12/11/2009
Winchester is one of those places where demand follows supply. A cathedral city and former capital it may be, but Winchester is smaller than its status and image suggests. The property market is constrained by the size of the town, its heritage and natural features; hence its positive qualities are limiting upon supply. Simon Ward, Head of Research at property consultants Vail Williams LLP, explains.
Winchester is a premier place to live; the historic built environment and easy access to rural surroundings and the coast are key assets. Transport links by road (M3 and A34) and rail (with regular services to London) are also strong. These are all spurs for demand in the property market in the context of a tightly defined development area.
Many commuters travel to London so Winchester is a transport node as well as a destination. This has led to debate about whether and how Winchester’s property stock should be expanded to accommodate potential demand. Contrary to other High Streets, the choice of available retail units in Winchester is extremely limited. There is clearly a balance to be struck between quality and quantity and the opening of a new Waitrose on 1st October, as well as ongoing investment by Tesco, will help to test the supermarket dimension of retailing.
Around the town there is about 9,400 sq m of office space available; this has increased significantly (up over 60%) in the last year but the vast majority comprises small units or is second-hand with a limited supply of modern space. The council’s Employment Land Review has highlighted an opportunity to enhance the local economy through the provision of new space for “higher value” jobs and agents perceive that demand will follow supply. However, when it comes to “delivery” of new space, much depends on commercial property yields in the wider investment market, as well as steady revival of the economy at large to swell demand and support rental levels. Whether commuters to London could be persuaded to work locally remains to be seen but Winchester certainly has attractive qualities for those that can find a suitable office.
The industrial estates of Winchester, mainly at Winnall and Bar End, are well situated for motorway access and include a range of standard industrial units, “trade counters”, car showrooms and small warehouses. With about 11,800 sq m available, supply is relatively tight and about 11% down compared to last year. Helpfully for local businesses seeking small units on flexible terms, Basepoint and Winchester City Council recently announced the construction and refurbishment of 2,300 sq m of managed workspace at Winnall Valley Road. This will enhance the choice of small offices and workshops, although the supply of larger, strategic sites remains constrained.
