The rise of Slough

Artist’s impression of Atria, which is a 10-minute drive away from Slough train and bus station.

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With Crossrail, Western Rail Access to Heathrow (WRAtH) coupled with regeneration projects worth £1 billion planned over the next two decades, Slough is fast becoming an ideal place to live, work and play.

Despite the uncertainty caused by the EU referendum, property prices in the UK continued on an upward trend in June 2016. Statistics released by the House Price Index, which uses figures collated by the Office for National Statistics, showed house price growth of 8.7 percent from June 2015 to the month ending June 2016, with Slough’s property market registering the highest price growth in the UK (24.6 percent year-on-year). The huge price growth has been driven by robust demand for properties and a rise in transactions.

According to experts, the huge increase in Slough’s property prices can be attributed to the new Crossrail project, which will connect Slough directly to London’s major stations, including Bond Street and Tottenham Court Road in just 30 minutes when it opens at the end of 2018.

“Much like the RER in Paris, the rail link will connect stations on the line to key nodes in the city, including the West End, Square Mile, Canary Wharf as well as Heathrow Airport. As the largest infrastructure project in Europe, it is having enormous real estate benefits for all stations on the line, including at Slough,” said Adam Challis, Head of UK Residential Research at JLL.

The new rail line, which is named the Elizabeth Line, will include 40 stations along the routes from Reading and Heathrow in the west to Shenfield and Abbey Wood in the east. Slough is the sixth stop along from its Reading starting point in the west and is just a mere 11 stops away from central London’s Bond Street and 14 stops from the City’s Liverpool Street.

Looking ahead, JLL’s research team says that Slough is expected to experience the sixth biggest impact to property values as a result of the Crossrail project.

“This impact is already showing up in terms of house price growth. In fact, Slough earned the title of the fastest house price growth in the UK in February at over 19 percent per annum, according to Land Registry figures.

“With house prices in the London area having nearly doubled since the global recession in 2009, locations such as Slough are experiencing overwhelming demand as purchasers seek more affordable locations. With big infrastructure improvements ongoing and the Crossrail due to complete in 2018, this area is expected to see continued strong market activity over the next few years,” Challis added.

Reasons to invest in Slough

Seamless connectivity

Set to change the way people travel around London and the south east, the new Elizabeth Line, once opened at Slough station at the end of 2018, will not only significantly cut journey times, but it will also allow commuters to travel right into the centre of London without having to change trains. This is definitely great news for those working in the city and are looking for homes outside of the city.

Apart from the new rail line, homeowners and investors will also be pleased with the upcoming Western Rail Access to Heathrow (WRAtH) – a brand new direct rail link between the west of England and Heathrow Airport, which is expected to begin construction works in 2017, and is slated to complete by 2021.

The current travel time from Slough to Heathrow is 35 minutes by bus and 45 minutes by train. For the latter, commuters will have to change trains at London Paddington, but once WRAtH is launched, the total journey time is expected to be no more than six minutes.

The much-anticipated project is expected to result in more than £800 million of economic activity and provide jobs for an estimated 42,000 people, and there is no doubt that Slough will enjoy a big chunk of this success.

A vibrant commercial district

A dynamic business district with more than 4,600 businesses located in the area, including international dynamos such as Blackberry, Maserati, O2, Mars, Honda, Burger King and more, Slough is currently the third most productive town in the UK, contributing some £8 billion to the national economy.

That’s not all, as analysts say the future ahead is definitely even brighter for Slough, as the town is undergoing massive changes.

“Slough is undergoing a dramatic transformation as part of the £400 million ‘Heart of Slough’ programme that is backed by the UK government and the Homes and Communities Agency. This programme aims to deliver a strong cultural and technology employment in Slough Town Centre as part of a major regeneration of the area. When complete, it will include offices, a shopping precinct and close to 1,600 new homes,” shared Challis.

More than 39 sites across the Borough are also set to experience a transformation over the next 25 years.

Great investment potential

Going forward, analysts foresee that average house prices around Elizabeth Line stations will continue to rise.

A recent report by property consultancy CBRE predicts that average prices around Elizabeth line stations will increase 3.3 percent per year above local house price growth until the line launches in 2018/19, while major professional services company JLL forecasts that Slough will see huge property price growth, reaching as high as 45 percent by 2020. This means that those who invest this year in a property worth £245,000 could see that increase by £100,450 in just four years – shifting its value to a whopping £345,450.

Affordability

Despite the huge increase in Slough’s property prices in recent years, they are still relatively cheaper as compared to those closer to the city, making it the perfect place for home buyers who are looking for homes away from London, yet still have convenient city transport links.

“In comparison with near neighbours in all directions, Slough’s housing market has historically been an under performer – average house prices in Slough are £297,000, in comparison with Windsor’s £485,000 to the south, or the wider Buckinghamshire’s average of £388,000 to the north,” said Challis.

Why buy now?

The Brexit vote in June has sent the British pound tumbling – on the day Britons voted to leave the EU, the pound fell by four percent to around S$1.85. And as of last week at S$1.74, the sterling has plummeted by about 16 percent to the Sing dollar this year, having started this year at S$2.08.

Industry watchers say that while the greatly weakened British pound has caused some investors to be more cautious, there are many others who are looking to seize investment opportunities.

Vanessa Chan, Associate Director of International Residential Property Services, Singapore at JLL, was quoted as saying in a recent news report: “We have noticed a marked increase in inquiries… These enquiries have come from not only one particular country but also dollar- and euro-based buyers taking advantage of a weakened sterling.”

Paul Ho, founder of online portal www.iCompareLoan.com added, “Right now is a great time to buy for many international buyers. The fall in sterling means that dollar buyers effectively enjoy more than 10 percent discount compared with the day of the referendum vote.”

Property to look at

Atria

Conveniently located on Bath Road, just a 10-minute drive away from Slough train and bus station, Atria, which is developed by Galliard Homes – one of London’s leading property developers, comprises 108 stylish studio apartments, as well as a good mix of one- and two-bedroom apartments. Ideal for owner-occupiers as well as investors, buyers can be assured that every apartment has been expertly designed and outfitted with impressive features including fully-integrated kitchen appliances to complement a fast-paced lifestyle. Apart from top-of-the-range fittings and finishes, residents can also look forward to utmost convenience – the Queensmere Observatory Centre, which is home to more than 126 retail stores and restaurants, is located within close proximity to the development.

Prices start from £169,995 for a studio suite.

Seminar & Exhibition for Atria London Launch:

Event Dates: 3 to 4 September 2016
Exhibition Timings: 11am – 7pm
Venue: St Regis Singapore (Senator Room)
Seminar Topic: UK Property Market Outlook
Seminar Timing: 2pm

Seats are limited, RSVP now: http://access.jll.com/sg-london-atria/

Disclaimer: All forms of investment carry risks, including the risk of losing all the invested amount. Such activities may not be suitable for everyone. This is an overseas investment. As overseas investments carry additional financial, regulatory and legal risks, investors are advised to do the necessary checks and research on the investment beforehand. The British government imposes certain taxes on buying UK property. Buyers will need to consider these taxes and other costs before making a purchase.