Property Investment in Slough
While it’s not as well-known as other investment locations, Slough 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 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 demand means Slough has high potential for growth and much better rental yields than surrounding areas. Property prices in the town have increased by 230% over the last 20 years and they are forecast to rise by 15% over the next four years.
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Why Invest in Slough: Demand
One of the most important measures of success in property investment is tenant demand. It’s vital for investors to find locations that provide sustainable demand for long-term growth. This is why Slough Buy-to-Let property is so popular with property investors. It’s an established commuter town with around 60,000 people commuting in and out everyday.
Attracted by the career opportunities available at huge global brands – as well as property prices that are half that of London – many young professionals are choosing Slough. 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.
It’s expected that Slough’s population will rise to 158,000 in 2021, while London’s continued slow recovery and sky-high house prices will likely continue. This will push buyers into choosing the more affordable London Commuter Belt and should be a huge signpost around why invest in Slough property for 2021.
Why Invest in Slough: Rental Yields
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 £343,909, compared to London at £666,842. This means demand for Slough property remains incredibly high, especially due to its proximity to the capital.
This also means that Slough’s rental yields are exceptional, especially when we take into account forecasted growth going forward. Rents have increased by 5.1% over the last year across the region, which means average rental yields in Slough now sit at 4%. This is much higher than the 2.83% London average suggested by the Homelet Rental Index.
Looking ahead, the future is bright for the South East. JLL suggest that rental prices 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.
South East Investment Guide 2021
Want to get the lowdown on Slough investment in 2021? Our South East Investment Guide 2021 is filled with insights into the market.
Discover Slough forecasts for 2021 plus what regeneration means for this commuter town. From upcoming projects to the £3 billion pound project currently transforming the skyline, here’s why you should be considering Slough property investment today.
Why Invest in Slough: Capital Growth
Capital appreciation is a clear objective for many investors alongside yields and demand. Investing in Slough 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. JLL predicts that Slough property prices will increase by 15% over the next four years, which is excellent for those that have already invested in Slough property.
Finally, one of the most common responses to the question ‘why invest in Slough property 2021’ 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
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 Iron House and New Eton House, two luxury SevenCapital developments designed to take advantage of tenant demand from young professionals.
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 funneled 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 2021, the developments on the horizon are proof enough that Slough is an emerging UK investment hotspot.
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Why Invest in Slough: Business
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 the ‘most productive urban area’ 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 is recognised as the ‘start-up capital’ of the UK outside of London, 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
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 part of Slough’s appeal for both investors and tenants. 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 busy commuters.
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
Why invest in Slough property over London property?
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 4% versus 2.83% 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.
Does Slough have a good rental market?
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.
Slough Property Forecast
Heading into 2021, the future looks bright for Slough. While London’s recovery is predicted to remain slow in the new year, commuter towns such as Slough can continue to push ahead. JLL predicts that prices in the region will increase by 15% over the next four years, while rental prices will increase by 11.5%.
The stamp duty holiday will no doubt play a major role in assisting these increases. With many of the properties in the South East just fitting into the £500,000 bracket, there’s potential savings of £10,000 for investors. At the same time, these properties are delivering a high-quality standard of living with easy access to one of the most popular cities across the globe.