When it comes to the rental market in Reading, and Tilehurst, a couple of factors have had a big impact. Employment opportunities in the town come from major IT operators, telecoms firms and companies involved in the financial services sector. These industries are well suited to young professionals and people making their way in life but who aren’t quite at the stage of buying property. This means that there is a high level of demand for affordable and convenient rental property, and of course, these sectors entice a lot of people to the area, so there is a double bonus.

Another tangible reason why Tilehurst is an attractive option for the rental market is down to the educational facilities on offer. Towns with a notable student population are always worth considering when it comes to the rental market, which makes Tilehurst worth considering.

Crossrail is coming soon

Add in the fact that Reading is a suitable commuter option for London, which will be truer in 2019 with Crossrail connecting the town directly to more key areas of London and you have a town that is ideally suited for tenants, which creates the demand for landlords and investors.

Buy-to-let investors know that Reading has an active rental market with many tenants coming from the town’s big IT, telecoms and financial services employers. Some parents who bought homes for their children while they were at university have decided to hang on to them as rental investments after their offspring have graduated.

The fact that Tilehurst has a railway station which allows connections to Reading in just five minutes, allowing further journeys to be made, is also very appealing for the buy to let market. When there are strong transport options, particularly within easy reach of the heart of London, there is going to be a strong and viable level of demand for rental property.

Tilehurst is more affordable than the Reading average

While there are many aspects of life in Tilehurst that makes investing in the buy to let market seem like a great idea, it is always best to consider the figures involved with the market. Zoopla figures, as of November 2017, suggests that the average value of property in Tilehurst stands at £384,292 and that in the past 12 months, the average price paid for Tilehurst property is £359,073. In comparison with the Reading average, with a value of £434,519 and an average price paid, in the past 12 months of £397,888, Tilehurst represents a more affordable option than the average price in the area.

The RG30 postcode area is the main for Tilehurst and a one bedroom property in this area provides an expected rental yield of 6.74%. Investing in a two bedroom property should provide an expected rental yield of 6.22% and there is a return of 4.9% for a three bedroom property in RG30. Anyone looking at a four or five bedroom property in RG30 should expect a rental yield of 4.93% and 4.4% respectively.

With many investment specialists suggesting that a return of 4% is a strong starting point when considering a return on investment, the figures expected from Tilehurst are appealing. The RG31 postcode area is also appealing to investors. For a one, two or three bedroom property in this area you can expect a return of 5.75%, 6.42% and 4.65% respectively. A four bedroom property provides an expected return of 4.88% and there is an expected return of 6.08% for a five bedroom property.

If you are interested in the Tilehurst rental market or you are looking for property advice from specialists in Reading, get in touch with Patrick Williams and we’ll be happy to help.