Slough Property Price Forecast As High As 35% by 2020
With the announcement of Crossrail and an increasing amount of professionals leaving London, Slough property prices could be set to see a huge increase. Recently named as one of the best UK towns to live and work in by Glassdoor, Slough has an average house price of around £390,000, nearly £300,000 less than the London average, with over 26,000 job vacancies and an average salary of £35,000.
It is also home to the largest trading estate in single ownership, housing a dynamic business district with more than 4,600 businesses including O2, Unilever and Ferrari. It also boasts close proximity to the capital and Heathrow Airport, making it ideal as a residential catchment area.
Thanks in part to the high-standard of commercial opportunities available, as well as the continuing progress of Crossrail making London commuting easier, Slough property prices are forecast for incredible growth.
The Crossrail Effect – Crossrail Property
Crossrail, also known as the Elizabeth Line, is a new railway connecting London and the South East. Offering improved journey times, space for up to 1,500 passengers and a 10% increase to London’s rail capacity when completed, it’s the kind of development that will push property prices up in the surrounding areas as commuters take advantage.
You only need to look at the figures to see that Crossrail is having a great effect on Slough property and the Commuter Belt in general. Throughout 2017, Slough house price growth hit a 13.8% increase while any house prices within a mile of a Crossrail station have risen by 66% since 2009.
When looking at how Slough will benefit particularly, the average house price growth in the Western section of the Crossrail line where Slough is based has risen by 59% from 2008 – 2016. This is compared to the South East which saw a relatively low 22% increase in the same period.
This equates to Slough forecasting a 35% increase in property price growth by 2020 according to a JLL report identifying Crossrail opportunities.
The JLL Report also shows that Slough has a long-term potential score of 8/10 which ranks it 4th out of 38 potential stations on the Crossrail line. The long-term potential score represents areas identified as the main beneficiaries of the Crossrail thanks to considerable land purchases, price growth and opportunistic potential.
The Slough station is just 11 stops away from central London’s Bond Street. It’s ideal for any commuters that are looking to get out of the central London property market and might be looking further afield for a home. Of course, this also means that investors looking for a smart purchase could jump in now and see enormous growth as the Crossrail Effect takes hold before the completion of the line in 2019.
Andrew Mason, Lloyds Bank Managing Director said: “With a year to go before the Elizabeth Line becomes operational, homes close to Crossrail stations are already reaping the benefits with average house prices outgrowing the surrounding areas”.
On top of these initial rises, there’s also the potential for a second surge. Many home-buyers and investors tend to wait until a large infrastructural development is complete before purchasing. Increased demand from tenants is also likely, as those who are waiting for the line to start running make a decision. With both of these factors in play, 2019 could see a huge spike in Slough property prices and yields.
The Brexit Bump
Unfortunately, there’s no talking about property prices without mentioning Brexit. Uncertainty surrounding Brexit has meant that Crossrail-related property has experienced a 2% drop since May 2017, after making huge strides in the last decade. Thankfully for buyers and investors, this fall was expected across the industry and experts forecast a return to ‘economic stability’ will mean a return to positive growth.
Brexit is still one of the biggest risks to the pace of recovery for house prices but research by the Royal Institution of Chartered Surveyor’s Residential Market Survey has shown increasing demand from new buyers and house price comparison website reallymoving.com predicts prices are set for a boost of 1.2% from June to September 2019.