5 reasons savvy investors are serious about Southall property
Before investing in property, it pays to measure the potential for your investment. Who are your target tenants? How much demand is there for rental properties? What does the future hold?
In this article, we examine some of Southall’s population statistics – numbers that confirm why savvy property investors are serious about Southall property.
1. Southall – a young and well-educated population
Everyone knows that the population of the UK is ageing. We are continually told that the public finances will be stretched by the increasing numbers of older people, not working and costing more in housing and healthcare costs. By 2050, the ONS forecasts that one in four of the national population will be over 65 years old.
The average age of the UK’s population has increased by two years to 40 since the late 1990s. In comparison, the average age in Southall is just 35.4 years. Almost 70% of the population in Southall is under the age of 44, and the median age is 33. With almost 50% of the population under 30, there is likely to be a lot of people seeking somewhere to live for many years to come.
Southall’s population is also more highly educated than the national averages. According to the 2011 UK Census, Southall has a lower percentage of residents with one or no GCSEs at grade D or below than the national average.
At the other end of the scale, Southall has a higher-than-national-average of its population with qualifications at NVQ level 4 an above. Not by a small margin, either. 37% of Southall’s residents fall into this highly-educated category, compared with just 27.4% nationally.
2. Southall – socially affluent and well paid
The residents of Southall are more socially affluent than England’s average when measured by social grade. This is a classification made according to occupation, with households classified by the job of the main income earner. In Southall, we see the following social grade demographic:
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Those who are employed in higher and intermediate management positions, administrative, or professional roles tend to receive higher salaries. This is reflected in Southall, where the average weekly wage of residents is £582. While this is lower than the London average, it is higher than the national average.
When Crossrail services start running here, the major employment hubs in London will be within 30 minutes’ travel time. It’s likely that earnings here will move toward the London average as Southall becomes increasingly attractive as a commuter town.
3. Renting is a lifestyle choice in Southall
Here’s a statistic that makes long-term property investors in Southall very happy – people love renting here. The proportion of households in social rented accommodation (either council owned or housing association owned) is on par with the national average (18.1% vs. 17.7% respectively).
In the private rented sector, the story is very different. In Southall, 26.4% of households rent from buy-to-let landlords. Nationally, this figure is just 15.4%. With PRS renting forecast to increase in popularity in the coming years, there is plenty of potential for investors in Southall property to benefit from the lifestyle choice to rent in Southall – especially with such a young population coming through.
4. The population is growing in Southall
Southall is in the London borough of Ealing. The ONS has forecast that the borough’s population will increase by more than 13% by 2036, to around 394,000. Ealing is acting to provide housing for its growing population. Regeneration and development are high on the list of its priorities, and Southall heads its list of residential developments.
One of London’s largest and most complex regeneration projects is at Southall Waterside. Here, Berkeley Group will deliver 3,750 new homes over a 25-year timeframe. It’s an exciting project, and unique in its design.
At each stage, it will deliver a fully sustainable community that benefits from new parks, gardens, cycle paths, retail, cafés and bars. There will be a new primary school, too. Every home will be within a five-minute cycle ride to a station. It’s a dream location for young professionals and families.
5. Property is affordable in Southall, but prices are already rising
The average price of a property in Southall is approximately 38% below London’s average price. This makes it one of the most affordable towns in London. However, property prices here are already rising.
According to estate agency Foxtons, the average sold price in Southall increased by 12.8% in 2018, from £352,030 to £397,354. In comprising this data, Foxtons measured the average of sold prices as registered with the UK Land Registry.
As for rental income, according to home.co.uk the average rental price here is £1,393 per month. Based upon the average sold price, this equates to an average rental yield of 4.2%.
Are you a savvy investor?
The best property investors buy a property where demand is likely to remain strong and grow. Southall has all the population characteristics to support capital growth and sustainable rental yields. Crossrail is likely to make Southall even more attractive to young professionals and families.
A socially affluent and young population appears to be choosing to rent as a lifestyle in Southall. Increasingly, tenants will be hunting out properties that offer modern accommodation with lifestyle options on the doorstep. People want to benefit from a good work/life balance. Developments like Southall Waterside provide exactly this.
For more information about property investment opportunities in Southall, contact the team at Gladfish today.
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