Reading Buy-to-Let Guide

The average rental yield in Reading is around 4.5%, but this figure can differ a fair amount depending on the property’s area.

Rents have experienced a steep climb in Reading over the past few years in response to increased rental demand. The average rent for a property in Reading is £1,556 per month. This is much higher than the UK average of £704, meaning buy-to-let investors can make a hefty gross rental income every month.

Reading is popular with commuters in London because of convenient public transport and road links and a more affordable cost of living than in the capital. Although the Reading lifestyle is generally cheaper than London’s, Reading still ranks as one of the most expensive places in the country to rent.

Buy-to-let investors may also find success investing in student accommodation in Reading. 

The University of Reading is considered a top 30 UK university, and its three campuses are all based around the Town Centre, with over 23,000 students enrolled at the institution.

Regarding key areas for buy-to-let investments, Reading Town Centre is popular with students and gives easy access to London for commuters.

There are also many attractive residential locations to the east. For instance, Earley is convenient for the nearby Thames Valley Business Park, a Reading employment hotspot. Woodley is a large suburb, popular with families and commuters, with its own self-contained community and amenities. Winnersh is convenient for transport links thanks to Winnersh and Winnersh Triangle train stations.

In the north of Reading, on the other side of the River Thames, you can find more expensive areas such as Caversham.

Average Property Prices in Caversham

The average property price in Caversham is £515,566.

Average Rental Yield in Caversham

The average rental yield in Caversham is 3.61%.

Average Property Prices in Woodley

The average property price in Woodley is £462,574.

Average Rental Yields in Woodley

The average rental yield in Woodley is 4.38%

(Averages taken from Rightmove, rental yield average calculated with figures from housesforsaletorent.co.uk)

Regeneration

Ambitious regeneration projects can create job opportunities, help the local population grow, and positively affect capital growth, making them good news for property investors. 

Reading has been attracting many investments, thanks to increasing interest in the area, and several developments have been put forward targeting the Reading Town Centre. For example, two of Reading’s retail parks are being transformed into residential quarters. The Kings Meadow View and Reading Station Hill projects will create over one thousand new homes and revamp these ailing locations. 

The area around Queen Victoria Street and Friar Street, described as the ‘Heart of Reading’, is undergoing an extensive regeneration programme, set for completion by 2050. The Oracle shopping centre will also be transformed into new build apartments, a revitalised retail space, a new cinema and a co-working space.

For details on sustainability and property, take a look at our guide to Liverpool regeneration in 2024.

England’s ‘Silicon Valley’

The strong employment prospects in Reading keep demand for rental properties high and are expected to improve even further, owing to the town’s reputation as a hub for the UK tech sector.

Also known as the UK’s Silicon Valley – due to the high concentration of tech and finance companies in the area – Reading’s M4 Corridor is home to companies such as Cisco, M&G, Hibu and Ericsson, among others.

The Thames Valley Business Park is located on Reading’s eastern outskirts and accommodates over 20 major companies, including Microsoft and Oracle.

A Hotspot for London Commuters

As mentioned, Reading is a popular place for London workers living outside the capital. Living in London often comes with a luxury price tag, so property prices and rents in Reading are generally cheaper, and the cost of living is generally more affordable.

With the opening of the Elizabeth Line in 2022, the commute has become even faster and easier, with average journey times of around 45 minutes and the quickest route taking a mere 23 minutes.

Reading is a traditional commuter town, and this reputation is getting even more substantial as more renters try to escape the high living costs of London investment properties, subsequently driving up demand, rents, and capital value.

We have added some other Regional Buy To Let guides below:

1. Islington Buy to let guide

2. Leicester property investment guide

3. Birkenhead property investment guide

4. Coventry property investment guide

Investing off-plan is one way to get a good deal on a property investment, and it’s growing in popularity as new builds gain more attention from investors.

As an in-demand city, there are many new-build projects in Reading and options for off-plan investment for certain developments.

The downside is that Reading is a particularly expensive area to invest in, even with the discounts that may be provided when investing off-plan. Therefore, it’s worth looking at major Northern cities such as Liverpool and Manchester, where there are many off-plan opportunities but at a more affordable price.