You should have bought in Markenfield Road 10 year's ago!

One of the most frequent questions asked by those starting out in the world of property investment is "when is the best time to start investing?" The response from experienced investors tends to be "10 year's ago". I suppose this is based on the assumption that properties are assumed to double in price every 10 years. The secondary response is "and if not 10 year's ago, the answer is now!"

How are landlord's properties performing?

One of my more established landlord friends has been investing for 10 years so was interested in discussing how his investments in Markenfield Road had performed during this period. I suggested we look at both the sale prices and rental figures achieved for properties in the street during this time. Then we could determine how the gross yield had changed as a result of these price changes.

Markenfield Road

This is a well established street situated opposite the cricket pitch, where Surrey County Cricket Club have played in the past. This pitch is also home to the annual Guildford beer festival. The street is located within a 10 minute walk of Guildford town centre

The properties in this street were built in Edwardian times, all to a similar design. Most comprise of 2 reception rooms, a kitchen and three bedrooms plus bathroom. Many have been extended by moving into the cellar or up into the loft to provide an extra bedroom plus bathroom. Several houses have been extended out to the rear to provide a larger and more modern kitchen.

Ownership status

The last census suggests that half the properties in the road are owner occupied and approximately a quarter are privately rented, so is popular with landlords. In fact one sixth of properties are occupied by more than 3 people suggesting that they are multi-lets.

The majority of owner occupiers are in professional or managerial roles, between the age of 30 and 44 with many being single. The number of degree educated people living here is also greater than the average number in streets local to Markenfield Road. This might have something to do with the proximity of the bars and restaurants in the town centre plus The Stoke Pub and Kings Head pub, at the top of the road. 

The figures

Returning to the figures the average value of a typical 3 bed semi terraced house on Markenfield Road was £245,250 in 2005. This figure had risen sharply to £360,395 by 2007 but dropped back to £335,950 for two years before recovering in 2010. Prices have continued to rise with the average value now standing at £469,900. A house in the street has recently sold for £524,950, a 214% increase in 14 years.

Then the landlord stated that the rents he had achieved on Markenfield Road seemed to be fairly stable over the ten years. In 2005 the average rent was £1,535 per month but is now between £1,695 and £1,850, dependent on the size and quality of the accommodation provided so rents have risen by just 10-20%. 

This is all great news for the landlord because his investment back in 2005 would have achieved a gross yield of 8% and now that rents have increased he is achieving 8.3% where as a landlord investing at today's current prices in Markenfield Road would achieve a gross yield of only 4% i.e.50% less. If the new landlord were to rent out to sharers he might increase his gross yield to 5.5%. 

The answer

It therefore seems that the maxim that states the best time to start investing was 10 year's ago is therefore true. Just imagine what the yield would have been if one had invested (say) 50 years!

If you would like to have a chat regarding property prices in a specific street and how they compare with prices elsewhere in Guildford or to just talk about investment opportunities in general your call will always be welcome. Phone 01483 320207 or email richard.hodgson@newman.uk.com

Railwayman's Cottage Designed for Modern Living

This wonderful railwayman's cottage was built at the time when the railway first came to Guildford and so has considerable character yet it has been completely refurbished, including a new kitchen.

I like it because it is located directly opposite the mainline railway station and so would be ideal for a couple busy commuting up to London and wanting a guest bedroom, or even a nursery if planning to start a family.

The property is semi-detached with 2 reception rooms and 2 bedrooms so would also make an ideal multi-let property for young commuters happy to share. There is an upstairs shower room which is unusual for a property of this type.

For further information please visit https://www.rightmove.co.uk/property-for-sale/property-59400522.html. If you would like to arrange a viewing please contact the agents Winkworths but please hurry as the property has been reduced in price and will therefore prove to be popular.

If you would like a chat about property prices in Guildford or want to discover where you will find your next residential or investment property in Guildford call 01483 320207 or email richard.hodgson@newman.uk.com

In the meantime why not visit https://instantvaluation.newman.uk.com/ to perform an online valuation for your home to discover how much it might be worth in today's market.

Should you invest in a 2 bed flat or house?

Many investors approach me wondering whether they should purchase a flat or house if their investment fund is limited. Some might therefore be surprised by the answer.

