Since the downturn the number of flats being approved has been decreasing. Developers across Guildford and Sunningdale have preferred to finance housing-led schemes, favoured by equity-rich owner-occupiers, wealthy downsizers, mature first time buyers and young professionals moving out of London.
This approach subsequently decreases the overall affordability of local residential markets and restricts the ability to purchase for mortgage reliant buyers as deposit levels rise.
Investors have been active across Guildford, Sunningdale, Windsor and Ascot as they partly have global appeal. Savills data suggests international investors have accounted for around 5% of all purchasers in these areas over the past three years. These towns are attracting foreign equity from mainly South East Asian and American investors, purchasing as a result of close links to educational facilities and higher education institutions within the region.
University student numbers across the region have increased by around 90% over the past 10 years assisted by the University for Creative Arts being granted full university status in 2008. Students have been a continued important driver of both sales and rental demand, especially for new build flatted developments in and around Guildford and Sunningdale. (See Graph 3)
Both domestic and international students at both Royal Holloway University and The University of Surrey continue to support the private rented sector and provide investors with assets yielding in the environs of 5.5%.
Future economic prospects for the South East and in particular the more affluent towns surrounding London are set to rebound faster than the UK average. Economic forecasters believe that the local authorities in which Guildford and Sunningdale sit will outperform the regional and national trends, with local employment and economic growth to be around 2% higher during 2012.
Population projections (Graph 4) provide further evidence that demand for housing is set to remain, provided that pricing and tenure is appropriate. Approximate increases of around 5% and 9% over the next 5 and 10 years are forecast for both Guildford and Windsor and Maidenhead. (See Forecast)
