The first thing that comes to mind when we talk about Newbury is its leading racecourse venue and training ground, or perhaps Highclere castle; the set for the popular tv show Downton Abbey. it’s unlikely our first thought is ‘investment opportunity!’, but it should be, and here’s why…
The property market in Berkshire is evolving. West Berkshire Council’s Core Strategy sets out a housing requirement for the district of at least 10,500 additional dwellings from 2006-2026, which equates to 525 homes per year. Thames Valley Berkshire LEP, alongside other local authorities in the county, has gone on to identify the need for an increased figure of 665 new homes a year over the period of 2013 – 2036. Simply put, this means there will be plenty of opportunity to invest in one of the South West’s up-and-coming areas.
If you get your market insights from the mainstream media, stop! Yes, of course, it’s important to keep an eye on what they are saying, but it’s much more important to get clued up on the 18-year property cycle and do your own research into what other property experts are saying. The media is currently leading us to believe it’s a bad time to buy, however, on the contrary, it’s still a great time for investors.
Thanks to the media creating mass hysteria, we are entering into a buyers’ market where people are too scared to buy, and investors can get some great deals!
What makes Newbury attractive?
Newbury is a sought-after area for a variety of demographics. There’s a great selection of pubs, restaurants, and bars around, as well as gyms, a leisure centre, and a cinema. On the main high street, you’ll find all the amenities you’d expect, as well as a range of independent boutiques which give the vibrant town its sense of chic exclusivity.
For someone wanting to get away from the hustle and bustle, Newbury is surrounded by generous amounts of countryside. Snelsmore Common Country Park, Benham Park, and Highclere Park (to name a few) are just a stones’ throw away, as are the North Wessex Downs, an Area of Natural Beauty in Hungerford. There’s a lot of choice when it comes to education and schooling as well, with many schools and places of higher education to choose from with both good and outstanding Ofsted ratings. This education leads residents nicely into the world of industry, with plenty of employers in the town and within easy commuting distance.
Outside of the town, on Newbury’s doorstep, is the M4 corridor – the UK’s leading IT and communications hub. Tech giants such as Microsoft, Vodafone, and Adobe have all set up base here and contribute vastly to our economic growth and employment – over £13.6bn a year to the British tech economy and over 45,000 digital jobs (some of these being amongst the highest paid in the UK).
Transport
The transport links in Newbury are excellent. There is a train station in the centre, from which you can get to Swindon in an hour, Reading in 20 minutes, and London Paddington in as little as 45 minutes! There is direct road access to the M4 as well as the A34, taking you to Oxford or Southampton in under an hour. For non-drivers, local buses regularly take passengers around the town and out to the surrounding villages, with stops positioned at supermarkets, Newbury College, and Newbury Racecourse.
The Newbury Town Plan states “It is an objective of the Town Plan to retain the current balance of the business and commercial role of the town with its residential role, to provide employment to residents and the surrounding area”. This is extremely reassuring to investors as the growth plan for the industrial sector will keep the demand for housing high.
The average price growth in the area was 6.46% in September 2021 according to Zoopla, and even more impressively there has been an increase of over 14% since 2019, Rightmove has shown. When looking to invest, we know that not only does capital growth play a huge part in narrowing down hot spots and areas of investment, but the return is also equally as important. Liveyield.co.uk are showing the average yield in Newbury to sit at a comfortable 4.9% – quite a way above the UK’s average of 3.63%. With lots of new building works happening, there’s a huge amount of choice depending on individual requirements and budgets. Whether you’re a first-time investor, or you’re looking to grow your portfolio, now really is a great time to put your money into the area!
