London and Slough Price Comparison
There’s no doubt that London is recognised as having a high-cost of living when compared to the rest of the UK, and in this London and Slough price comparison, we discover how looking outside the capital can present a very attractive alternative.
As we edge closer to the completion of the Elizabeth Line (otherwise known as Crossrail), it might surprise you how affordable the cost of living can be several stations away from the centre of the capital.
Slough, situated roughly 18 minutes away from the Capital on the upcoming rail line, offers a much lower cost of living and easy access to key points in London. This makes it ideal for commuters and families that are looking for a more affordable base location. With Slough seeing a number of upcoming commercial developments, a dedicated station on the Crossrail line and a much lower cost of living, the city is forecasting an incredible rise in tenant demand as workers within Slough and London commuters flock to take advantage.
Obviously, this is great news for potential tenants and investors, particularly those that are searching for up-and-coming areas. For workers looking to access higher salaried jobs in the Capital but wishing to maintain an affordable lifestyle further afield, Slough represents a great opportunity.
For landlords, properties along the Crossrail routes are always rising in value and Slough is no different. The key information in our London and Slough price comparison below showcases why Slough not only represents a good investment but could become a hotbed of reliable and financially secure tenants.
From the average rent to the general consumer costs you’ll experience, what follows below is a brief insight into several key metrics including the average salary, average property price, average rent and more between London and Slough.
How expensive is London property compared to Slough?
London property is typically known for its pricetag. While the city has seen incredible growth over the last 20 years, it’s reached a point where many buyers and tenants are being priced out of the market. At the same time, with the change in working culture now meaning many more people are working from home, we’re increasingly seeing tenants prioritise space – something that they may struggle to find in London.
Subsequently, we’re seeing more and more reports from estate agents in the South announcing that Londoners are enquiring after bigger, more affordable properties outside of the capital. Unsurprisingly, many are turning towards commuter towns.
Upcoming areas such as Slough and Bracknell, amongst many others, are undergoing significant regeneration and increasing in popularity. Developers are building new homes and apartments designed to match the quality and style of an upmarket London residence, but for a more affordable price tag. Pitched against their London equivalents, in terms of size and price, it’s easy to see why many a Londoner might now seek out a home further afield, particularly as a renter.
Here you can see that – although by central London standards it’s still relatively ‘affordable’ – a renter more conscious about space rather than location could swap a smaller one-bedroom apartment for a two-bedroom apartment nearly 300 sq.ft bigger (with a balcony and parking in a private gated development such as The Metalworks) for the same price, just 18 minutes away from central London.
So how much is the average salary in London and Slough?
Average salary in London – £34,878
Average salary in Slough – £29,228
According to Payscale, Slough currently has an average salary of £29,228, putting it above the median average of the UK. Unsurprisingly, London has the highest average in the country, off-setting the above average living costs.
Cost of living comparison between London and Slough
You would need around £3,449 in Slough to maintain the same standard of life you’d have with £4,500 in London. This figure can then be broken down into several key areas:
Consumer prices in Slough are 8.61% lower than in London
Restaurant prices in Slough are 1.55% lower than in London
Food Shopping prices in Slough are 3.03% lower than in London.
Local Purchasing Power in Slough is 21.55% higher than in London.
What are the average property yields along the Crossrail?
One of the major drivers of demand in Slough is the Crossrail – an addition to the rail network in the South East that will provide easy access across the Commuter Belt into London. For investors, understanding the effect that Crossrail has had on many locations in the South East is a great way of demonstrating the potential strength of an investment in Slough.
Paddington – 2.94%
Average Purchase Price in Paddington – £1,372,091
Average Rent (PCM) in Paddington – £3,360
Average Yield in Paddington – 2.94%
Bond Street – 2.57%
Average Purchase Price in Bond Street – £3,645,243
Average Rent (PCM) in Bond Street – £7,806
Average Yield in Bond Street – 2.57%
Liverpool Street – 2.54%
Average Purchase Price in Liverpool Street – £1,075,498
Average Rent (PCM) in Liverpool Street – £2,282
Average Yield in Liverpool Street – 2.54%
Slough – 4.77%
Average Purchase Price in Slough – £414,950
Average Rent (PCM) in Slough – £1,650
Average Yield in Slough – 4.77%
Forecast changes in the average property price between 2015 – 2020
Property price change in Slough – 35%
Property price change in Bond Street – 8%
Property price change in Paddington – 16%
As you can see, Slough is forecasting a much higher change in property prices than two prominent Crossrail stations in Central London. This is symptomatic of the wider property market – Slough prices are forecast to increase by 35% between 2015 and 2020 whereas London is only forecasting a 7% growth during the same period.
Commute comparison between Slough and London (via Crossrail)
Slough to Paddington – 18 minutes (8 minutes saved via Crossrail)
Slough to Heathrow – 23 minutes (13 minutes saved via Crossrail)
Slough to Bond Street – 32 minutes (24 minutes saved via Crossrail)
Slough to Liverpool Street Station – 38 minutes (23 minutes via Crossrail)
Slough to Canary Wharf – 46 minutes (23 minutes saved via Crossrail)