READING IS HOT PROPERTY

by Cherry Reynard
Financial journalist for the FT Group,
Telegraph and Investors Chronicle

UK property has been a lucrative investment for a generation, but there are signs that investors will have to be smarter about where they put their capital to capture higher returns in future. Some areas of the property market are wobbling: investors need to ensure they pick a spot with strong local supply-and-demand dynamics.

But where to look? London has often been the default choice for property investors but now looks vulnerable to the outflow of international buyers. At the same time, affordability is still low and the Capital offers fewer opportunities to generate real capital growth or income. However, there are exciting opportunities elsewhere. One trend likely to persist is the dominance of technology.
Technology continues to disrupt industries as diverse as car-making, financial services and advertising.

Investors would be well-advised to look at which regions are geared into the technology landscape to find the UK's own Palo Alto - that exclusive part of California's Silicon Valley where prices have doubled over the past decade(1).

According to the Tech Nation 2017 report (2), Reading has the highest digital turnover outside London, at £12.5bn, with more than 40,000 digital jobs based in the town. It had the highest digital business concentration in the country - 4x that of Cambridge. This is shoring up demand for property in the town.

Developments such as Huntley Wharf are at the heart of a town transforming.
Property investors can no longer rely on a rising tide; they need to be savvier in where they choose to invest. Following the structural growth in technology, high-tech hubs such as Reading should drive investors to long-term growth opportunities.

Source:
1. https://www.propertyshark.com/Real-Estate-Reports/2017/11/02/heres-home-prices-increased-silicon-valley-housing-market/
2. https://35z8e83m1ih83drye280o9d1-wpengine.netdna-ssl.com/wp-content/uploads/2018/04/Tech_City_2017_report_full_web.pdf