So what type of property would make a better investment if an investor wants to hold for the long term and therefore rent out to prospective tenants? The first question I ask them is what are they looking for from the investment - capital growth or a great yield? Answering this question will help an investor to figure out which properties to buy.

When considering 2 bedroom properties, figures for the last 10 years state that houses have risen in value by as much as 80%, in Guildford. Flats have risen but by a lower 67% so 2 bed houses have achieved a higher capital gain over this period to suggest they potentially make a better long term investment.

Typical two bed flats in Guildford

The average asking price for a 2 bedroom flat today is £334,950 but for just £15,000 more a 2 bedroom house can be purchased so it would appear wise to invest in a house.

The rentals for both types of 2 bedroom properties are also similar. A 2 bed flat is on average £1,275 pcm while a house is just £20 more at £1,295 pcm. A flat may however be slightly less financially attractive because the investor will need to consider the cost of the management fees to be deducted from the monthly rental income.

A typical 2 bed house in Guildford

The gross yield is therefore 4.6% and 4.4% respectively so as there is little difference between these figures this suggests that the investment decision may not be made on a financial basis.

The decision may be based upon market demand and perhaps the investor's preference towards tenant type. A flat will be more desirable possibly to young professionals starting out on the property market and because they are young may prefer a social life to having to spend time maintaining the property and a garden. There is a more plentiful supply of flats in the Guildford property market than houses too.

Houses may appeal more to couples, possibly with a child, because they will have the benefit of more space and a garden plus more privacy. They might also enjoy the pleasure of maintaining their property and the occasional DIY, at the expense of having a social life. 

As regards the investor it would appear that there is little to choose between both types of property. However investing in flats might now be the answer as there is not only more demand for them but with the advent of AirBnB, requests for short term accommodation particularly in flats, is on the increase. 

The potential rental income could therefore be significantly greater in this instance as the investor can charge more for short stays than they can for longer term tenancies. However there is a lot of specialist knowledge required to operate an AirBnB business so an investor would be wise to research this market place and the factors that they need to consider when operating short term holiday lets. 

So if you are considering such an investment decision or would like to have a chat in general about the Guildford property market please call 01483 320 207 or email richard@guildfordpropertyblog.co.uk

Bad debt or good debt?

People often come to me concerned that the return on their savings is so small now that interest rates are at an all-time low. They are therefore challenged to find a home for their money where they will attract a higher rate of interest.

When I ask, "Well, have you considered 'property' as the home for your money?" they tend to retort, "Does that only work when you have lots of money?"

This is because we are all brought up to believe that you need a 20% deposit to buy a house and then a mortgage to fund the remainder of the purchase price. Yes, this does apply when buying your own residential property. However investment properties are different.

Firstly, the mortgage on your own home is considered to be "bad" debt. This means that you have to pay the amount owed on the mortgage out of your own hard-earned income over a period of (say) 25 years when hopefully your finances will be in order at all times. Sadly, many property owners will go through a period of their life when times will not always be financially sound for them. For example, it's a sad fact but at least one in three people get divorced. Many people will be made redundant at some point in their working life too. So unless, there is a safety net there may not always be sufficient income to cover mortgage payments every month for the 25 year term.

When debt is used to fund property investments it is considered to be "good" debt. "Why is that?", do I hear you ask. If your property investment is a rental property, your tenants are paying for your mortgage. This debt is called "good" debt because you are investing in an income-producing asset. Once your tenants have paid their rent to cover the cost of your monthly mortgage payment plus utility and Council tax bills (if you pay for these) any remaining money is profit, having allowed a percentage of this income to cover professional fees, maintenance, insurance and tax.

Investment property is therefore an income-producing asset, while the purchase of a residential property provides accommodation but no profit (unless you rent out a spare room).

The second concern that people often have is that you need vast sums of money to be able to invest in property. The answer to this is two-fold. In the first instance you should not invest too much cash in one property but use this investment to afford a number of properties in order to spread your risk and secondly, to make your money work harder for you.

