With so much uncertainty remaining across the UK, it might be difficult to know where to go next with your property investment plans. However, even though Brexit and politics are far from certain right now, a new development in Bracknell suggests the town that is already very much part of the UK's tech corridor, still has some value for residential property and BTL investors.
Dubbed the UK’s Silicon Valley, the M4 corridor that stretches from Slough to Reading has seen some rapid house price growth in the past decade. Indeed, even while Brexit uncertainty has dampened activity and growth in London and parts of south east England, house price growth and rental demand have both been positive to the west of the English capital.
For those of you looking to benefit from demand for property around the M4 tech corridor, Bracknell could be the next property investment hotspot that you’re looking for.
Why Bracknell?
There are actually quite a few reasons why Bracknell is a smart property investment option right now. First of all, even though the average residential property price has risen by around 48% in the past decade, at an average price of around £395,000, property there still remains more affordable than nearby Reading, London and Ascot.
In addition to that, as well as being firmly in the M4 tech corridor, Bracknell is also just a one-hour commute from London. But that’s not all. A multi-year regeneration project of the town, to the tune of £770 million, combined with the £240 million development, The Lexicon, have combined to make it an attractive town with lots to keep the tech companies that have invested in the region and the many people who work there comfortable and well provided for.
Specifically, data shows that Bracknell has one of the highest proportions of employment by tech companies – 16.2% - in the UK. That’s almost double the UK average of 8.4% and highlights that technology companies who have put down roots in the town are supporting the local population.
Future demand should support investment returns
Of course, when you’re planning your next private rental sector, buy-to-let investment, its important to find somewhere that also has solid future potential. Something that helps you feel confident that you’ll gain the ROI you’re looking for and an annual yield that works financially, both today and in the future. Again, Bracknell doesn’t disappoint.
In terms of population growth, forecasts are for a 15% increase in the town’s population by 2036, from its current 120,000. With rental demand across much of England already outstripping supply, that suggests demand for homes across all tenures will also increase.
If you are considering your next BTL investment purchase and Bracknell seems like it could fit the bill, but you haven’t been a landlord in the town before, there are ways to help safeguard your investment, should you go ahead with it. They include:
- Get to know local, reputable lettings agents.
- Do your research on average earnings and the specifics on the balance between supply and demand of rental properties.
- Consider introducing rent guarantor requests into your contracts – at least until you’re comfortable with being a BTL landlord in Bracknell.
However, with the town home to a lot of technology professionals and the amenities to encourage them to stay in Bracknell, there’s a lot to suggest it could be the next property investment hotspot and one that’s just right for your plans.
