Why invest in a new 2-bed apartment in Slough?
2-bed apartments are a widely popular property investment asset because of the flexibility they offer in meeting demand. In the modern market, especially after lockdown, tenants are always looking for more space – especially the young professional demographic that make up the majority of the rental market.
Slough is an emerging market that is buoyed by the incredible commercial opportunities it can offer professionals working in the town, plus the transport links it can offer those that commute to a role in London. Providing affordability and opportunity, Slough is also driving the regeneration that creates fantastic new amenities to meet tenant demand – attracting new tenants and helping retain those already in the town.
A quality product attracts a quality tenant and 2-bed apartments in Slough are a staple of this ‘quality’ concept. Ideally suited to delivering long-term, consistent yields, a 2-bed apartment in an emerging market such as Slough can offer affordability and huge potential, especially if it has surrounding amenities for residents.
Slough, London Commuter-Belt
Invest at Crossrail’s Premier Development
- 100m from Slough Station – serving 30,900 London commuters
- 14.8% property price increase expected by 2024
- 11.5% rental price increase expected by 2024
- Wider £3 billion regeneration plan
- Anticipated completion date Q4 2020
Slough Tenant Demand?
It’s expected that by 2039, renters will outnumber homeowners as younger buyers become part of ‘Generation Rent’. Prioritising flexibility, space and nearby opportunities, this new wave of tenants want to be as close to the action as possible. They don’t mind paying more either – according to Homes and Property, 2-bedroom apartments are more likely to attract tenants despite rents typically being higher.
Slough meets all of these demands. The world-class transport links it can provide means London is never too far away, while an affordable local market undergoing huge regeneration projects means that prime town-centre property has the potential to deliver incredible returns.
This fits with the two most common tenant demographics that choose 2-bed apartments – professional sharers and couples. Slough is a ‘professional paradise’ and a 2-bed apartment at the heart of the town means residents can opt to work for one of many businesses nearby or commute to London. This isn’t short-term either, 67% of professional sharers expect to still be renting in three years time, demonstrating the appetite for rental opportunities and potential for higher rental yields.
Property Performance in Slough?
Research by Zoopla shows that the optimal property for maximising rental yields is a 2-bedroom apartment. Delivering an average rental yield of 5.40%, 2-bedroom apartments beat all competition, leading the next asset type by around 0.50% and racing ahead of it’s ‘house’ equivalent, which earn an average of 4.80%.
This highlights that the ideal Buy-to-Let property is a 2-bedroom apartment in a key investment location. By delivering flexibility, space and accessibility, Slough is one of these prime locations. With property price growth of around 14% over the last two years and average rental yields hitting around 5.9%, a 2-bedroom apartment in Slough is ideally placed to take advantage of common tenant demographics and what they’re looking for.