The second answer is that few people will have hundreds of thousands of pounds lying around in their bank account and if they do, they are surely not receiving sufficient interest at today's rates to make this a practical thing to do. This means that all property investors, however wealthy they may have been, will eventually run out of personal funds to invest unless they are educated, professional investors who therefore know how to work round this challenge.

I am developing my expertise in property investment. I have done this by becoming a student on a 12 month Property Mastermind course to become educated and to grow my network of property investors and specialists.

This experience has enabled me to offer both friends and personal contacts golden opportunities to produce an effective means to enable them to achieve their goal to generate a higher rate of return without necessarily having to become educated in property investment themselves. These returns have far-outweighed those earned by leaving their money in the bank and they have had the pleasure of sharing in the success of a number of property ventures.

Want to achieve the same? Then watch this video No money, No problem.

Still excited? Call me to arrange a chat over a cuppa coffee to see what I can achieve for you.

Ex-council properties in Guildford ... are they good buy to let investments?

Have your property cake and eat it?

It is common knowledge that many landlords purchase their investment properties in Bellfields because they have found that these ex-council properties can achieve good, annual yields of around 7%. This is especially so if they take advantage of the typical layout and design of these properties. 

Most are built with an outhouse where coal would have been stored in the old days; or alternatively an outside toilet. Those investors that have demolished this outhouse have been able to build a substantial extension in its place to provide an additional utility room, toilet and reception room and if a two storey extension, an ensuite bedroom upstairs.

6 bed HMO delivers 14% gross yield

Investors in Houses of Multiple Occupation (HMO's) have taken this process one step further by modifying a 3 bedroom house on Hornbeam Road, for example, to convert a downstairs reception room into a bedroom to provide a total of 4 bedrooms and then extend out to the rear to enlarge the kitchen to create a larger communal area and two further bedrooms. They also managed to squeeze a shower unit into each bedroom to maximise their rental from the property. 

Their rental income amounted to a staggering £4,200 pcm, compared with a typical rental of £1,350 for a similar 3 bed property down the street that has not been extended. This investor would have paid (at current asking prices) £360,000, so is achieving a remarkable gross yield of 14%. This obviously does not account for the investment required to extend the property but no doubt the increase in property value (estimated to be £450,000) has enabled the investor to remortgage and therefore take most of his money out of the property to provide a very healthy return on cash invested.

While this opportunity will deliver an extremely healthy cashflow the next question to ask is "would the capital growth for this property in Hornbeam Road be typical of that experienced by Guildford property taken as a whole?"  

What is the capital growth in Grange Rd compared with Hornbeam Rd?

How does capital growth compare for these 3 bed houses compared with Hornbeam Rd?

When sold prices for Hornbeam Road are  compared with those for similar sized 3 bed semi detached properties in nearby Grange Road and Princess Mary Close, Queen Elizabeth Park, built in 2003, the following figures, suggest that the answer is a resounding "yes".

The growth in capital for the houses in Hornbeam Road was 200%, Grange Road was 169% and finally Princess Mary Close was just 132%.

While the ex council estate property may have been considerably cheaper to purchase 11 year's ago it's growth rate would suggest that the demand by investors and owner occupiers for these properties has increased and therefore pushed prices up over this period. However they still remain cheaper than properties in the surrounding areas and will therefore remain attractive to investors especially if they are keen to create an HMO as the landlord quoted above did so successfully.

It therefore does seem that you can have your property "cake" and eat it!

If you would like advice about what could make a good investment, please call 01483 320 207 or email richard@guildfordpropertyblog.co.uk

Monopoly in Guildford ... How would you play?

A couple of local landlords and I had a discussion about the property market in Guildford, when the subject of risk versus returns arose. We concluded that all landlords are different in the way they play the property game.

Guildford Monopoly Board

One group of landlords is interested in high returns, with a greater risk as regards to the quality of the tenant, so they much prefer the student market. They tend to invest in cheaper property where they can convert reception rooms into bedrooms to maximise their yields substantially.

Other landlords have a preference towards accepting a modest yield/return on their investment in exchange for an increased certainty of finding a quality tenant. They therefore tend to invest in smaller, terraced properties in the centre of town but away from the university, in order to attract the young professional tenant.

Landlords preferring the safest route typically invest in high quality houses within commuting distance of the town centre to attract families wanting access to decent schools including St Peters, in Merrow and George Abbot, in Burpham, for example. 

