Over the last few years we have seen Reading establish itself as a location to watch within the UK residential market. Known for its excellent connectivity to the capital – which has continued to be enhanced thanks to the opening of the Elizabeth line – the town’s identity has evolved and it has become an attractive location in its own right.

Indeed, earlier this year, the EY Regional Economic Forecast predicted it to be the fastest growing location in the country between 2024 and 2026, suggesting that long-sought city credentials may not be required after all. Popular opinion has followed suit, with the Sunday Times naming the town in its list of best places to live 2023.

Its population is expected to reach over 165,000 by 2030, and new Savills research highlights that its popularity as a place to live is increasingly prominent among the younger generation. Indeed, the 15-24 age band is projected to become the largest population group within the town by 2033. Much of this growth is expected to be driven by those in their early twenties, reflecting the town’s strength in higher education and as a destination for graduate employment in key sectors including science, tech, communications, and more recently, TV and film production.

Residential stock is very much geared towards this generation of in-movers, with apartment schemes dominating the new build market and accounting for 89 per cent of sales since 2020. There is also a strong bias towards ‘build to rent’ – 1,150 homes within the residential pipeline will be delivered as purpose-built rental units, 800 of which are already under construction, including the landmark Station Hill development.

The pace of regeneration is by no means limited to the business and residential sectors. New openings such as Reading Biscuit Factory and the Thames Lido have boosted the town’s already strong cultural and leisure scene.

This momentum has driven high demand for homes in Reading – with downsizers also accounting for a significant proportion of the market – which is, of course, having a knock-on effect on prices in both the rental and sales sectors. When it comes to affordability, while the town still has the edge over many other south east hotspots, and certainly when compared to the capital, the gap is not as compelling as it once was – with the latest average house price to income ratio reaching a high of 9.41.

The opening of Green Park Station, situated on the Reading to Basingstoke line, in May 2023 is likely to boost demand further, especially in the south west of the town where it is located. And with rental demand far outstripping supply across Reading, we anticipate competition in the lettings market will continue for some time to come.

Further information

Contact Alexa Peters or Gordon Hood

In Focus and On Foot – expert views on local neighbourhoods