Warning Southampton must move beyond student flats to rival biggest competitors

Southampton needs a broader mix of development if it is to challenge the UK’s biggest regional cities, property experts have said.

The city has been identified by Savills as one of the country’s ‘Next Six’ cities, alongside Reading, Newcastle, Cardiff, Sheffield and Liverpool.

The group sits behind the established ‘Big Six’ outside London of Manchester, Leeds, Bristol, Glasgow, Edinburgh and Birmingham.

Research by Savills showed Southampton’s development mix over the past 12 years was heavily weighted towards student accommodation.

Purpose-built student accommodation accounted for 44 per cent of floorspace delivered, compared with a ‘Next Six’ average of 31 per cent.

Build-to-rent schemes accounted for nine per cent, against an average of 22 per cent, while private housing represented 24 per cent, affordable housing four per cent, hotels ten per cent and retail nine per cent.

The research recorded no new office development in Southampton.

Gavin Hall, planning director and head of Savills’ Southampton office, said developments including the Harbour Hotel at Ocean Village, Centenary Quay in Woolston and Carnival’s headquarters had contributed to the city’s growth.

He said: “However, what has really pushed Southampton up into the ‘Next Six’ is the quantum of purpose-built student accommodation (PBSA) that has emerged.

“The trend for this is slowing down and the lop-sided nature of our delivery in Southampton towards this will need to shift in order to retain our position, continue to grow and to challenge the top six.”

Mr Hall said it was a challenging time for development across the UK but opportunities were emerging, including at the former Toys R Us site.

He added: “This approach needs to continue to forge ahead with new development opportunities across a mix of sectors so that Southampton can remain within the top 12 and challenge the top six.”

Lucy Richmond, founder of South Coast CPS, said the statistic showing zero office development was particularly striking.

She said: “What concerns me is that this doesn’t necessarily reflect a lack of demand.”

Ms Richmond said businesses were seeking modern offices with stronger environmental credentials and specifications but Southampton had “very limited new supply” coming forward.

She added: “There is clearly a viability challenge. Construction costs, funding, rents and investor returns all have to stack up.

“But if businesses are looking for better-quality space and that space doesn’t exist, there is an opportunity we should be trying to unlock rather than allowing that demand to go elsewhere.”

Ms Richmond said Southampton needed to demonstrate the occupier demand and investment case to give developers and investors the confidence to build in the city.

Council leader Sarah Bogle said Southampton had established “solid foundations for growth” through its Renaissance Vision and emerging local plan.

She acknowledged viability challenges for office development and housebuilding, but said there were multiple examples of office space investment coming through refurbishment and repurposing.

Sarah Bogle, leader of Southampton City Council, (Image: Supplied)

Cllr Bogle said: “Southampton is seeing encouraging momentum in its development market, with major projects helping to unlock opportunities for growth and investment across the city.”

She highlighted the Bargate Quarter development and the council’s work with the private sector on the former Toys R Us site.

Get the latest ALERTS for BREAKING NEWS in the SOUTH on your phone by downloading the V2 RADIO APP today! 

V2VOUCHERS.CO.UK is offering half-price deals on a wide range of experiences across the South, from meals out at local restaurants to tickets for some of the region’s biggest events.