We also assumed that these landlords were more likely to be accidental landlords having to move away from their current home, for example, while working on a contract located elsewhere, here or abroad. They would therefore be letting out their own home and so they would be happier knowing that so long as their mortgage payments were being covered, they would gain potentially from relatively higher capital gains over time, because their properties were situated in the more desirable areas of the town.

We therefore determined that before these landlords started playing monopoly, it would be a good idea for them to have a game plan to determine what sort of property and area would best suit their investment objectives.

For a low risk investment they might buy in either Burpham or Merrow. Weylea Farm, Burpham, for example, is a popular area for families to rent property as it offers modern housing of all sizes, all built within recent years and located within the catchment area of local schools. If an investor were to purchase a 4 bedroom house in Selbourne Road, off Sutherland Drive, they would achieve an annual yield of no more than 4.2%. 

If a landlord does not mind a slightly higher risk of void periods, or a more varied quality of tenant, they are likely to be rewarded with a higher annual yield, of around 4.8%. This level of risk can typically be taken with Victorian terraced houses around the centre of town, along the Woodbridge Road. For example, Markenfield Road and Dapdune Road attract young professionals because there are local pubs including the Kings Arms and The Stoke, at the end of the road.

If they are a property investor attempting to maximise their rate of return then one of the most profitable areas in Guildford town centre, will be Guildford Park Avenue where annual yields of 7.9%, or greater, are achievable. However investing in this street will potentially be more of a risk as many of the properties here are houses of multiple occupancy. This suggests they have 3 floors, which many of the town houses on this estate do, and accommodate 5 or more people, from 2 or more families. 

This area is sandwiched between the university campus and railway station so attracts students who are often seen staggering home on the nearby Guildford Park Road, returning after a late night at bars and clubs on this side of town. This has created noise pollution which has therefore attracted the attention of the local council.

Secondly, this type of property will always remain an HMO and so never realise the level of capital gain that a property would do in Selbourne Road. Secondly, the property in Guildford Park Avenue is worth less at an average price of £314,788 compared to £523,791, for Selbourne Road.

The game of monopoly therefore very much depends upon a landlord's objective. Do they want to maximise rental income or capital gain? What is their attitude towards risk?

To discuss how much your property is worth or where you should make your next property investment in Guildford, call me for a chat on 01483 320 207 or email richard@guildfordpropertyblog.co.uk

Living to the Manor "Road" born

This is  not quite a stately home but certainly a large property compared to those around it.

What is more important is that it is located in an area where there is a regular bus service into town and close to a major junction that takes you onto the A3 trunk road from London to Portsmouth. It is an ideal spot for walking to the main railway station. There is a parade of shops around the corner to save having to travel elsewhere for essential supplies.

Substantial property in Manor Road

As regards the property it has offering flexible and versatile accommodation including several rooms that could operate as bedrooms downstairs in addition the four bedrooms upstairs so would make an ideal shared accommodation to maximise rental income.

There is a shower room on the ground floor plus a family bathroom upstairs. There is also sufficient parking for 3 to 4 cars on the drive.

The property is being marketed by our friends at Callards, on Worplesdon Road, Guildford. Further details are available at http://www.rightmove.co.uk/property-for-sale/property-39171168.html

If you would like to have a chat about property prices in Guildford or would like to discover where and how you can gain a greater return for your money in the bank call 01483 320207 or email richard@guildfordpropertyblog.co.uk

An extended property in Raymond Crescent

We picked this property out because it is located in Raymond Crescent, one of the most popular streets for both occupiers ad tenants in this area of Guildford. This is because it is situated across the road from the University of Surrey and is just 15 minutes walk to Guildford Railway station and then onto the town centre where there are many shops, bars and restaurants.

The A3 London to Portsmouth trunk road is nearby allowing a fast exit from Guildford if one commutes to local towns for work.

Unlike most properties on this road the house has already been extended to the rear allowing room for a bathroom and ensuite bedroom in addition to the conventional two bed arrangement usually found in houses on this street. There is a second reception downstairs too.

