Why purchase a property in Crewe?
Updated: Oct 23
If you are into property investment, you may have heard Crewe get a mention from property tycoons as a great up and coming investment area. We’ve spoken to a lot of people from the area who have laughed at this suggestion and have been used to Crewe being a neglected town, with a good train station, but ultimately not a lot going on. If you are not from the area, you are likely wondering why everyone in the property industry is raving about the railway town of Crewe.
1. Capital appreciation potential
Perhaps the biggest reason why Crewe is becoming increasingly popular amongst property investors, is the potential for capital appreciation. One of the main drivers for this potential is the Crewe HS2 hub station, which is due to be completed between 2029-2033. This will serve as a major connection point from Crewe to London and other major cities in future. According to the Cheshire East Council submission for Crewe report, Manchester, Birmingham, and Liverpool will all be less than a 30-minute commute via HS2, and London will be accessible in 55 minutes. This accessibility will increase demand for housing in Crewe drastically compared with other UK areas, and in turn, is very likely to create greater capital appreciation for properties in Crewe, in comparison with other areas.
In recent years, Crewe has undergone/ is still undergoing major regeneration projects. One example is the Crewe town centre regeneration programme.
When Crewe was recognised as a location for a HS2 hub station, Cheshire East Council saw massive opportunity for economic growth in the area and began the regeneration scheme. This began with building Crewe Lifestyle Centre and Crewe Engineering & Technical University Technical College.
In 2017, the council approved plans for a further £15 million to support further developments in the town centre regeneration scheme. This is aligned to £10 million Local Growth Fund grant through Cheshire & Warrington LEP and approximately £25 million private sector investment.
In May 2021, the council reopened the Crewe Market Hall after undergoing a £3 million development. The venue is now filled with very popular food retailers, pop up stores and bars. This venue holds regular events and is very popular amongst residents of Crewe.
The Royal Arcade Development is also underway, in which a brand-new high-quality bus station, and a multi storey car park are being built to further improve accessibility to Crewe town centre.
All this development is further increasing the demand for housing in Crewe amongst renters and buyers, which is leading to great capital appreciation for property investors.
2. Strong rental market
According to Zoopla, the demand for housing in Crewe is amongst the highest in the UK with a rate of 47.3%. In a world of rising mortgage interest rates, increasing house prices, and a cost-of-living crisis, Crewe is attracting lots of homeowners and renters. With Crewe having such good transport links to major cities such as Manchester, Birmingham, and London, buyers and renters working in these areas, who cannot afford the local prices, are seeking an affordable place to live, with good transport links to their workplace.
This increase in demand amplifies the projected impact that the HS2 development will have on rental demand and property prices in Crewe in future years. Renters will become increasingly aware that they are able to live in London, and earn higher salaries, whilst being to commute in under 1 hour from an area with much lower rental prices. This is also increasing the quality of tenant experienced by landlords in Crewe by bringing more working professionals to the area.
3. Affordable housing
According to Rightmove, the average house price in Crewe is £203,859. By comparison the average house price in the UK June 2023 was £372,812. 2 Bed Terraced houses in certain areas of Crewe can be picked up for around £90-110k at the time of writing this article, which is significantly lower than the average UK house price. Low prices mean lower mortgage rates, higher yields, and ultimately more profit for property investors.
4. Variety of strategies for investors
Crewe is great for property investors, because there are a range of strategies one can employ to make profit in property, giving them the ability to diversity their portfolio, whilst maintaining their local network of builders, tradesman, brokers, surveyors, sourcers, letting agents etc. which are tough to build up in any given area.
One strategy that works well in Crewe is Serviced Accommodation; this is becoming increasingly popular with our clients due to higher rental income, more flexibility, tax benefits and much more. We have written a whole article about this at:
Serviced Accommodation is a newly popular strategy in Crewe due to massive contractor demand increasing nightly rates and occupancy for SA landlords. HS2, Crewe town centre regeneration, Bentley Motors, Leighton Hospital and Apollo Buckingham Health Science campus, are just a few of the reasons contractors, junior doctors and working professionals are desperate for short term accommodation in Crewe.
HMO is also a strategy that can work in Crewe because there is an abundance of professionals working in the area, and an abundance of those who are working elsewhere but commuting from Crewe due to the low house prices. Many people believe that the HMO market has collapsed in Crewe, because in 2017 Manchester Metropolitan University confirmed withdrawal from the Crewe Campus. This left a large hole in the HMO market as a recently thriving demand from students fell from beneath the feet of HMO landlords. However, in recent years, the campus has been converted to Apollo Buckingham health science campus and is occupied with student doctors from all over the world. Whilst some HMO landlords still struggle, this influx has led to increased demand in the area, and a slight revival of HMO in Crewe as a high yielding rental strategy.
For all the reasons described above in section 2, the buy to let market is also thriving in Crewe. With affordable house prices, meaning lower mortgage rates, and higher yields compared with most areas, Crewe can certainly produce profitable buy to let opportunities. With good marketing from the right management agent, strong demand from potential tenants should allow investors to get tenants in place quickly once the property is refurbished.
5. General appeals
Aside from the points mentioned above, Crewe is located in Cheshire, which is seen as a desirable place to live by many UK residents. Residents of Crewe are surrounded by countryside, and rural villages rich in restaurants, bars, and plenty of cultural events. In addition to this, Crewe is also home to large employers such as Bentley Motors, AO, Radius Payment Solutions, Bombardier, Network Rail…. the list goes on and extends to several more railway-based companies, hospitals, and industrial businesses. These employers account for a large percentage of jobs in Crewe and give residents fantastic opportunities for personal growth in a range of industries. For property investors, the general appeal of an area is a very important factor in determining occupancy rates, rental demand, and capital appreciation. All of which shape the returns experienced by the investor.
Crewe is becoming increasingly popular with property investors due to years of investment in its infrastructure by the council, and future plans for growth which bring huge potential for capital appreciation and have brought many businesses to Crewe in recent years. This, and other factors have created a great quality of life for tenants. This, added to affordable prices, and huge rental demand, which mean great yields and high occupancy for property investors, has got a lot of people in property talking about the railway town in Cheshire. If you are looking to make an investment into property in Crewe, get in touch today on 01270 385043 or drop us an email at firstname.lastname@example.org