Why Invest in Slough Buy-to-Let Property in 2019?
During 2019, Slough remains a property investment hotspot thanks to increased affordability, improved transport links and a £1 billion regeneration project that is starting to take shape.
A commercial powerhouse that sits at the heart of a hugely successful economy, Slough remains much more affordable than London and saw prices rise to over 13% last year.
Despite Brexit causing a general ‘wait-and-see’ approach in the property market, JLL is still forecasting a 35% increase in Slough property location prices by 2020, ranking the commuter town as having the 4th highest ‘long-term’ potential for the wider commuter belt.
So, why invest in Slough Buy-to-Let property in 2019? From a bustling commercial sector to unparalleled connectivity, we look at why Buy-to-Let investors are identifying Slough as a Buy-to-Let hotspot, examining the unique opportunities available from this Commuter Town on the rise.
The benefits of buy-to-let in Slough
With the largest concentration of global businesses outside of London, a £9 billion economy and around 87,000 jobs, one of the biggest signposts for investors is the incredible demand driven by Slough’s professional workforce. Whether they’re one of 48,000 commuting into the city or a domestic worker, there is a huge opportunity for BTL investors to take advantage of a workforce that wants affordable, quality living near their place of work.
The heart of Slough’s commercial sector and the largest trading estate under single ownership in Europe, Slough Trading Estate demonstrates the commercial pull the town has, attracting global brands such as O2, Virgin Media and Yell. Home to a working population of around 20,000 people, the bustling estate is drawing a talented professional workforce, whether they’re based in Slough or commuting from the capital. Consisting of 486 acres and 7,500,000 sq ft of accommodation, Slough Trading Estate is just one example of how the commuter town is looking to position itself as an investment hotspot.
Slough’s popularity as a commuter town means connectivity is incredibly important, with around 48,000 professionals currently commuting from Slough to places such as Heathrow Airport and London. While links with these high-profile destinations are already excellent, they’ll soon be improved with the completion of Crossrail.
The £14.8 billion Crossrail route is a high-frequency, high-capacity railway that will create a ‘door-to-door’ connection with key locations across the South East when it officially goes live in 2019. The officially named ‘Elizabeth Line’ will run through Slough, ensuring the town remains an attractive proposition for investors, commuters and tenants alike, speeding up journey times in and out of the capital while ensuring another 1.5 million people will be within 45 minutes of central London.
For BTL investors, these more direct links are helping drive property prices – demand for property near proposed Crossrail stations has already had a significant impact on prices. According to Rightmove, areas such as Woolwich have seen property prices increase by 85% since 2011, while Abbey Wood increased by 146% in the same period.
According to the GVA Crossrail Property Impact Regeneration study, “the core influence of Crossrail in value terms appears to be that it reinforces the strongest markets”.
‘The Crossrail Effect’ is real and on average, property prices within a mile of a station have increased by 66% since Crossrail was announced. This is true for Slough, which enjoys a prime location along the Elizabeth Line. By 2021, GVA forecast that there will be an average uplift of 19% in property value while JLL believes that Slough specifically will outperform the average, rising by 35% over the next two years. Either way, experts foresee positive trends for the commuter belt post-Brexit as the region begins to stabilise.
Slough is also blessed with transport links to major motorways including the M40, M25 and M4 alongside international links through Heathrow Airport. Heathrow sits just 15 minutes away while Gatwick and Luton can be reached in under an hour. Western Rail Access, expected to arrive by 2021, will provide unprecedented access to Heathrow in under 10 minutes and connect Slough with the 114,000 new jobs generated by the development of a third runway.
One of the biggest indicators for investors is the amount of investment going into the surrounding area. Slough is currently undergoing a huge regeneration programme that is due to complete in 2022, delivering stunning new public spaces and leisure facilities. The Slough Urban Renewal (SUR) project is injecting £1 billion into the town, pioneering game-changing developments and creating iconic buildings amongst a thriving Slough landscape.
From the development of the £22 million learning and cultural centre The Curve to the ‘Heart of Slough’ regeneration programme, Slough is delivering projects that are generating demand and building the ideal place to live, work and play, a huge benefit for investors.
As part of the UK’s ‘tech corridor’, Slough is benefitting from building on its digital infrastructure, developing and integrating smart applications into its commercial sector where possible. Slough has been listed as the 3rd most promising region in Europe for Infrastructure in FDi Intelligence’s ‘European Cities & Regions of the Future’ report, demonstrating the recognition the town is gathering on a global scale.
Robust Slough Rental Yields
As London continues to stagnate, it’s important for Buy-to-Let investors to consider where the tenant demand will settle. With working young professionals and young families leaving the capital for more affordable markets, established commuter markets are set to benefit. It stands to reason that Slough will be recognised as an alternative to London, maintaining direct access to the capital while experiencing increased demand. Already we can see that 46% of the homes in Slough are let to tenants that have moved from the capital seeking better prices.
For Buy-to-Let landlords, this has resulted in increased capital growth and potential rental yields. The average property price in Slough has increased by 13% and yet London remains 65% more expensive. Rent in Slough has also increased, providing yields of anywhere between 5% and 7% since 2016.
This ‘London Exodus’ doesn’t seem to be slowing down any time soon – rents are rising and already the capital is seeing double the number of people in their early 30’s leaving for less expensive markets. For investors that want to identify an up-and-coming market, all of these are important indicators that put Slough firmly in the spotlight as a cheaper, progressive alternative to the capital.
As the wider commuter belt continues to perform, productivity will be a huge beacon for both investors and potential tenants – a trait that Slough has more than enough of entering into 2019.
BTL investments in Slough
As a leading property developer in the UK, we understand the potential that an investment opportunity in an up-and-coming area can have. We have several investment opportunities in Slough, designed to cater to several different demographics and investment strategies.
Prices From: £399,950
Initial Deposits From 5%: £19,997
Steel House is a first for Slough. A stunning development at the heart of a bustling commercial hotspot, ideally equipped to deal with the demands of high-powered city living. Steel House is an executive community designed for the working professional, attracting residents that want to live and thrive in a contemporary setting, surrounded by other ambitious individuals.
Nestled on the doorstep of Crossrail, Steel House epitomises connectivity, allowing residents to reach London or Heathrow Airport in under 20 minutes. This prime location in a key commuter destination means Steel House is tailor-made for the professional commuter.
Steel House is a vital part of Slough’s continued regeneration and a beautiful addition to a landscape experiencing unprecedented growth. It represents a new era for London investors, an exclusive private community that inspires peer-to-peer professional connectivity whilst encouraging ambition and creativity. It’s time to join the club.
Prices From £239,950
Estimated Completion Date: Q4 2019
SevenCapital is proud to present New Eton House, a landmark residential development for Slough. Located in the heart of the town’s thriving commercial centre on the Bath Road, you’ll find 58 stunning apartments, light, spacious and designed as a haven for a new era of residents.
A refined and sophisticated addition to Slough’s address book, New Eton House is a new opportunity for a new breed with research showing a clear gap in the market for high-end luxury boutique apartments. As demand increases and supply remains extremely limited, New Eton House is perfectly placed to meet the needs of the executive resident.
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