Extended property in Raymond Crescent

This will ensure there is sufficient accommodation for a family with two children or an investor wanting to provide up to 4 bedrooms for rental to sharers in order to increase his gross yield to a modest 6-7%, assuming current market rentals.

The property is being marketed by our friends at Gascoigne Pees, in Guildford High Street. Further details are available at http://www.rightmove.co.uk/property-for-sale/property-52694860.html 

If you would like to have a chat about property prices in Guildford or would like to discover where and how you can gain a greater return for your money in the bank call 01483 320207 or email richard@guildfordpropertyblog.co.uk

An adorable property in Applegarth Avenue

You might ask why we describe this house as an "adorable" property but investors will jump on this opportunity very quickly. Why is that, do I hear you ask?

Well Applegarth Avenue is located within walking distance of the Surrey Research Park and the County Hospital. It is also within a relatively short walk of the University of Surrey campus too. This means that the demand from potential tenants will be high. The road is also very pleasant to live in because it is relatively quiet and most properties are well tended.

An ideal opportunity for an investor

Most importantly the property is being offered at a low asking price compared to those on sale in this area. This is likely to be because the property requires considerable modernisation but while doing this an investor could extend over the garage and to the rear where the current conservatory is situated (subject to the usual planning consents) to provide up to six bedrooms to maximise the rental income from the house.

If this is the case the potential gross yield will be in excess of 10%.

The property is being marketed by our friends at Callards, on the Worplesdon Road, in Guildford. Further details are available at http://www.rightmove.co.uk/property-for-sale/property-39021273.html 

If you would like to have a chat about property prices in Guildford or would like to discover where and how you can gain a greater return for your money in the bank call 01483 320207 or email richard@guildfordpropertyblog.co.uk

Corner plot in Yew Tree Drive

This property is located in one of our favourite roads on the Bellfields Estate, just over a mile from Guildford town centre. The area is very popular with landlords and investors because it offers one of the highest yields in town.

This property is reasonably priced but as it is situated on a corner plot has huge potential to extend to the side (subject to planning) to offer 2/3 additional rooms to rent out.  

Potential to extend to the side subject to planning consent

There is a bus into Guildford Town centre and the A3 trunk road provides a link to both London and Portsmouth. Guildford College is nearby and the University is within walking distance so there will be demand from students as well as young professional tenants to rent a room here.

So for landlords looking a gross yield of more than 10% and a capital gain this property is ideal and therefore likely to be very popular especially as there is no onward chain.

The property is being marketed by Hipps, in Worplesdon Road, Guildford. They are very familar with the area and will therefore be able to provide a lot of useful advice. Further details are available at http://www.rightmove.co.uk/property-for-sale/property-57145997.html

If you would like to have a chat about property prices in Bellfields, Guildford or would like to discover where and how you can gain a greater return for your money in the bank call 01483 320207 or email richard@guildfordpropertyblog.co.uk

Room up top in Park Barn Drive

Like buses these ex social houses extended with loft rooms to provide additional accommodation seem to be few on the ground and then they come along two, or three, at a time.

We have just spotted this beautiful example priced very competitively. Examples of these with the standard three bedrooms only, have been priced at the same asking price in recent months.

4 bed house with loft conversion in Park Barn Drive

The property is in excellent condition. The loft conversion has provided a stunning master bedroom which is a good size with a modern en suite shower room plus views looking far over Guildford. In addition to the remaining three bedrooms and two reception rooms there is a utility room and a downstairs WC.

The property is in a popular area for students and employees working for companies on the Surrey Research Park so the house should rent out for around £1,795 pcm so the gross yield should be around 5.7%. If the rooms are rented out separately an investor should see a healthy return of around 7-8% gross yield.

The property is being marketed by Gascoigne Pees, in Worpesdon Road. Further details are available at http://www.rightmove.co.uk/property-for-sale/property-56625341.html

If you would like to have a chat about property prices in Guildford or would like to discover where and how you can gain a greater return for your money in the bank call 01483 320207 or email richard@guildfordpropertyblog.co.uk

Why is Raymond Crescent so popular?

A landlord recently missed his chance to buy a three bed semi-detached property on Raymond Crescent, near the University of Surrey and on the edge of Onslow Village, as it sold in a matter of days. He therefore asked me if there was something special about the area, so I did a little research.

