Why Invest In Property in Slough 2022?

As regional markets continue to outperform the London market, the South East – and Slough – are thriving. Buoyed by new regeneration and demand from the capital, property in Slough is forecasting higher growth in 2022, based on revised predictions from the experts. If you’re looking for long-term potential in a Buy-to-Let investment, this is why you should invest in property in Slough in 2022.

Why Choose Property in Slough?

Slough tower building

 

While it’s not as well-known as other investment locations, Slough property for sale represents a standout opportunity for investors. An established London commuter town, it offers affordable properties compared to the capital and is under 20 minutes away by train. This puts it in high demand with those who work in the capital but don’t want to live there – 49% of the properties in the town are rented by London workers.

This level of demand has translated to the towns current – and future – property prices. Property for sale in Slough has increased in value by 159% over the last 20 years and is forecast to rise by 19.1% by 2025.

Why Invest in Slough: Demand

Slough retail shops

 

A vital part of discovering a successful property investment is tenant demand. Long-term sustainable demand means long-term returns and higher growth potential. This is what makes Slough Buy-to-Let property so popular – it’s an established commuter town with around 60,000 people commuting in and out everyday.

With career opportunities available at huge global brands – as well as property prices that are half that of London – a number of young professionals are choosing to call Slough home. Young professionals are one of the most desirable demographics for Buy-to-Let investors and make up the largest percentage of the UK rental market.

This has played a huge part in forecasts for Slough’s population, which is expected to rise to 158,000 in 2021. When we consider that both renters and buyers in the London market are choosing to move into the more affordable London Commuter Belt – and towns such as Slough – there’s incredible potential for investors purchasing property in Slough in 2022.

Why Invest in Slough: Rental Yields

Slough The Works

 

The Slough property market is one of the most affordable in the South East and much more affordable than the nearby London market. The average property price in Slough is £394,667, compared to London at £648,942. This means demand for Slough property remains incredibly high, especially when we consider its proximity to the capital and relatively low levels of supply in the market.

This also means that rental yields in Slough are exceptional, particularly if we consider forecasted growth going forward. Rents have steadily increased over the last year – despite lockdown – which means average rental yields in Slough now sit at 3.90%, higher than both the London and UK averages.

Looking ahead, the future is bright for property to rent in Slough. JLL suggest that rental prices in the wider South East have the potential to rise by 12% over the next four years, driven by the regeneration that is occurring as part of the Heart of Slough masterplan. 

Why Invest in Slough: Capital Growth

Slough The Centre

 

Capital appreciation is a clear objective for many investors alongside yields and demand. Investing in Slough property has the potential for incredible results, especially considering the trajectory that the town is on in terms of new development. 

Average property prices in Slough have risen by 45% over the last ten years, taking advantage of London’s slow recovery and new regeneration. 

Thanks to continued demand from commuting professionals in the area, these rising prices look set to continue. Savills predicts that Slough property prices will increase by 19.1% over the next five years – a clear indicator for investment and much more than London is predicting over the same timeframe.

Finally, one of the most common responses to the question ‘why invest in property in Slough in 2022’ is that Slough remains more affordable than the capital, which is attracting many London leavers. 46% of properties in Slough are let to London leavers, highlighting the sustained demand a Slough investment can offer vs a London investment. 

Why Invest in Slough: Regeneration

Slough The Centre

 

The redevelopment of Slough’s amenities was kickstarted by the £3 billion Heart of Slough masterplan. Starting with projects such as The Curve and The Centre, it’s expanding to all aspects of the infrastructure, creating an amazing place to live and work.

Similarly, the residential sector has been revolutionised with developments such as The Metalworks and New Eton House, two luxury SevenCapital developments designed to take advantage of Slough’s growing demand.

Finally, the introduction of the Elizabeth Line as part of the Crossrail project will upgrade transport links across the London Commuter Belt, improving both capacity and travel times for commuters. 

The amount of money being funnelled into the town should be a sign of confidence for investors and will typically lead to rising property prices and asking rents. For investors asking why invest in Slough 2022, the developments on the horizon are proof enough that Slough is an emerging UK investment hotspot. 

Why Invest in Slough: Business

Slough Jeep Headquarters

 

Slough has an incredible local economy driven by world-class business and a strong sense of entrepreneurship. With a turnover of £9 billion, rising demand is being noticed by companies that are moving to the region for its ambitious and talented workforce.

Ranked 4th for productivity by TechNation, Slough is home to over 92,000 jobs across 5,400 businesses. This has cemented its position as a business hotspot and is a major contributor to Slough being one of the ‘most productive urban areas’ in the country.   

Home to the largest trading estate under single ownership in Europe, it hosts household names such as SAP, O2, Waitrose, Three and Samsung. On the other end of the scale, Slough has been recognised as one of the top UK cities for start-ups over the last five years, supported by young entrepreneurs and talented workers. 

