Source: GVA Property Impact Study – Oct 2012
Maidenhead has seen a sharp rise in the number of people interested in Buy-to Lets. This has been fuelled by the construction of Crossrail due in 2018 where Maidenhead will be the last stop. This means that someone working in the Docklands can get on the train at Maidenhead and an hour later be at work on the other side of London. No tubes to catch, no walking miles in underground tunnels in 30 degree heat , just a relaxed journey where you can settle down and read your kindle, or catch up on some paperwork.
As London prices look set to rise even further it makes sense to move out of the capital where you can get much more for your money but still be able to reach your office in a reasonable amount of time and with minimum hassle. Maidenhead provides all of this together with fantastic motorway links namely, M4, M40 and M3 and Heathrow a 15 minute drive away. Crossrail also brings the west of London with all its’ theatres virtually to Maidenheads doorstep.
Maidenhead is in the process of regeneration with plenty of proposals in the pipeline to make it into a thriving, picturesque place to live with plenty of decent shops, fantastic facilities and great travel links.
There is likely to be good capital growth and good yield from buying a property to let in Maidenhead as rents will go up as people head away from London. Most investors are looking at properties within a 20 minute walk of the station.
Also, it is not just flats that buyers are looking for although in Maidenhead there are many new build flats being built at present. As people get priced out of the London market they will want to move out so why come all the way to Maidenhead for a flat? If you have children you might be looking to rent somewhere quieter with less of a “buzz” and be able to afford to rent a house (as opposed to a flat) in Maidenhead. Consequently, 2/3 bedroom houses will probably rent well too.
Slough is also a good investment for buy-to let as it is also a Crossrail station and is cheaper to buy initially than Maidenhead. Slough has not had a good image in the past but recently some of the biggest IT and Telecoms companies have been moving into the area and consequently there are a large number of workers requiring accommodation close by and with more companies likely to follow suit. You could buy two flats in Slough for the same price as one in Maidenhead and so would be increasing your yield. We are seeing 6.5% to 7% on a £300,00 investment at present.
A report has recently been done by the GVA who are the UK’s largest independent commercial property consultant.
The report illustrates how Crossrail will have a marked impact on a number of central London and suburban locations along and around the Crossrail route where the new railway will help stimulate investment in commercial activities, retail and housing. The report findings unveil which areas these are, and what the scale of those changes is likely to be as per the chart at the top of the page.
One can see from the chart, most stations along the Crossrail route will be impacted but some more than others. It is encouraging to see Maidenhead is already progressing in the right direction with Crossrail reinforcing that direction whilst the “Creating Change” areas are showing early signs of regeneration.
In summary, no one has a crystal ball but I believe you can get no safer investment as, barring a world crash, property investment close to Crossrail stations is predicted to rise (the Evening Standard recently stated 40% in London). How much the increase will be in Maidenhead and Slough is questionable but you could be seeing an exceptional return on your investment.
