Guildford has long been one of Surrey’s most popular locations for property investors in the UK. However, with property prices remaining significantly higher than the national average, many landlords and investors are asking whether Guildford still offers good value as well as long-term investment potential.
In this article, we’ll take a closer look at Guildford’s property market, consider the types of rental properties currently in demand and explore the tenant opportunities available to help you decide whether Guildford remains a worthwhile place to invest.
What to Consider Before Investing in Property in Guildford
Property Prices and Trends
Understanding the average house price in Guildford and analysing previous years’ data can help investors better understand local housing trends and evaluate potential returns. The property market in Guildford is competitive, with local pricing data consistently placing the average house price at over £500,000.
Despite this, there are lots of opportunities to invest in unmodernised properties at a lower purchase price, giving investors the chance to make impactful upgrades that benefit their tenants while protecting their investments.
Flats vs Houses
Guildford offers an abundance of property types, so deciding to invest in a flat or a house will depend on a few things. While houses often come with a higher initial investment, they appeal to long-term tenants such as families and can typically offer strong long-term value.
However, flats and apartments, especially 1- and 2- bedroom properties, are in high demand and often require a lower upfront investment. It’s important to factor in additional costs, including:
- Service charges
- Leasehold obligations
These can have an impact on your overall returns.
The Best Areas in Guildford
Different areas of Guildford appeal to different types of tenants. Properties close to Guildford town centre and railway station are often popular with young professionals and commuters, while areas such as Burpham and Merrow tend to attract families thanks to their schools, green spaces and larger homes.
For investors considering student accommodation, neighbourhoods close to the University of Surrey, including Park Barn and Stoughton, can offer access to a consistent pool of potential tenants. Understanding the local areas and the types of tenants they attract can help you narrow down your options to find the most suitable location based on your investment goals.
Property Investment Opportunities in Guildford
Guildford’s diverse tenant base creates lots of opportunities across a range of property types. Let’s take a look at some of the most popular options for investors.
Buying Student HMOs
Guildford is home to several educational institutions, including the University of Surrey and Academy of Contemporary Music (ACM). With thousands of students studying in the town each year, investing in student rental property can be an attractive option for landlords.
Purchasing an HMO (House in Multiple Occupation) for student tenants can present an opportunity to make cost-effective upgrades that improve the property’s appeal to tenants. The large student population in Guildford means there is usually consistent demand for shared accommodation, making HMOs a popular choice among buy-to-let investors.
While student HMOs can reduce the risk of your buy-to-let property lying empty, it may come with additional responsibilities and costs. Students often stay in a property for an average of one year, so you may find yourself (or your managing agent) having to market your student HMO regularly. Frequent tenant turnover can also lead to increased wear and tear, so these are costs that would need to be factored in.
Rental Properties for Young Professionals and Commuters
Guildford’s rental market isn’t solely driven by students. While some graduates leave the area once they have their degree, others choose to stay and begin their careers locally. With its excellent transport links, Guildford is a popular choice for young professionals working in Surrey and London. A fast train from Guildford can reach London Waterloo in as little as 32 minutes!
Unlike students, young professionals are often more likely to stay in the same property for longer than a year. Investing in 1- or 2-bedroom apartments can be a strong option, as these properties are often in demand among young professionals and commuters. Properties close to Guildford town centre and the railway station can be particularly popular because of their transport links and proximity to local amenities.
Investing in Family Homes
With house prices in Guildford sitting above the UK average, it’s unsurprising that the area is home to many larger family properties. Moving away from the town centre and venturing into the suburbs and surrounding areas of Surrey can provide access to larger properties. These more often offer features like gardens and additional living space, making them an obvious choice for families looking to rent.
While family homes cost more to invest in initially, families represent the largest proportion of renters in the UK. They may also be more likely to stay in a property for longer, which provides more stable and predictable rental yields.
Final Thoughts
Property prices in Guildford may be higher than the national average, but the town continues to attract a broad mix of tenants and offers a range of investment opportunities. As with any property purchase, the right purchase will ultimately depend on your budget, target tenant and long-term investment goals before deciding where and what to invest in.