The Onslow Village Association acquired 646 acres of land from Lord Onslow in 1920 for approximately one quarter of its market value. The aim was to create a Garden City, modeled on the ideas of Ebenezer Howardís, the founder of the Garden City Movement.

It was their intention to build a self-contained community with smallholdings, public buildings, open spaces, recreation grounds, woodland and a railway, as well as developing sites for churches, hotels and factories. On May 1st 1921, ten weeks after the formation of the Association, the foundations of the first two houses were laid and by March 1922 ninety-one houses had been built. Unfortunately due to a lack of funding the scheme never reached full completion, with about 600 houses built.

The area now consists mainly of semi detached properties with the majority owner occupied, with 22% of the properties are owned by private landlords catering for both the substantial student demand from university students and young professionals. This is confirmed by the fact that almost one half of the houses comprise of three or more adults. The Census also suggests there is a 50:50 split between single and married occupants too and that a quarter of occupants are students.

Land Registry records suggest that the development was built in the 1930's, on the edge of Onslow Village. Raymond Crescent comprises 109 properties with a current average value of £358,076, compared to an average property value of £417,972, for the GU2 postcode area.

There have been 26 property sales on Raymond Crescent over the last 5 years with an average sold house price of £296,757. Most of the properties consist of three bedrooms, kitchen, one reception room and a bathroom often downstairs next to the kitchen. However many properties have been extended up into the loft area to enable one of the existing bedrooms to be utilised as a bathroom and then a third bedroom then recreated in the loft. Alternatively, owners have extended to the rear to provide a larger kitchen/diner and additional reception room plus a new and third bedroom and bathroom on the first floor.

Typical 3 bedroom houses in Raymond Crescent

A typical 3 bedroom house will realise at least £1,495 per month to provide a reasonable annual yield of around 5%. The modernised and extended properties will produce a rental of up to £1,645 pcm and therefore a higher gross yield of 5.5%.

Furthermore house prices in Raymond Crescent have increased by a substantial 10% in the last year and by 30% in the last 5 years so, as I always stated Raymond Crescent has to be one of the most profitable areas for local investors to purchase property because of the substantial demand for rental property in the street and the opportunities the street offers for development and therefore capital gains.

If you would like to talk to us about property in Raymond Crescent or a general discussion on investment opportunities in Guildford your call will always be welcome. Phone 01483 320207 or email richard@guildfordpropertyblog.co.uk

The Tale of Two Estates - Bellfields and Park Barn

Substantial property in Burden Way, off Grange Road

This four bedroom semi detached home provides substantial living accommodation for the asking price. It comprises 4 bedrooms (one ensuite) plus a kitchen/diner, living room and a family room, possibly for younger children to use as a playroom.

A substantial property in Burden Way, off Grange Road

Located on the edge of town but within close proximity to a parade of local shops plus a number of local primary schools and on a bus route into town this house will produce a gross yield of 4.5% if let out as a single let.

The agents are Hipps, Worplesdon Road, Guildford and further details are available at http://www.rightmove.co.uk/property-for-sale/property-55377125.html

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

A smaller development opportunity in Guildford Park Road

This splendid two bedroom end terraced Victorian cottage is ideally situated, just 5 minutes walk across the road from Guildford mainline station and not far from the University of Surrey. The town centre is only a 10 minute walk away. 

The property is generally well presented with two double bedrooms, a reception room, fitted kitchen / breakfast room and an upstairs bathroom but there is also some scope to update and improve the property plus to create a third bedroom (possibly with ensuite shower room) by tanking the cellar. 

The property could therefore be let for up to £1,800 pcm especially if a multi-let to realise a gross return of up to 6.6.%. 

The agents are Townends, Guildford and further details are available at http://www.rightmove.co.uk/property-for-sale/property-55360910.html 

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

The Tale of Two Estates - Bellfields and Park Barn

Affordability and lack of homes are an ever increasing problem in the South East and especially in towns like Guildford. There are in excess of 2300 people on the housing waiting list so it is with this thought in mind that this article takes a look at both the Bellfields and Park Barn estates. 

