'A dynamic local economy and more flexible working patterns has produced a vibrant property market throught the region,' says Richard Thomas of Knight Frank's southern residential development team. The housing boom in what is known as the UK's 'Silicon Valley' has had significant spin-offs in established centres such as Oxford and Newbury as well as dramatically improving less fashionable towns like Reading and Swindon.
'Despite the jitters running through the IT market the residential investment market in Reading remains particularly strong with people scrambling to rent and buy,' says Thomas. A high level of staff relocations have taken place for jobs at Prudential, British Gas and Thames Water, which has further boosted demand.
In recent years, house prices in Reading have jumped by up to 25% per annum although Knight Frank expects this figure to slow slightly with somewhere between 10% and 20% over the next 12 months.
However, in new schemes, such as Dellwood Park in Caversham Heights, the increase looks set to be higher. Apartments on the scheme, which is being developed by local housebuilder TA Fisher, are currently fetching £375 ($536) per sf and the houses £260 ($372) per sf.
Thomas notes, 'The major centres across the region are now emulating on a smaller scale what has happened in larger cities across the UK in terms of city living. People want to be close to their work but also have amenities on their doorstep, which is why we are seeing this 24/7 work, rest and play environment stimulate so much development activity.'
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