As one of the most desirable commuter hotspots, Beaconsfield has long been built on London equity. A third of buyers this year were wealthy city-leavers, provoked by the pandemic to seek more spacious homes. As a result, for the first time this year over half of homes in the area sold for over £1 million, meaning that if Beaconsfield was a London borough, it would be the third most expensive.
Sales
Beaconsfield has an abundanceof detached homes. Around 57%of all properties sold in the areathis year were detached,compared with 31% accrossBuckinghamshire. These homesare often positioned on spaciousplots, which is a key reason whymany London leavers set theirsights on the area.
However, these homes come at apremium. At an average price of£1,734,000, Beaconsfield is the3rd most expensive area topurchase a detached homeoutside of the capital.
Since 2008, average pricesacross Beaconsfield have risen by68%, roughly in line with growth in the wider South East. However, alarge share of this growth hascome in latter years givenBeaconsfield features highly onthe Covid shopping list . Since2019 prices have climbed 22%,outperforming the South East andLondon where prices are up 17%and 13% respectively.
The pent-up demand from Covidand the lack of stock on the booksis accelerating sales with time tosell at the fastest time since 2016,taking 60 days on average. Sellingprime homes so quickly istestament to the strong demandin locally. And it's helped byBeaconsfield's larger proportion ofbuyers who rely on cash rather than mortgage finance.
Lettings
Larger homes have long been the dominant driving force behind rising rents inBeaconsfield. Movers are drawn to the area to look for their forever home. Butwith supply here thin, many households have decided to test the waters beforemaking a commitment.
Due to demand, a comfortably sizedthree-bed home has seen rentalgrowth of 6.1% on last year, climbingto £2,470. Whereas four-beds (thenew family favourite) have seen aneven greater increase at 8.5%,approaching the £3k mark at £2,910.
Over this past year, however, onebedand two-beds have seen thelion’s share of growth. With rentsrising 14.6% and 12.8% respectively.Flexible working has attracted ayounger cohort to the area, pushingthe average rent of a one-bed above £1,000 for the first time.
High property prices mean thatreturns here for a landlord areslightly under the average for theSouth East - 5.1% in Buckinghamshire compared to5.6% across the region. While mostinvestors in the area have madetheir money from longer-termcapital growth, in recent yearsthey’ve been rewarded by risingrents too. This has increased thegross yield in Buckinghamshire up from 4.8% in 2019.
Even so, mortgaged landlords arecoming under increased pressurefrom rising rents. While the cost ofliving crisis will keep a lid on howmuch tenants can afford to pay,landlords will seek to pass on risingcosts to tenants through higherrents. This is why we forecast rentsin the South East to rise 6% in 2023 and 5% in 2024.
