Generation Rent Inevitable in Bracknell & Wokingham as Prices Rise by £323 Every Week!

Although annual house price inflation is now below 10% this offers little hope for Generation Ren...

Although annual house price inflation is now below 10% this offers little hope for Generation Rent as prices are still rising faster than their ability to save.

According to the latest stats from Land Registry, showing data from September, the annual price growth for flats and terraced houses in Bracknell is starting to slow but is still at 6.9%. This equates to an average weekly price increase of £276 for a terraced house and £210 for flats.

In Wokingham the situation is even harder for people trying to save a deposit to buy their own home. Average price growth is 9.7% with terraced houses rising by £447 per week and flats by £358. This has led to many people resigning themselves to the reality that they will never own their own home. Research by PricewaterhouseCoopers (PwC) suggests that 1 in 4 homes will be rented accommodation within 5 years and with the figures above it is easy to understand why. Successive governments have failed to match housing supply with population growth with increasing demand leading to higher prices.

This means that the appeal of investing in a buy-to-let property remains as strong as ever. A good quality property in the right location will have a ready supply of tenants. Rental voids are at a 13 year low with properties occupied for almost 50 weeks of the year, this gives landlords confidence in a healthy return.

If we factor in average rental income of between 4.5-5% then local investors are looking at a gross annual yield of over 14% for Wokingham and nearly 12% for Bracknell. You certainly can’t get those sort of returns at your bank!!

To take advantage of these favourable market conditions you should consult your local lettings specialist to be sure of honest and impartial advice on which location and property type best meet your investment goals.

Belvoir Bracknell don’t sell property, we are lettings specialists, but we do guide people based on our experience as to what might make a good buy to let property investment in the Bracknell, Wokingham, Crowthorne and Binfield area. We don’t charge for this service but we would like to manage your property or help you find great tenants.

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