As we head into 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.
Named as the Best Place to Live and Work 2018 by Glassdoor, winning the award for the second year running, Slough is home to around 68,000 jobs, a £9 billion economy and the largest concentration of global businesses outside of London.
Simply put, Slough is a commercial powerhouse and its this economic strength that’s leading to property prices forecasting such incredible growth. With the prices currently sitting at £394,142, Slough remains much more affordable than the London average of £651,033 but has still seen price increases and decreases of around 0.5% in the last year, after rising by 13.8% over 2017.
This can mostly be attributed to Brexit, which has caused both buyers and sellers to hold fire on making any moves in an uncertain market. As it begins to recover throughout 2019 and beyond, JLL still forecasts a 35% increase in Slough property prices by 2020, putting the town 4th in their ‘long-term potential’ report for the wider Commuter Belt.
Thanks to the enviable employment opportunities available and continuing progress of huge development projects, Slough property prices are still forecasting unprecedented growth in 2019.
Slough Urban Renewal
With Slough currently the focus of substantial investment, the redevelopment supported by projects such as Slough Urban Renewal (SUR) is helping cement Slough as a savvy investment opportunity.
Game-changing developments such as The Centre, a £18 million leisure facility and The Curve, a library and cultural centre, are figureheads of a wider plan that will inject £1 billion into the town.
Coupled with Crossrail and Western Rail Access to Heathrow (WRAtH), these plans will rejuvenate infrastructure links, redevelop leisure facilities and create iconic buildings amongst a thriving Slough landscape.
Commercially, this will boost a town that is already a business hub thanks to Slough Trading Estate, the largest in Europe under single ownership. According to GVA’s Crossrail property impact regeneration study, “the core influence of Crossrail in value terms appears to be that it reinforces the strongest markets.”
The expansion of Heathrow with a third runway will bring nearly 40,000 jobs to the local population, further increasing demand for residences along the Commuter Belt, particularly in areas such as Slough.
In terms of property prices, Crossrail has already had a major impact and that is set to continue after its planned completion in 2019. Property prices within a mile of a proposed station have risen by 60% since 2009 and will only increase as demand grows for property near these key locations on the commuter belt.
The Slough station sits just 11 stops away from central London’s Bond Street, ideal for any commuters that want to get out of the capital’s property market. This also means that smart investors looking for a savvy purchase could make a move now and see enormous growth as the Crossrail Effect takes hold during 2019.
There’s also the potential for a second surge in the market – many homebuyers and investors tend to wait until a large infrastructural development is finished before making a decision. With Crossrail, WRAtH and other elements of SUR making huge strides in 2019, Slough could see a huge spike in property prices and yields.
The other big signpost for Slough success is the continuing stagnation of London property prices. Figures from Zoopla shows that 39% of properties in the capital have had a reduction in asking price since April 2018. Combined with ONS figures showing property price growth slowing to a six-and-a-half-year low, experts are agreeing that the London market is in bad shape.
With affordability so crunched, many residents are looking further afield to key commuter towns such as Slough, Basingstoke and Reading – contributing to the demand in these areas where a property is nearly half the price of that in the capital. In Slough alone, 46% of the homes are let to tenants who have moved from the capital, seeking better prices without compromising on accessibility and lifestyle.
This ‘exodus’ will continue throughout 2019 as rents in London skyrocket. Already the capital is seeing double the number of people in their early 30’s leaving for less expensive markets, with nearly 35,000 recorded in 2016 alone.
As the wider UK property market 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.
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.