These are two examples of the last major developments built to provide social housing for the many people requiring accommodation, as a part of a post war housing strategy to deliver affordable rents for those unable to afford their own home because they were in low income jobs or unemployed.

Now the housing structure is changing. Firstly, Margaret Thatcher initiated a policy in the 1980's to enable people to purchase their council house at a discounted price if they had lived there and paid rent for more than 5 years. This was a major vote winner for her because it created many more owner occupied homes allowing those with aspirations to move onto the property ladder even with low incomes. Its popularity left far fewer houses for those that remained on the waiting list for social housing.

This problem has been exacerbated by investors purchasing social housing owing to its competitive pricing and reasonable sized rooms with scope to add extensions to provide additional rooms to rent out. This has therefore reduced an ever dwindling stock of properties available to house those in need of accommodation.

However investors do tend to offer their accommodation to sharers therefore addressing the requirement for affordable accommodation for the young and single people. Furthermore some landlords are happy to rent their properties back to the local council so that keyworkers plus families including single parents and those unable to find a job, can be housed.

So while the local housing stock is desperately short in supply ex council houses do still serve their purpose to hold up the housing market but perhaps not to the same degree as they used to.

So returning to the comparison between the Bellfields and Park Barn estates what is happening to prices and rentals for privately owned properties in these locations?

Bellfields is a suburb in the north of Guildford lying adjacent to Slyfield Industrial Estate and Stoughton. The area is home to Christ's College senior school and Pond Meadow special needs school. The streets are all named after trees e.g. Cedar Way, Fir Tree Road, Juniper Close, Laburnum Close, Larch Avenue, Lime Grove and Willow Way, for example.

Park Barn is situated adjacent to both the Surrey County Hospital and Surrey Research Park and is not far from the University of Surrey so provides housing for local employees and university staff and students too. 

The Surrey Advertiser newspaper once described Park Barn as "one of the most deprived areas of Surrey" in the 11 September 1998 publication and in October that year reported Park Barn as coming 28th in the county's league table of 30 deprived areas but the area has improved and offers homes to a substantial number of residents. 

There was talk of a railway station being built in the area to relieve congestion. This is the article http://www.getsurrey.co.uk This could bring in more companies and workers to boost the local economy.

Park Barn Estate is home to King's College, a school for 11 to 18 year-olds, whose exams results have improved dramatically, over recent years. There are several primary schools in Park Barn, including Guildford Grove School, which has a specialist sign-supported rescue base on the site which supports pupils with profound hearing impairments.

The average price for a three bedroom semi-detached house on the Bellfields development is currently £375,950 and the market rental for this type of property is £1,495 per calendar month.

Similar sized three bedroom semi-detached houses on Park Barn have a slightly lower average price of £335,150 and the average achievable market rental for these is also £1,495 per calendar month. 

Typical properties on Bellfields and Park Barn estates

The gross yield generated from a property on Park Barn is around 5.3% per year whereas the potential gross yield In Bellfields is 4.8%, so the yield in Park Barn is typically 10% higher than in Bellfields because house prices are slightly lower in Park Barn. 

However, we must remember that our objective is to look at both yield and capital growth when investing in Buy to Let properties. 

The average value of a three bedroom semi-detached house on Park Barn in 2000 was £125,995. This has risen by 266% in the last 15 years. A three bedroom semi-detached house on Bellfields in 2000 was higher, at £170,150 but the capital growth has been lower, at 221%. Park Barn has therefore experienced 20% higher capital growth than Bellfields over the last 15 years so the price gap has narrowed considerably between the two areas.

Last year overall sold prices in Park Barn were 21% up on the previous year and 30% up on the 2007 level of £224,602. Sold prices in Bellfields over the last year were just 3% up on the previous year and 13% up on the 2007 level of £329,960 so as one can see the gap has narrowed even further. 

It would therefore appear that while Park Barn might have been challenged regarding its economic status, according to The Surrey Advertiser, it could be the place to invest if one is looking for a more substantial gain, while prices continue to rise at a faster rate in Park Barn than in Bellfields.

