Milton Keynes, a unique town in Buckinghamshire, England, is renowned for its modern urban design, rich history and green spaces. We have crafted this Milton Keynes area guide for property owners and investors considering this area for their next venture. Here, we’ll explore what makes this city a promising and vibrant place for property management, and why you should be expanding your property portfolio here.
Introduction to Milton Keynes
Milton Keynes, often abbreviated as MK, is a town with a vision. Established in the late 1960s, it was designed to alleviate housing congestion in London. Today, it stands as a testament to forward-thinking urban planning, boasting a grid-like layout with extensive greenery.
With a diverse population and a growing community that appreciates the balance of urban and rural living, Milton Keynes has something to offer anyone and everyone.
Why invest in Milton Keynes
So, why should you invest in Milton Keynes? In addition to the current regeneration project taking place, there are lots of other benefits too:
- Strategic location: Milton Keynes is strategically located between London, Birmingham, Oxford, and Cambridge. Its proximity to major cities, combined with excellent transport links including the M1 motorway and the speedy West Coast Main Line, makes it an ideal location for both residential and commercial properties.
- Strong rental market: With a growing population and a steady influx of professionals and families, the demand for rental properties is high. This demand is driven by its vibrant job market, good schools, and quality of life, offering a consistent rental income stream for investors.
- Economic growth and development: Milton Keynes is one of the UK’s fastest-growing cities, with ongoing development and investment in infrastructure, business, and services. This growth fosters a positive environment for property investment and potential capital appreciation.
- Diverse property options: The town offers a wide range of property types, from modern city apartments to family homes, catering to a diverse demographic. This diversity allows you to choose properties that align with your investment strategies and target markets.
- High-quality living environment: Milton Keynes is known for its green spaces, parks, recreational facilities and ever-growing cultural hub, making it an attractive place to live. The quality of life here is a significant draw for tenants and buyers, contributing to the desirability of properties.
- Business hub: The town is home to several national and international companies, leading to a constant demand for both residential and commercial properties. Investment in office spaces, retail units, and industrial properties can be particularly lucrative.
- Educational opportunities: With its universities and colleges, Milton Keynes attracts students and academic professionals, creating opportunities for student housing and rentals.
- Regeneration projects: Ongoing and planned regeneration projects in various parts of Milton Keynes indicate future growth potential, which can lead to an increase in property values over time. We will go into this in more detail below.
- Favourable demographics: The population of Milton Keynes is relatively young and economically active, which supports a dynamic and robust rental and property market.
- Rental yields: As evidenced by the rental yields in different parts of the city, Milton Keynes offers competitive returns on property investments compared to many other parts of the UK.
Regeneration projects
As mentioned above, there are a few regeneration projects in Milton Keynes that will hugely benefit your property portfolio, such as the Lakes Estate, Fullers Slade, and Bradville regeneration.
There is also a regeneration of the housing estate at Lake Bletchley taking place that was signed off in December 2023. This project will include 200 new homes, including a nursery and a community centre.
These regeneration projects bring forth with them ample opportunity, such as more property to invest in and have positive economic results, too.
Things to do in Milton Keynes
Of course, considering the amenities and activities available for any potential tenants to take part in is just as important. There is a unique blend of both urban and rural environments in Milton Keynes, including cultural and outdoor activities, such as:
- Bletchley Park: Visit this historic site where Alan Turing and his team cracked the Enigma code during World War II. It’s not only a journey into the past but also a tribute to the birthplace of modern computing.
- The Centre: MK and Intu Milton Keynes: For shopping enthusiasts, these two shopping centres offer a wide range of stores, from high street favourites to designer brands, along with various dining options.
- Xscape Milton Keynes: A unique leisure destination offering activities like indoor skiing and snowboarding at Snozone, skydiving at iFLY, and movie watching at the Cineworld Cinema.
- Milton Keynes Theatre: Enjoy a variety of performances, from West End musicals to ballet and opera. The theatre offers a rich cultural experience with its diverse programme.
- Willen Lake: Ideal for outdoor enthusiasts, this park offers activities such as wakeboarding, paddleboarding, and windsurfing. It’s also a lovely spot for a leisurely walk or a family picnic.
- Gulliver’s Land: A family theme park aimed at younger children, with rides, shows, and attractions. It’s a great place for a fun family day out.
- Milton Keynes Museum: Discover the history of Milton Keynes and the surrounding area. The museum is interactive and engaging for all ages.
- The National Bowl: A renowned outdoor entertainment venue that hosts concerts and events.
- Campbell Park: An expansive park offering beautiful landscapes, art installations, and walking paths. It’s the perfect place to relax and enjoy nature.
- Woburn Safari Park: Located just outside Milton Keynes, this drive-through safari park lets you get up close with exotic animals like lions, tigers, and elephants.
- The Stables: A popular live music venue in Wavendon that offers an intimate setting to enjoy a variety of musical genres.
- Woburn Abbey and Gardens: Here, you can explore the historic house and its beautiful gardens. It’s a great way to spend a day learning about the local history and enjoying the outdoors.
- Hula Animal Rescue: For animal lovers, a visit to this animal sanctuary can be a rewarding experience. They offer open days for visitors to meet and learn about rescued animals.
- MK Gallery: Art enthusiasts will enjoy this contemporary art gallery, which hosts a range of exhibitions, films, and events.
