We believe that the investment case for residential property investment in Woking is compelling.

Three specific factors underpin the investment case for the area and the specific property on our platform:

• Strong five year capital growth forecasts for the South-East of England, +26.4% and +23.4% in recent research from Savills and Knight Frank respectively, and reasons to expect outperformance relative to this
• Woking’s highly favourable location: within Surrey and one of the three ‘major wealth corridors’ running out of London that are benefiting from Londoners relocating to the regions, and just 24 minutes to London Waterloo by train
• A £150m regeneration project (potentially increasing to £250m according to recent press) centred around Woking’s town centre

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 emigration from the city and an increasing number of people choosing to commute from the surrounding areas instead. Lower house prices in these areas are a key motivation: the average price of a house in Surrey is £359k, 30% lower than the £465k average of Greater London (source: Land Registry).

This “ripple effect” is a major reason for the strong capital growth forecasts for South-East England: +26.4% and +23.4% for 2015-2019 in recent research from Savills and Knight Frank respectively (both research teams being well-regarded in the industry). South-East England scores as one of the top two regions nationally for growth in both reports.

London buyers have tended to move out along three ‘major wealth corridors’:

• South-West following the Thames into Surrey
• North via Hampstead into Hertfordshire
• South-East from Dulwich into Kent

Woking is set within the first of these corridors, in Surrey.

The number of commuters buying in these areas is growing. 26% of sales in the ‘major wealth corridors’ were to commuters in 2014, up from 21% the previous year. This growth in demand from commuter residents is a contributing force driving capital and rental values in these areas.

Furthermore, Woking is particularly well-connected to London, the train journey takes just 24 minutes and the property on our platform is walking distance to the station. With local GDP considered a key a driver of residential property returns, this aspect is key. The property stands to benefit not only from local GDP (boosted by the regeneration project discussed below), but also London’s GDP – the economic powerhouse of the UK.

Woking is undergoing a regeneration project totalling £150m, potentially increasing to £250m according to recent press.

The town’s revamped Jubilee Square was opened in 2012, delivered by a joint venture between a property company and the public sector (Surrey County Council and Woking Borough Council).

The same joint venture’s next project is the redevelopment of a larger section of Woking’s town centre:

• Three tall buildings, the largest of them 34 storeys high
• Retail space anchored by a Marks & Spencer outlet
• A covered piazza

The estimated local GDP impact is +£25m annually. Growth in local GDP, as noted above, is considered to have a positive impact on local residential property returns. Our property in Woking is walking distance to Jubilee Square.

Important Note
Property Partner does not provide advice and nothing in this article should be construed as investment or tax advice. The information which appears in this article is for general information purposes only and does not constitute specific advice. Neither does it constitute a solicitation, offer or recommendation to invest in, or dispose of, any investment that is mentioned in this article. If you are in any doubt as to the suitability of an investment, you should seek independent financial advice. The value of investments can go down as well as up. Past performance is not necessarily a guide to future performance. There are risks associated with an investment in any of the products featured on our website.