With both London and Heathrow accessible in under 20 minutes, everything is in place for Slough to become Berkshire’s economic powerhouse. With the town already offering more affordable, higher performing investment opportunities than nearby Reading, it seems we’re already seeing the early signs of this changing of the guard.

Why Invest in Slough: Transport Links

UK Train Station Lockdown

 

Easy access to transport links is one of the key factors for tenants – in fact the Knight Frank Tenant Survey has shown that over 50% of tenants consider transport links an important factor when choosing where to live.

Similarly, Nationwide has found that properties near transport links (within 500m) can offer a premium of 9.4% compared to properties further out. This makes developments such as The Metalworks in Slough a clear winner for maximising returns.

Transport links should be a key consideration for investors looking at Slough property for sale. Crossrail is the most obvious improvement for the region and will completely transform both travel times and commuter capacity. The ‘Elizabeth Line’ is reconnecting the London Commuter Belt and ensuring even quicker access to the capital – vital for Slough’s busy commuter population. 

At the same time, Heathrow Airport is under 20 minutes away and represents a clear benefit for workers that travel internationally. As the Western Rail Access to Heathrow (WRAtH) project continues to make progress, these links will only improve and create higher levels of demand. 

Slough Property Investment FAQs

Where is Slough in the UK? Plus Icon

Slough is a major town in Berkshire, located in the South East of the UK.

It is 20 miles west of Central London and 19 miles north-east of Reading, making it a prime ‘London Commuter Town’ because of it’s proximity to the capital and local jobs market.

At the intersection of the M4, M40 and M25 motorways, it is within the London metropolitan area and had a population of 164,000 at last count (2018).

Local attractions around the town include Windsor (which is 10 minutes away by road), Eton College (which is 3 minutes by road) and Ascot (which is 20 minutes by road).

Is Slough still a good place to invest in property? Plus Icon

While London property continues to experience a slow recovery, Slough property remains a clear investment opportunity.

The South East has gone from strength-to-strength over the last 10 years and experienced some of the highest price growth in the country. Even now, it’s forecasting increases of 19.1% by 2025.

One of the major positives for the town is the affordability it can provide investors looking to purchase in the South East. It’s nearly half the price of London and is delivering much better yields.

As London’s price growth starts to gather pace, commuter towns may not be in the spotlight as much as they are now. That said, Slough is still a good place to invest in property if you’re looking for long-term potential going forward.

This growth will mainly be driven by regeneration such as Crossrail, which will revolutionise travel in the region and allow for many more commuters to use the line.

Does Slough have a good rental market? Plus Icon

For investors focused on long-term rental yields, having a strong rental market is vital. This is largely driven by several things: affordable properties, above-average asking rents and consistent demand. 

The Slough market can offer all of these things, especially in a more expensive region such as the South East. A major positive is the high traffic supported by its workforce, which all but guarantees demand across the town.

It also has the benefit of relatively high asking rents but is much more affordable than neighbouring London or Reading, which of course ensures a better rental yield on average.

As with many locations across the country, Slough is also suffering from undersupply. There’s a distinct lack of quality apartments in the town, which is a common preference for many investors. This is where developments such as The Metalworks can stand out from the crowd, offering something that isn’t readily available.

Why invest in Slough property over London property? Plus Icon

A common question asked of any London Commuter Belt property investment is simple: why invest in Slough property over London property?

Simply put, Slough represents a more affordable entry point into a market that is offering better yields than the capital. Based on figures from both Zoopla and the Homelet Rental Index, we can see that Slough is currently outperforming London.

Slough rental yields currently average at 3.90% versus 2.90% in London, demonstrating the strength of the rental market compared to property prices in the two markets. 

At the same time, Slough can offer a much more affordable lifestyle which is attractive for many young professionals working in London. Our research shows that a standard of living that costs £4,500 in London would only cost £3,449 in Slough – a huge saving in terms of shopping, eating out and other amenities. 

That said, residents in Slough don’t have to give up London living for good – with the capital a short train journey away, the opportunities afforded by the capital are still within easy reach. 

Ready to occupy

No.1 Thames Valley

Bracknell

1 Bedroom Apartments, Studio

Prices From

£199,950

Right Arrow

Ready to occupy

The Metalworks

Slough

1 Bedroom Apartments, 2 Bedroom Apartments

Prices From

£240,000

Right Arrow

Final Units Remaining

The Grand Exchange

Bracknell

1 & 2 Bedroom Apartments, 1 Bedroom Apartments, 2 Bedroom Apartments

Prices From

£300,000

Right Arrow

Ready to occupy

105 Broad Street

Birmingham City Centre

2 Bedroom Apartments

Prices From

£252,950

Right Arrow

Ready to occupy

Churchill Place

Basingstoke

Studios

Prices From

£139,950

Right Arrow

Ready to occupy

New Eton House

Slough

1 & 2 Bedroom Apartments

Prices From

£239,950

Right Arrow
View all Developments