- Skydiving at Twinwoods Adventure: For the thrill-seekers, try indoor skydiving at Twinwoods Adventure, just a short drive from Milton Keynes.
Education
Ofsted, the official body for inspecting schools in England has rated 30 primary and secondary schools as ‘outstanding’ – the highest grade a school can attain. As well as this, there are over 60 other schools that have been rated as ‘good’. Any potential tenants who are looking to start a family in Milton Keynes will be spoiled for choice with the variety of schools available to them.
For families interested in private education, Milton Keynes offers a selection of independent schools. These schools provide a range of options, including day and boarding facilities, catering to different preferences and needs of families.
Also, early childhood education in Milton Keynes is known to be of good quality, with five nurseries receiving an ‘outstanding’ rating from Ofsted, too. These top-rated nurseries are conveniently located, both in the central parts of the city and in its surrounding neighbourhoods, making it easier for parents to find high-quality childcare options close to their homes or workplaces.
For those looking into attending university, Milton Keynes hosts one of the University of Bedfordshire’s campuses which is situated close to the town centre. This adds to the lucrativeness of investing in the city because there are ample opportunities for student housing investments.
Transport and accessibility
Milton Keynes is strategically located with excellent transport links, making it attractive for businesses and residents. The M1 motorway runs nearby, providing direct access to London and the North. Milton Keynes Central Railway Station is a major hub on the West Coast Main Line with frequent services to London, Birmingham, and Manchester. This connectivity boosts property demand, especially for those commuting to larger cities for work purposes.
Property market overview
Milton Keynes presents a dynamic property market, with a mix of residential, commercial, and retail properties. The residential sector is diverse, offering everything from modern apartments to traditional family homes.
The commercial sector is thriving too, with numerous business parks and a central business district that attracts a range of businesses. Let’s take a closer look at this.
Residential properties
You may want to consider investing in residential properties, if you have not yet done so, to expand your property portfolio.
There are a variety of residential properties in Milton Keynes, including family homes situated in areas such as Broughton, Middleton and Walton. These properties are spacious and close to good schools.
Equally, you will find apartments and flats situated in central Milton Keynes and in areas such as Wolverton. Areas like these are naturally more popular amongst young professionals and students, offering modern living spaces.
Commercial properties
If you are looking to invest in commercial properties, Milton Keynes is arguably one of the best cities to do so in. With Centre:MK being one of the largest shopping centres in the UK, you will find an array of investment opportunities.
Also, the business district and areas like Linford Wood Business Park provide excellent opportunities for office rentals and places like Denbigh West cater to light industrial and logistics businesses.
The investment opportunities in Milton Keynes are rich and lucrative no matter your investment type.
Rental yield
Another important aspect to take into consideration when investing in property is the rental yield that the property will bring you. The higher the rental yield, the more lucrative the investment will be.
What is rental yield?
Rental yield is a measure used to evaluate the profitability of a rental property. It is a key metric for investors and property managers, as it helps to assess the return on investment (ROI) of a property compared to its market value or purchase price.
There are two main types of rental yields: gross rental yield and net rental yield.
Gross rental yield
The gross rental yield is the simplest form of calculation. It doesn’t take into account any expenses related to the property. The formula to calculate gross rental yield is the annual rental income divided by the value of the property, then multiplied by 100.
For example, if a property is purchased for £200,000 and rented out for £1,000 per month, the annual rental income is £12,000. The gross rental yield would be 12,000 divided by 200,000, then multiplied by 100. This would give you a gross rental yield of 6%.
Net rental yield
On the other hand, the net rental yield provides a more accurate picture as it takes into account the operational expenses associated with the property. These expenses can include management fees, maintenance, insurance, property taxes, and other costs.
The net rental yield is worked out by taking the annual expenses away from the annual rental income, dividing it by the value of the property and then multiplying it by 100.
For example, using the same property valued at £200,000 with an annual rental income of £12,000. If the annual expenses (maintenance, taxes, etc.) total £2,000, the net rental yield would be calculated as follows:
12,000 – 2,000, divided by 200,000 and multiplied by 100, giving you a net rental yield of 5%.
The best areas to invest in property in Milton Keynes
Let’s now take a look at a snapshot of the best areas in Milton Keynes to invest in property and what the different rental yields are for these areas from the highest rental yield to the lowest rental yield.
- Broughton/Broughton Gate: 5.9% yield, £305,620 average price.
- Newport Pagnell: 5.2% yield, £321,172 average price.
- Monkston: 5.3% yield, £289,451 average price.
- Pennyland: 4.7% yield, £329,458 average price.
- Middleton: 4.5% yield, £427,678 average price.
- Kents Hill: 4.5% yield, £340,353 average price.
- Two Mile Ash: 4.6% yield, £358,206 average price.
- Giffard Park: 4.6% yield, £351,279 average price.
- Walnut Tree: 4.2% rental yield, £356,734 average house price.
- Willen Park: 4% yield, £293,192 average price.
Due to the nature of Milton Keynes’ rental market, a rental yield of between 5-6% is considered great; it is safe to say that there will always be a demand for property in the area.
At Toller Property Group, we are experts in all things property investment and property management. With our market knowledge, advanced technology and commitment to supporting you on your property investment journey, we provide advice that is suitable to your needs.
Get in touch with us if you are looking to expand your property portfolio today!