With the £14.8bn Crossrail project set to increase property prices by over 50% when it arrives in 2019, Slough is an increasingly attractive location for investors who see real potential in the commuter belt town.
Statistics indicate that homes in the same postcode as a Crossrail station such as Slough will see a 60% increase in value, with prices expected to continue rising by up to £160,000 over the next four years.
One Investment’s luxury development in Slough has already shown evidence of this popularity, further proof of the area’s position as a prime commuter belt town.
The Sapphire Court development, which recently sold out, sits within a fantastic central location, perfect for busy commuters who work in the capital.
By 2018, Crossrail will connect Slough directly to the capital. And by 2020, the Western Rail Access to Heathrow will connect the airport to Slough in a record six minutes.
Slough’s rental sector is increasingly becoming more and more attractive to property investors looking for lucrative opportunities outside the capital.
A report by CBRE about regional rental markets, indicates that while London has seen the strongest rental growth across the country, rents nationally have broadly tracked the rate of inflation. Rising populations and improving economic positions in regions outside the capital are enhancing rental growth prospects.
It analysed prospects for the regional centres in the largest residential rental markets. By examining future population and employment growth and highlighting some key trends, they have pinpointed the potential best performers.
CBRE’s analysis shows areas like Slough, Leeds and Reading outperforming the rest, driven by strong growth in working age population, employment in financial and business services, household disposable income and GDP.
CBRE identifies Slough as a key rental hotspot and a well-established residential market outside London. It earmarked the commuter town as a prime target for rental stock investors.
Almost a quarter of homes in Slough are owned by private landlords with an average town centre rental price of £795 pcm and a gross yield of 5.9%. As Londoners struggle to get on the housing ladder, demand continues to spill out into commuter towns like Slough.
High projected population growth here will be coupled with high household disposable income growth. Above average house price increases will improve total returns for residential investors.
For a stronger return on investment, investors should continue to target areas outside the capital like Slough, with its growing population, restricted housing supply and its position on the cusp of employment absorption.