Reading is the largest place in the UK that isn't a city but it has everything a big city could need, like great amenities, good transportation, and, most importantly, a lot of national and international companies offering well-paid jobs. Being near the M4 Reading is one of the most important towns along the M4 Corridor making it a great place for large businesses and people who commute plus the recently opened Elizabeth Line makes living here even more attractive to London commuters and further boosts the Reading property market.

The many large business parks in Reading mean that there is a huge demand for Reading buy-to-let properties. There are 7,000 people who work in Arlington Park, Green Park, Reading International, Winnersh Triangle, and Thames Valley Park, plus the new Thames Valley Science Park in Shinfield, which employs around 5,000 people. Vodaphone, Deloitte, PepsiCo, Microsoft, Amazon, CGI, Apple, Accenture, and PwC are just some of the big global companies in the Reading area.

Royal Berkshire Hospital, the University of Reading, and The Oracle, a shopping, dining, and entertainment centre in the city centre employ more than 4,000 people. Reading is a university town with over 14,000 students, so HMO investors are drawn here. Wokingham Road, Earley, and the town centre are all streets near campuses that are popular with students. If you want to buy an HMO in Reading, you can get more information from Reading Borough Council here. Reading Borough Council has put in place an Article 4 direction that takes away the right to build HMOs in certain parts of Reading, including near the university. This means that you need a building permit to make a new HMO.

Property Prices in Reading:

The latest Land Registry information shows that the average price of a house in Reading reached £334,985 in December 2022. This was up from £330,466 in November, which means it went up by more than 1.4%. In the past year, it has gone up by 9.5%.

When it comes to different kinds of housing, all prices went up:

  • Detached homes went up to £706,206 from £698,983 in November
  • Semi-detached houses rose from £430,508 in November to £435,576
  • Terraced houses went from £338,334 in November to £343,028
  • Flats increased from £225,549 in November to £229,383

According to home.co.uk, there are about 600 homes for rent in Reading. The average rent is £1,747 per month. Reading town centre is set to get a lot of new homes, so this could be a big growth area for the Reading rental market in the future. Based on the Reading, RG1 postcode, yields in this area are around 4.6%.

Why buy and let through WhiteKnights?

The team at WhiteKnights have been selling homes in Reading for more than 35 years, so we know the area inside out and have a lot of experience working with investor landlords. We can offer a unique perspective on what kind of properties to buy and how to get the most out of them, both for short-term yields and long-term capital growth.

Our top tips for Reading property investors are:

  • To the south of central Reading is an area known as Whitley Wood, originally built for the local authority and now mainly privately owned. These houses represent good value for money versus other areas, so try not to be deterred by the ‘history’ of the area. The rental prices are not that different to higher-value housing stock elsewhere in Reading and the properties typically perform as well in terms of capital growth.
  • Professional investors often prefer apartment blocks as part of a rental portfolio as they would rather pay a service charge than maintain the exterior of the building themselves. For those that have the need to consider an ‘exit route’ from buy-to-let, it is worth buying something in an established location that is likely to appeal to both homeowners and investors alike.
  • Spread the risk; consider buying two smaller properties rather than one big one. After lengthy discussions with a recent investor who was thinking about buying two houses at circa £600,000 - £650,000 each, we discovered that these would typically achieve lower yields and be harder to rent in a tougher market. It was more advisable to consider two or three smaller properties with stronger yields and easier to rent, such as a one-bed and either two 2 bedrooms or a 2 & 3 bedroom property.
  • If you are considering a two-bedroom property, try to find two doubles then you will appeal to a wider audience; a couple, family or two adults sharing, maximising the return on your investment and the speed and consistency of the let.
  • Ensure to Check the EPC and, where possible, go for a minimum of a C rating to future-proof against potential change in energy performance legislation.

Here are some of our recent buy-to-let examples:

Property investing in Reading Berkshire with WhiteKnights Estate Agents

 

 

Property investing in Reading Berkshire with WhiteKnights Estate Agents 2Download our Landlord Guide Here

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