If you want to discuss opportunities for investment in these areas then your call will always be welcome. Phone 01483 320207 or email richard@guildfordpropertyblog.co.uk

Bushy Hill property in need of cosmetic improvement

This semi-detached 3 bedroom property is ideal for a family or an investor because it offers spacious accommodation including a sun room and downstairs shower room in addition to the living room, kitchen/dining room plus three bedrooms and a bathroom upstairs.

The property also offers a garage and driveway to provide off road parking. There is no ongoing chain.

A property in need of a light refurbishment in Hillfield Close

This property will therefore sell quickly to those looking for a minor refurbishment project and a house situated in the catchment area for both Bushy Hill Junior School and George Abbot or St.Peters Catholic Schools.

There is a regular bus service running on a circular route into Guildford town centre and onto Surrey County Hospital plus Tesco or to Merrow then Burpham and the Sainsbury's store.

An investor wanting to maximise their rental return from the property could do so by converting the garage into a bedroom to provide 4 bedrooms. In this instance the potential gross rental will be £2,450 pcm to deliver a healthy gross yield of 7.5%, compared to the typical rental for a single let which is likely to be in the region of £1,595 pcm. 

The property is being marketed by Gascoigne Pees, from their Merrow office and further details are available at http://www.rightmove.co.uk/property-for-sale/property-34526712.html

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

A magnificent property in Homestall

This four bed semi-detached house is located in Park Barn so is close to major employers on the Surrey Research Park and the Surrey County Hospital plus the University of Surrey. It will therefore attract both families and professional plus student tenants.

There is one reception plus a substantial modernised kitchen/diner with utility room and downstairs WC. One of the bedrooms is ensuite. There is a garage for those who travel by car and easy access to the main London to Portsmouth A3 trunk road and the back roads to Bagshot and the M3.

An extended home ideal for a large family or an investor

This house will comfortably house a family with 3-4 children. Alternatively an investor wanting to maximise their rental return from the property could do so by converting the garage into a bedroom to provide 5 bedrooms. In this instance the potential gross rental would be £3,050 pcm to deliver a gross yield of over 9%, compared to the typical rental for a single let in this area which is likely to be in the region of £1,895 pcm. 

The property is being marketed by The Express Agency in Manchester and further details are available at http://www.rightmove.co.uk/property-for-sale/property-34121529.html

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

Queen's Drive - a popular road with HMO landlords

These properties are popular with landlords because they offer so much accommodation at a reasonable price. They are townhouses built on three floors so they provide several rooms ideally sized for converting into additional bedrooms, to rent on an individual basis.

For example, this 3 bedroom house has the potential to add a further two rooms and even a third to make 6 rooms, if the garage is converted into a habitable room. This would require the buyer to apply for an HMO license from the Council. 

A 3 bed townhouse can be converted into an HMO, in Queens Drive

This property is priced competitively as it is in need of modernisation. However it is ideally situated to provide students a reasonably short journey to the University and professional sharers a bus route into town, to the mainline station, for trains to London. The A3 is only a 5 minute drive away.

There is a parade of shops including a fish and chip establishment plus a local Sainsbury mini supermarket nearby too.

This property is therefore ideal for an investor prepared to spend on modernising the property in exchange for achieving a yield in excess of 10%.

The property is being marketed by Callards, Worplesdon Road, Guildford and further details are available at http://www.rightmove.co.uk/property-for-sale/property-54832424.html

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

An ideal investment rental property with 6.7% gross yield in Beech Grove

This is a tremendous property offering great potential for an investor having already been configured to maximise the number of rental rooms by utilising a reception room downstairs as a bedroom and by adding an ensuite bedroom in the loft area to make a house of multiple occupation ready to rent out (subject to having a licence which is necessary because the property comprises 3 floors and will accommodate 5 people or more, from 2 or more family units). 

Some expenditure might be required to install the necessary fire safety, prevention and protection devices to comply with the current regulations.

Located in the ever popular Beech Grove not far from the Tesco superstore it is in an ideal position to rent out to both professional tenants working at Surrey Research Park or the Surrey County Hospital; and to student tenants studying at the University of Surrey.

The property has 3 bathrooms providing plenty of washing facilities for all the occupants.

The property is being marketed by our friends at Townends whose offices are in Guildford town centre and further details are available at: http://www.rightmove.co.uk/property-for-sale/property-33713094.html

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