Savvy investors are always in the pursuit of the next investment hotspot and to be as successful as possible, they need to stay ahead of the UK property market.
Record numbers have left London since the lockdown, not just homeowners selling up and buying in the country but tenants too are seeking property in areas outside of London which offer an easy commute back into London for the days when they’re to be in the office.
Though the dynamics of where people are working has changed, with an increase in home working, there is still a requirement for time working together with colleagues face to face in the office, usually on a rota and only a few days per week. That means those leaving their cramped and often overpriced homes in London and moving out of the city still need to be able to reach the capital fairly regularly.
London commuter towns are seeing a huge increase in demand and there are a number of reasons why Bracknell stands out as a top buy-to-let option.
Located in the stretch of Berkshire dubbed ‘the UK’s Silicon Valley’, with a digital economy estimated to be worth well over £10 billion, the area around Bracknell and nearby Reading is the second-largest tech hub in the UK after London.
Companies in the area specialise in data management, cloud computing and software employing about 40,000 workers. Furthermore, the population is set to continue growing, with predictions indicating around 15% growth over the next 15 years, one of the highest projected growth figures in the UK.
Huge brands such as Dell, Honda and HP are just some of the companies operating out of Bracknell, spurring on economic growth and an increase in the population; over the last 10 years, nearly 40% of office space has been taken by tech firms.
Though the local economy is strong and there are plenty of employment opportunities to attract tenants to the area it is also ideal for those who need to reach other key destinations regularly.
Bracknell is just one hour from London Waterloo by train and the M3 and M4 motorways are both nearby for road connections. For travel by air, Heathrow airport is 25 minutes away by car and Gatwick 45 minutes away – Bracknell is very well connected and is an ideal commuter hotspot.
Regeneration and development
Bracknell is partway through a 20 year plan that includes a £770million regeneration project. Nearly 3 years ago the £240million rebuild of part of the town centre was completed bringing 70 new shops, restaurants and a cinema.
Further cementing the excellent lifestyle on offer in Bracknell around £2.6million is set to be put into creating a new country park at Horseshoe Lake on the edge of town which will include a café, water sports facility and children’s play area.
The council are focused on their vision, and the Bracknell Forest council have indicated the further £500million is being invested in regenerating transport, education and healthcare.
Despite prices having grown by almost 40% in the past 10 years, Bracknell’s house prices are significantly lower than those of nearby commuter areas, especially the likes of the exclusive neighbouring areas Ascot and Windsor.
With such exciting plans for development, a growing economy, increasing population figures and short commute times, Bracknell ticks all the boxes for an ideal place to purchase a buy-to-let.
For many tenants, London’s appeal as a place to live is fading, deemed expensive demand for housing is moving out of the city – London commuter towns are increasingly under the spotlight for property investment.
London tends to offer lower yields than are available in other parts of the country, investors who can’t see the merit in purchasing a buy-to-let property in the capital are turning their attentions to areas within reachable distance. With available yields as much as double those available in the capital it can pay to invest in property in a commuter hotspot.
The London commuter towns with the very best potential are those that have an exceptional home economy, locations where the local economy is thriving, the population is growing and whilst there is the ability to reach London easily there are plenty of opportunities for employment in the town itself – Bracknell is one such place that offers both.
Where to invest
Some commuter towns have already peaked and investors should be wary of this when considering which commuter towns they choose to invest in.
The anticipated arrival of Crossrail certainly pushed values in towns such as Reading and there are others similar that now offer less opportunity for growth, that’s not to say there is no potential in these areas, it’s just that catching a property market at an optimum time results in the greatest return on investment.
If you’re considering purchasing a buy-to-let property in the UK our experienced investment consultants can provide valuable guidance and insights to ensure you make a well-informed investment decision. We’re available on +44 (0) 203 950 7939 UK or +971 (0) 4 818 7277 Dubai or email us on firstname.lastname@example.org, and we shall reply as soon as possible.