Rental Yields in Bracknell

Discover the rental yields in Bracknell for 2021 and how they’re expected to change over the next few years.

Rental Yields in Bracknell

 

Achieving a high rental yield is largely dependent on your location. It’s vital to find an area that is filled with potential. As an investor, you should be looking for locations that you think will excite tenants, offering them something that they wouldn’t be able to find elsewhere.

Emerging locations tend to have the added benefit of affordability, which can be a critical signpost for finding higher yields. In our research, we found Bracknell to be one of these emerging locations, filled with overwhelming potential. As a major player in the UK tech industry, it’s home to nearly 500,000 jobs that consistently attract young, educated and ambitious professionals looking for somewhere quality to live.

Finally, Bracknell residents can reach London in under 50 minutes by train and yet property prices are nearly 70% more expensive in the capital (£383,788 vs £653,965). As you’d imagine, this makes Bracknell an appealing prospect for both domestic and commuting workers, cementing its position in the ‘outer London Commuter Belt’ that is rapidly becoming a reality as working cultures shift.

Average Rental Yields in Bracknell

 

The average rental yield for Bracknell sits at around 3.98%, outperforming the national average as well as London, which averages around 3.04%.

Despite seeing price rises of 249% since 1999, Bracknell remains relatively affordable within the wider South East market, which no doubt has an impact on its above-average rental yields.

As a commuter destination it continues to represent a more valuable proposition than its neighbours while also forecasting incredible growth, both strong indicators of all-important tenant demand (as well as rising capital appreciation, which can be another major goal for investors).

During 2018, Bracknell had some of the highest price rises in the UK at 19%. Since then, the South East has been predicted to outpace the national average for growth – with an expectation it will grow around 17.5% by 2025. This will put Bracknell at the heart of the fastest-growing region in the UK, driven by new development projects such as Princess Square and The Lexicon.

Best Property Type in Bracknell

 

The best property type in Bracknell according to our research appears to be two-bedroom apartments.

Research by Upad has shown that the number of bedrooms available definitely has an effect on the best property for rental yields, as does the property type itself.

By taking into account the average asking price of various flat sizes as well as looking at average asking rents, we can identify the best properties for rental yields. With this in mind, we’ve found that the optimal property for maximising rental yields is a two-bedroom apartment, closely followed by a one-bedroom apartment and then three-bedroom apartment.

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House Prices in Bracknell vs Rental Yields

 

Property type Avg. Prices Rent (m) Rent (p.a) Rental yield
1 beds £211,237.00 £554.00 £6,648.00 3.15%
2 beds £306,137.00 £1,200.00 £14,400.00 4.70%
3 beds £419,342.00 £1,295.00 £15,540.00 3.71%

 

Flat Prices in Bracknell vs Rental Yields

 

Property type Avg. Prices Rent (m) Rent (p.a) Rental yield
1 beds £205,508.00 £815.00 £9,780.00 4.76%
2 beds £275,540.00 £1,103.00 £13,236.00 4.80%
3 beds £442,273.00 £1,148.00 £13,776.00 3.11%

 

What Will Affect Your Rental Yield? 

 

Several elements can affect your rental yield – before, during and after the investment.

Supply and demand arguably plays the biggest part, alongside the location itself. With the right preparation, investors can quickly identify markets that are forecasting consistent demand and from that, determine whether yields could rise. The best way to do this? Research future development pipelines – residential, commercial and public – to see whether demand can be met.

Currently, in many cases across UK cities, residential supply is low although the amenities that residents want are still being created. This is ideal for investors as low supply, high demand almost always leads to rising prices and asking rents.

Similarly, the standard of career opportunities available can positively impact demand from workers in the area and contribute to graduate retention, an often forgotten demographic that should be watched carefully by investors – today’s graduates are tomorrow’s young professionals.

Finally, studies by Nationwide have shown that proximity to transport links (in this case, train stations) can have a huge impact on yields. Properties within 500m of a train station can typically command a 9.6% premium while properties 1,250m away will only see a 1.9% difference.

How Does Growth Affect Rental Yield? 

 

Rental yields are particularly affected by redevelopment and regeneration – something that Bracknell is experiencing in droves. As new developments regularly appear within the £770 million ‘Bracknell Vision’ project, research suggests that these amenities are having a direct impact on population, which in turn drives demand and thus, rental yields.

This is why Bracknell can be considered such an exciting ’emerging’ location. Rental demand is at an all-time high for the town, population growth is forecast to be one of the highest in the country and as more amenity-led developments are completed, the town is attracting more ambitious professionals that are willing to pay extra for premium features. This is encouraging a competitive market that doesn’t have the supply to meet demand, which for investors, means an opportunity to utilise higher asking rents and reap the benefits.

What Rental Yields Can Bracknell Achieve in the Future?

 

So what rental yields can Bracknell achieve in the future? As the ‘Bracknell Vision’ plan continues to fund new and exciting developments until 2032, the town itself continues to utilise flexible, mixed-use spaces to meet rising demand – Bracknell is predicted to experience population growth of 15% by 2039, one of the highest in the country.

Building on Bracknell’s established connectivity is vital and the advent of Crossrail – a new line for the London Commuter Belt that will directly connect key locations such as Bracknell with the capital – will improve the quality of the infrastructure around the town and further boost the effects that Nationwide found in their studies.

All in all, this will create even more demand, creating an even more competitive market and pushing rental prices to higher levels than ever before. JLL predict that rental yield growth will equal around 8% over the next four years across the South East, driven by regeneration and the tenant demand we previously mentioned.