Local market report and housing update
Winter 2022/23
Snapshot & Location
The market town of Newbury has a strong architectural Georgian history, reflected in many of its heritage 17th- and 18th- century listed town centre buildings. The Kennet and Avon canal runs through the middle of Newbury, adding to its quaint nature. It lies on the edge of the Berkshire Downs, an Area of Outstanding Natural Beauty and its situation close to the M4 corridor has created a strong economic base for the town.
Location Map
Local demographics & economic trends
Newbury is the administrative centre of the wider West Berkshire Council area, in which it sits and is the largest centre. West Berkshire’s wider population has been slowly rising over the last twenty years, moving from just under 144,000 in 2001 to 158,500 currently. This reflects a rise of around 10%. Newbury meanwhile hosts around 42,000 of those residents. Looking ahead, the resident population of the council area is expected to slow over the coming years, declining by around 1% over the next decade.
The current estimated employment level of West Berkshire is very high at 82.9%, compared with a national average of 75.5%. Conversely, the unemployment rate is also very low at 2.7%, while the area immediately around Newbury has an even lower estimated rate of unemployment at 2.2%. The affluence of the area is also reflected in the average income of those who live there: in 2021 the average annual income in West.
Connectivity
Newbury is well connected both by local motorway and the rail network. The major M4 motorway acts as a corridor across the west of the country from London to Bristol and beyond and it passes just 3 miles north of Newbury. The A34 bypass also provides easy north – south access between Oxford, Southampton and the M4, without passing through the city centre. There are two rail stations in Newbury providing direct access to London Paddington, Reading and other parts west to Devon and Cornwall.
The local Housing Market
Sales Market
Average house prices by property type and location
Newbury (RG14)
West Berkshire
England and Wales
Detached
Semi-detached
Terraced
Flat
Overall Average
£646,920
£433,641
£345,602
£235,291
£405,659
£692,302
£412,655
£327,311
£213,114
£410,482
£488,076
£298,211
£253,644
£253,542
£311,074
Source: HM Land Registry (West Berkshire and England and Wales data: October 2022. RG14 as at Q3 2022)
"the whole area has seen demand increase and prices rise significantly over the last three years, particularly compared with the previous three years"
Chart
Chart
Rental Market
The latest data from the Office for National Statistics and the Valuation Office (Q1 2022) notes that average rents in the wider West Berkshire area are averaging around £1,028
per calendar month (pcm) with the upper quartile reaching an average of £1,175 pcm. Rents in the area are typically very much in line with the wider South East region where rents average around £1,040 pcm.
Newbury
Architecturally, the city boasts many fine examples of Georgian architecture homes, both in the city and lying just outside the city centre. There is a good mix of large, semi-detached and detached period homes while the area also benefits from a good selection of newly built properties, including many fine examples just by the Newbury Racecourse.
The local economy in Newbury is strongly related to the M4 corridor and its associated commercial centres and business parks and estates. There is a strong research, industrial and logistical economic base in the areas around Newbury and nearby Reading and Slough. Newbury is also home to the UK headquarters of Vodafone, which is the town’s largest employer.
Berkshire was estimated to be £47,228, nearly 25% above the wider national average of £38,000.
Of those employed in West Berkshire, 59% are employed in occupations such as Managers, Directors, Professional occupations and Associates. This compares with a national average of 51%. The area is known as having a high level of technology, information and digital businesses and corporations and this is reflected in the fact that over 14% of all those employed in the area are categorised as being in ‘Information and Communication’ related jobs. Compare this with a national average of just 4% and it is clear that this is an area of the country with a strong IT-related economy.
Of the 66,155 households in West Berkshire, over 71% are owner occupiers, with just 13% being in the private rented sector. This high level of owner occupation is well above the national average of 63% and is indicative of the fact that this aspirational area is home to many young and mature families alike as well as professionals and couples who aim to make this area their forever home, if they have not already done so.
Around Newbury, the area is home to dozens of well-established primary and secondary educational institutions of all types including independent, state, faith, and preparatory. Location based on nearby top-performing primary and secondary schools is often a very strong factor in deciding where to move and locate, with proximity to the best schools strongly correlated to local average house prices. Research has shown that homes located near top-performing schools can add anywhere from £30,000 - £60,000 to home values. There are 15 primary schools and three secondary schools within two miles around the centre of Newbury (both state and faith schools), of which one Ofsted registered ‘Outstanding’.
Across Newbury and the RG14 postcode district, average property prices are £405,659, only slightly below the wider West Berkshire average of £410,482. This ‘price premium’ in West Berkshire however is not consistent across all property types with flats and terraced properties typically more expensive in Newbury than the wider local authority average. What’s more, over the last 12 months, Newbury has seen exceptionally high house price growth reaching over 16% whereas West Berkshire property prices have risen by an average of 7% over the same period. Having said that, the whole area has seen demand increase and prices rise significantly over the last three years, particularly compared with the previous three years. Between 2017 and 2020 house prices in West Berkshire increased by just 2% whereas since early 2020 the area has seen prices rise by an average of 18%.
The Local Housing Market
Average house price
Average house price growth
Average rent
(£ per calendar month)
Annual rental growth
Gross Yield
£405,659
16.1%
11%
£1,010
3.2%
Sources: HM Land Registry, ONS, REalyse
More timely data (end 2022) finds that average rents in the more localised area of Newbury are around £1,010 pcm (REalyse). This reflects strong growth over the last year which has seen rents move from an average of around £900 pcm prior to the pandemic, equating to an annual rise of 11% in the area. Looking ahead, we expect that rents will continue to increase amid a chronic shortage of available stock and rising tenant demand. We anticipate modest growth of between 3% and 5% over the coming 12 months.
Sources used: Carter Jonas Research, Experian, Google maps, HM Land Registry, Office for National Statistics, REalyse, Rightmove
Notes: REalyse rental data 12-month rolling average
Get in touch
For further information, please get in touch with one of our local experts
The chart below shows just how strong demand and levels of transactions were across West Berkshire over the ‘pandemic period’ and during the stamp duty rate cut throughout 2020 and 2021. During 2021 alone, average monthly sales were over 118% above their long-term average in the area. Although sales have moderated since that period, this level of demand naturally put upward pressure squarely on house prices over that timeframe.
Looking ahead, we expect that while overall sales levels will remain below-average for much of 2023, by the end of the year, when mortgage rate levels have stabilised, they will rebound to their longer-run averages. As such we expect prices to fall by around 3% throughout the course of the year, before growing again in 2025.
Notes: Average house prices: RG14 postcode district. Rental rates areas: five-mile
radius from centre. Projected house price growth, incomes and demographics
data, areas: Respective local authority
2032 forecast
population
(number)
157,362
Ten-year forecast population
(% change)
-1%
Proportion of population who are owner occupiers
71%
Proportion of
population who are private renters
13%
Average annual
income
(2022, provisional)
£43,120
Five-year projected house price growth (cumulative)
3.1%
Email me
01635 263010
Sales
Rupert Reeves
Email me
01635 263024
Lettings
Fiona Minx
