If only jobs could pay the same as Guildford property

Last week, a landlord came to discuss the rising property values in Guildford having reflected over the past 6 month's events while on holiday. He mentioned three events in particular. 

1. The influx of foreign investors buying in Guildford; 
2. The increase in the number of investors moving out of London to areas like Guildford due to sky high prices in the capital; and 
3. The General Election and the affect this has had on the property market.

He owns a varied portfolio of rental properties, primarily in Guildford, so thought it would be interesting to compare the increase in property values in the area to those in London plus England and Wales; and to discover how property price increases might compare to weekly pay in his area.

Does it pay to work or to invest in property?

The average weekly gross income estimate for GU1 is £1,210 compared to £850 in GU2.

Over the last 6 months the average property value in Guildford has risen by nearly £29,057, from £504,636 to £533,693. This is a very reasonable 5.76% increase which equates to £1,118 per week. So while a house price increase will not go directly into the landlord's pocket, he can be reassured that his properties in the GU2 postcode area have risen more on a weekly basis than the size of the average weekly gross income for this area.

The increase in Greater London average house prices was higher at £1,226 per week than they were 6 month's ago, though the percentage increase was fractionally lower than Guildford at 5.41%. This may not be considered significant enough to suggest a major change in house prices compared to those in Guildford but is encouraging nevertheless.

Average house prices in  England and Wales rose by a more modest average increase of £345.65 per week which still remains positive, in the knowledge that prices are now more or less returning to their pre-2007 level, following the financial crash that year. 

The following table shows comparative prices issued by The Land Registry for house sales over their last 6 month period.

When considering this landlord’s buy to let portfolio, the rental values have remained fairly stable during the last 6 months but he, like other property landlords in Guildford, have therefore gained from a very reasonable appreciation in the value of their assets and would therefore be wise to keep hold of them for the foreseeable future, to benefit from further capital gains, while this trend of price increases continues.

If you would like some advice about buying to let and Guildford property prices in general then call me for a chat. Your call will always be welcome. Phone 01483 320207 or email richard@guildfordpropertyblog.co.uk