From royal castles to iconic cobbled streets, Guildford is a riverside town in South East England with a rich and vibrant history.
But the quaint Surrey town has more to offer than history and heritage.
Boasting attractive yields and a strong rental market, Guildford has seen a surge of interest from property investors in recent years.
In this article, we delve into the world of property investments in Guildford and explore what the town has to offer investors.
The benefits of property investment in Guildford
The town’s geographic location and transport links are what make Guildford such an attractive option for real estate investors.
Heathrow, Gatwick and other major cities across the UK are easy to reach from Guildford, thanks to the excellent transport links.
Guildford is also just 30 miles from London, meaning a quick commute to the capital.
This makes the town a popular choice for those looking for a less hectic lifestyle or those unable to keep up with the soaring housing costs in the capital.
As a result, there is a strong demand for high-quality accommodation in Guildford. Investors can take advantage of this without paying the premium London property prices.
Looking at the sold prices, we can see how much more accessible the Surrey town is for investors.
According to Zoopla, the average sold price for a London property over the last 12 months was just under £732,000. Over the same period, sold prices in Guildford were significantly lower, averaging just shy of £584,000.
Capital growth in Guildford
Capital growth, the increase in value over time, is one of the main factors real estate investors need to consider.
Over the 12 months to February 2023, UK average house prices increased by 5.5%, according to the latest data from the Office for National Statistics (ONS). The South East slightly outpaced national growth in the same period, increasing by 5.8%.
And while house price growth in Guildford hasn’t kept pace with the region, it has outperformed neighbouring London in terms of capital growth for investors.
Data from the UK House Price Index shows that in the 12 months to February 2023, property prices in Guildford increased by 3.5%. Since 2019, prices have grown by 16.5%.
Meanwhile, prices in the capital rose 2.9% over the last 12 months and 13.25% since 2019.
Separate data from Zoopla shows there is also a strong demand for homes in Guildford. Properties in the town take roughly 37 days to sell once they come onto the market compared to the average time of 60 days.
Rental yields and demand in Guildford
There is a strong demand for high-quality rental accommodation in Guildford.
This is due to the many appealing aspects of the town and its proximity to London, making it a popular place to live for professionals. The University of Surrey is also based there and has a large student population of over 14,000.
And while Guildford provides landlords with a steady stream of tenants, it also offers attractive rental yields.
Based on Land Registry data, the South East has an average rental yield of 3.72%.
However, according to Savills Prime Lettings Index, the annual rental growth across Guildford has increased by 5.3% due to demand. Rents are also up 13.3% compared to their March 2020 levels.
Property investments with Holborn
The UK property market has experienced its fair share of ups and downs over the last few years.
However, one thing that has remained consistent is its ability to weather the storm and continue to produce returns for investors in the long run.
Savills forecast a 6.2% increase in the capital value of UK property between 2023 and 2027. The property experts also predict an 18.3% increase in rental values over the same period.
Whether you are looking to invest in your first property or add to your portfolio, we can help.
Holborn works with some of the UK’s leading real estate developers to bring clients exclusive off-plan and completed property investment opportunities.
Start your property investment journey with Holborn. Book a free, no-obligation meeting today and learn how we can help you.