Are Clandon and Ripley attractive financially, or just aesthetically?

A client living in Ripley recently asked for my thoughts on the suitability of Guildford as a place to buy to let a semi detached house, compared to Ripley, or it's neighbours, East and West Clandon. 

Prices for semi-detached properties in Ripley have been increasing at a slightly faster rate than in both Clandon and Guildford over the last 12 months while prices in Clandon have grown at a slightly faster rate of 23.19% over the last 5 years, compared to 22.82% in Guildford and 22% in Ripley.

Ripley is a charming and historic village located a short distance from Guildford along The River Wey. It was first recorded in documents from around 1200. The growth of Portsmouth as a naval port in the time of Henry VIII brought prosperity to Ripley. Roadside inns were given nautical names including The Ship and The Anchor (renamed The Jovial Sailor). However the most popular pub in the village is The Talbot Hotel, a former coaching inn, which dates back to 1453.

The guitarist, Eric Clapton, was born in Ripley. The Royal Horticultural Society is located nearby, at Wisley. 

The name Clandon is derived from clenedune or ‘Clean Down’, meaning open downland free from scrub. Later, West Clandon was owned by a series of neighbouring families, which included the Westons of Albury (1294-1441) followed by the Slyfields of Great Bookham (1441-1638).

In 1642, Sir Richard Onslow purchased Clandon House and its surrounding parkland from the Westons of Sutton Place. Sir Richard’s descendants went on to acquire more land in the village. Sir Richard was succeeded by his son Thomas and it was this second Lord Onslow, who in 1731 built the mansion which stands today (although severely fire damaged), being used regularly by royalty as a base from which to attend the then prestigious race course situated on the Merrow and Clandon Downs. 

The Bulls Head West Clandon

The Onslow Arms West Clandon

The best advice we can give to those looking to invest in property in different areas is our secret trick of the trade. You can judge the affordability of a town by simply finding the ratio of the average property price to the average salary. The lower the ratio, the more affordable property is.

When we put this to the test for semi-detached properties, we found that Ripley currently has an average property value of around £482,056 with the average salary being £31,044. This is a ratio of 1 to 15.52. Meanwhile in Guildford, where the average property price is £430,683 the ratio of property values to average salary of £26,481 is 1 to 16.26, which suggests that property in Guildford is 4.8% less affordable than in Ripley.

We also took a look at Clandon to discover that both the average property value of £572,975 and the average salary of £34,920 are both the highest figures for the three areas used in our comparison. However our calculations suggest that semi-detached property in Clandon is at more or less at the same level of affordability as property in Guildford. 

Ripley might therefore be fractionally more affordable than Clandon or Guildford, even though the average price of semi detached houses in the village are on average more expensive than in Guildford so should our client should continue to invest in Ripley?

A recent article in the Guildford Property Blog suggested that both the average property price and average income in Guildford can depend upon whether you live in the GU1 or GU2 postcode area so Guildford still has the potential to offer more affordable property than can both Clandon and Ripley.

Guildford has a lower average rental of £1,595 pcm, compared to £1,750 pcm for both Clandon and Ripley. If a property were purchased in Guildford, at the average property value of £430,683, an investor would realise a gross yield of 4.4%. This yield can be achieved in Ripley too but, as stated above, the average price of property there is more expensive than in Guildford. 

So the question to ask is whether paying a £50,000 premium is worth the price to live in an attractive village, like Ripley, when you can invest in Guildford for less and also attract more tenants, looking for good quality housing to rent because there are better public transport links, more businesses and places of entertainment to encourage them to live in the area.

If you would like to have a chat about property prices in Guildford or local villages, or indeed a general discussion on investment opportunities in the area your call will always be welcome. Phone 01483 320207 or email richard@guildfordpropertyblog.co.uk