New research from Savills shows Reading is well positioned for growth

New research from real estate advisor Savills highlights Reading as a key location for growth over the coming years.

However, the analysis indicates that a shortage of development land could inhibit its longer-term potential – particularly given the pent-up demand for family housing.
Despite not realising its ambition to achieve city status, Reading is a location that is poised for growth, says the firm.

Driven by its strength in the professional, scientific, technical, information and communication sectors, the EY Regional Economic forecast predicts it to be the fastest-growing location in the country between 2024 and 2026.

Its population is expected to reach over 165,000 by 2030, with the 15-24 age band projected to become the largest group by 2023, accounting for more than 17 per cent of the population.

Savills notes that the office market in Reading has seen a supply / demand imbalance for high-quality space, which has already started to have upward pressure on rents.

Station Hill (pictured), located in the centre of Reading, has been speculatively developed by Lincoln Property Company and MGT Investment Management and is expected to set a new record high for the South East office market, which underlines the flight to quality drive from occupiers.

Steve Lang, commercial research director, said: “Looking forward, Reading has a real opportunity to capitalise on the continued growth of the science sector, particularly in terms of expanding its attraction to those occupiers requiring R&D facilities, following the chronic lack of space in the London-Oxford-Cambridge ‘golden triangle’.

“Its presence within the film and television sector is also continuing to grow, highlighted by the cluster of new film studios opening in or close to the town.

“The partnership with the University of Reading and Wokingham Borough Council will boost employment and engagement opportunities, which will strengthen the future talent pool for the sector in the area.

“Our research reflects what the teams in the Savills Reading office are experiencing on the ground.’ concluded Phil Brown, head of Savills Reading:

“Whilst accommodating development will inevitably pose a number of challenges, the review of the Local Plan just commenced is timely, allowing policies and allocations to be updated so that future development needs can be met.”