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Why invest in a Commuter Town Property?
The London Commuter Belt is one of the hottest property investment spots in the UK right now, motivated by incredible job opportunities, travel links and an expensive London market.
Property prices in London have had their first major price decline since 2009, which has led to the focus shifting to properties on the commuter belt. With smart-new amenities and leisure spaces alongside significantly lower living costs, commuter towns have become an increasingly popular prospect for both investors and property investment companies like Seven Capital
Why invest in the commuter belt?
A lot of commuter belt towns have regeneration schemes in place to keep up with the demand for homes in those areas. These include schemes to develop lifestyles, new jobs as well as communities which presents a great opportunity. We have a lot of branches in commuter hotspots where new developments are taking centre stage. Lime Tree Place in Witham, Lyon Square in Harrow are great examples providing a great commute time into the city with the affordability that you can’t find in London.
How will the Crossrail affect property prices?
While demand is already high for commuter towns, the introduction of the Crossrail will mean journeys into London for a lot of these towns will be a lot shorter. Locations planned for the Crossrail have already seen a boost in investment and tenant demand with some properties within a mile of stations increasing in value by 66%. We have a number of branches including Ealing, Ilford and Harold Wood which are located on the Elizabeth Line route.
While the ‘traditional’ commuter belt which covers the towns immediately surrounding London has seen property prices increase by nearly 313%, the ‘outer commuter belt has also seen property price growth of 344% over the last 20 years, proving the demand for more affordable property for London professionals.
What is the commercial benefit to commuter hotspots?
When demand is high in commuter belt locations it helps to drive commercial growth, especially in those towns that have regeneration projects ongoing. Slough is one of those locations that holds the largest trading estate under single ownership, who have attracted companies such as Orange to be based there. Reading is also a commercial hotspot for the creative and digital industries, close to London and Heathrow airport it’s the fastest growing region in the UK for tech startups. Cambridge has a strong connection to the science sector thanks to its connection with Cambridge University. The area attracts professionals looking to work in Science and Technology roles, so it is also a great location to invest in property.
Seven Capital, a property investment company who specialize in commuter belt developments as well developments in Birmingham and Manchester, have predicted that when the Crossrail becomes fully operational property prices and tenant demand will rise as well as Commuter belt popularity. They also predict that although London’s growth is set to stagnate next year, property prices are predicted to rise post Brexit. The success of surrounding commuter towns will depend on London’s outlook but the main aim for the commuter belt is to maintain a good lifestyle for the population and those commuting.