rising property prices and emigration from the city and into the surrounding areas instead.

Sutton is particularly well-placed to take advantage of emigration from central London. Its transport connections into central London are good and its schooling is exceptional, making it attractive to parents. It is also home to a major hospital, a major employer whose staff have a strong propensity to rent.

Sutton is about 30 minutes by train from London stations including Victoria. It is even closer to Clapham Junction, Croydon, and Wimbledon. Its airport connections are good – Gatwick Airport is less than 30 minutes by car and Heathrow Airport is less than an hour away. It has good access to Europe via St Pancras International, a 45-minute direct train ride from Sutton. Sutton itself has an extensive bus and tramline network – the latter a rarity in England.

Sutton’s state-funded schooling is by many measures the best in the London area. Pupils are more likely to achieve high GCSE grades than in any other London borough and Sutton is one of only 11 regions in the whole country with the desirable option of state-funded ‘grammar schools’. Local grammar schools include high-achieving Sutton Grammar School and Wilson’s.

The Royal Marsden Hospital is within two miles and is a major local employer whose staff have a strong propensity to rent – driving demand for rental stock and supporting values.

In February 2014, Boris Johnson approved a £50 million regeneration project to revive Sutton’s High Street.

The project, which is due to finish in early 2016, will deliver a very large (12,000 square meter) supermarket and nearly 500 new jobs to the area. It was originally approved by Sutton Council but because of its ambitious scope, required backing from the Mayor of London.

The redevelopment will be built around a new public square which will include seating areas, public art and water features. A total of 186 homes are being built as part of the scheme, together with nine new commercial units.

All in all, the redevelopment should make Sutton an even more attractive location for those moving out of London.