As a landlord, you’ll want to know you’re operating in a thriving rental market where tenant demand is high, rental income steady and there is the opportunity to achieve strong yields and capital gains over time.
Here, we explore the current state of the rental market in the popular Essex commuter town of Basildon, to give landlords an insight into why investing here is a wise move.
An ideal base for London commuters
Very often, in an attempt to escape the prohibitively expensive London rental market, young professionals head outwards – to more affordable towns in counties on the outskirts of the capital – to widen their options.
Basildon, with rental prices beginning at £800 per month for a one-bed flat compared to an average of over £3,000 in Central London, is one place that benefits from the exodus from the capital and those looking for affordable living within easy reach of their workplace.
The town has excellent connections to London – with a train from Basildon station to London Fenchurch Street taking just 33 minutes. The season ticket prices are also more affordable than other commuter locations in the Home Counties, with an annual pass from Basildon to London Terminals setting commuters back only £2,940 or £73.50 a week.
What’s more, Basildon is around a 20-minute drive from Brentwood and Shenfield, the last two stops on the eastern section of the Elizabeth Line (Crossrail 1), which will provide fast services into Central London and beyond when it is fully operational.
While the commute costs for London commuters will be higher, this is offset by lower rental costs and a better quality of life in a quieter, more relaxed, more family-friendly environment.
We’ve long heard about the ripple effect when it comes to buyers – with people moving out of the pricey capital for more affordable options elsewhere – but it’s also the case for tenants seeking the best of both worlds: a job in the city but a cheaper rental home a reasonable distance away, which is potentially better suited towards family life and a less stressful way of living.
What does the Basildon market currently look like?
According to Home.co.uk, properties for rent in the price bracket between £500-£1,000 pcm and £1,000-£2,000 pcm are by far the most commonplace, while two and three bedroom properties are most in demand, closely followed by one-beds.
The average rent for a one-bed home, according to the website, is just over £740, while for two-beds it’s £974 pcm, shifting up to just over £1,100 for three-beds.
When it comes to the type of property rentals on offer in Basildon, it’s almost exclusively flats and houses, with only a very small number people renting by room. This suggests, of course, that young professional couples, families and older renters (an increasing phenomenon in recent years) make up a much bigger part of Basildon’s rental demographic than house-sharers or single renters.
A good number of family renters
The above, which highlights the popularity of three-bedroom rental homes, suggests that Basildon has a healthy number of family tenants – perhaps not surprising when you consider that rental homes in commuter towns (quieter, lots of events aimed at children, plenty of green space, a good range of local schools, strong local amenities, etc) are likely to be more appealing than homes in busy, crowded cities.
Last year, we outlined where the best family homes to rent in Basildon can be found, as well as looking at why Basildon is a popular destination for family renters. As well as affordability, a quieter pace of life and good proximity to London, there are a number of activities aimed at children, for example Partyman World of Play and Barleylands Farm Park and Craft, as well as Festival Leisure Park (cinema and bowling), Hollywood Bowl Basildon and Basildon Sporting Village Climbing Wall.
Renters can benefit from large private gardens (ideal in the summer for kids to burn off all that excess energy), affordable rental prices and spacious rooms, while landlords can take advantage of increasing demand from a demographic who may be more likely to stay for the long-term and in more secure employment than transient young professionals.
Here at Balgores Property Group, we have some of the best available rental properties in Basildon. Currently we have 42 properties on our books, ranging from one-bed homes for £595 pcm to four-bed properties for £1550 pcm, with many having their let agreed in a timely fashion. We manage everything from new-build homes to older period properties.
For more information on renting a home in the area, please get in touch with our Balgores Property Group Basildon branch on 01268 271110.
We are conveniently located for the town centre in Southernhay, while our spacious open-plan office offers a professional and relaxed environment.
You can find out for yourself why Balgores is leading the way in property sales and lettings in Basildon by booking a free no obligation valuation today.