St Albans is a good prospect for economic growth over the next 12 months if measures are taken to sustain it, according to new research. 

The ‘UK Vitality Index’ assesses the UK’s largest towns and cities outside London to provide a health check.

The results published by commercial property consultancy Lambert Smith Hampton (LSH) are based on the analysis of 20 datasets.

St Albans was placed sixth in this year’s index. It ranked particularly highly when measured in terms of its affluence, which looks at a combination of average house prices, average weekly pay and socio-economic demographic data, coming joint first alongside Guildford, Reigate, Maidenhead and Wokingham.

Overall, the city dropped very slightly compared to its fourth place ranking in last year’s report. This is as a result of deterioration in environmental variables, with a decline in the proportion of household waste recycled and an increase in CO² emissions per capita.

Nigel Palmer, at LSH, said: "As a prosperous location, St Albans is a popular location for businesses as demonstrated by the increasing demand for commercial property we are seeing in and around the city.

"In addition, the city benefits from excellent transport links with the M1 four miles to the west and the M25 three miles to the south. The mainline railway station also provides a regular service to London St Pancras, making it an ideal location not just for businesses looking for close proximity to London, but also commuters.

"Whilst the short term prospects for St Albans are extremely good, more needs to be done to ensure that long term economic growth can be sustained. Without more affordable housing, some businesses may struggle to recruit. In addition, a lack of new commercial stock coupled with a limited commercial land supply means that St Albans will face challenges in accommodating the many businesses that wish to take advantage of the numerous benefits that it has to offer. We can also expect this to drive increases in both rental and capital values."