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Slough ranked as top buy-to-let location

Tuesday 24th March 2020

Slough ranked as top buy-to-let location

Slough is the top location to purchase a buy-to-let property, according to lettings management company Howsy.

The town has some the highest average wages, good rental values and yields, as well as growing house prices (until the COVID-19 outbreak).

It is also in a prime position along the Crossrail route, while there will be access to Healthrow via Western Rail from around 2024.

Other areas which ranked highly were Bracknell, Oxford, Luton and Swindon.

Bracknell is currently undergoing a £770m town centre revamp, which has already seen the introduction of a £240m retail and leisure destination, The Lexicon.

Oxford offers higher rental growth on actual terms, owing to its higher property and rental prices.

Luton is cheaper to rent and buy, while it has an airport, three train stations, and is a 22-minute train route away from London.

Swindon has lower average rents but the strongest rental yields of the top five.

More tenants can’t afford a deposit

Almost two thirds (64%) of tenants cannot afford a deposit to allow them to purchase their own home, research from yieldit has found.

This represents a significant increase from the 56% who said they couldn’t afford a deposit in late 2018.

Just a third (34%) are currently saving for a deposit, while a fifth (26%) believe they did not meet the criteria for securing a mortgage.

Ryan Hughes, head of sales at yieldit, said: “Landlords are fortunate that we have a lively rental sector in the UK with many tenants remaining in properties for years at a time, which helps maintain a steady income for the landlord and keeps the sector buoyant.

“That said, it’s concerning to see the number of tenants saying they can’t afford to buy increase yet again.

“Renting is ideal for lots of people, for example those who are ready for their first taste of independence but don’t want the long-term commitment of a mortgage, but it shouldn’t be a barrier to purchasing a home.

“Of course, at the moment there are unprecedented concerns regarding paying rent which we believe are only lessening the likelihood of renters seeking to move.

“And with only a third of respondents saying they were currently saving for a deposit — and with financial uncertainty likely to make people dip further into those savings — it looks like the numbers of renters in the market won’t be changing any time soon.”

The research was undertaken before the COVID-19 outbreak.

Article by Ryan Bembridge (Property Wire). You can also read the full article here

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