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Property investment stats for South Merstham, South East

A complete guide to property investment in South Merstham.

Last updated: 18 September 2025

Investment summary

South Merstham offers a stable environment for property investors, with a strong presence of families (in the 95th percentile nationwide) and a high proportion of professionals and managers (in the 66th percentile). The area’s housing market shows moderate activity, with properties typically spending 64 days on the market and a median discount of £5,000 (the typical achieved discount), suggesting buyers have some room for negotiation. Affordability is reasonable, with a price-to-income ratio of 5.5 and a rent-to-income ratio of 23.8%, making the area accessible for both buyers and renters. The supply of homes is balanced, as reflected in the annual sales figure of 85.

Image of South Merstham, South East

Key investment stats for South Merstham

Median price per sq ft

£445 / sq ft

Average rental yield

4.1%

Capital growth (1y)

1.2%

Sales in past year

85

* Property stats calculated for last full calendar year (2024).

Live property stats in South Merstham

Live prices in South Merstham, South East

* Extreme prices clipped for legibility

Properties for sale

Median price

£455,000

25% of properties below...

£340,000

75% of properties below...

£625,000

Most expensive property

£1,750,000

Live listings

120

Median days on market

64

Should you invest in South Merstham?

Opportunities

  • The top postcode district offers particularly strong rental yields of 6.0%, which stands out for investors seeking income.
  • The current median asking sale price for a 3-bedroom house is £500,000, while the median rent for the same property is £2,050, supporting a decent rental return.
  • Capital growth over the past three years has reached 7.0%, indicating steady long-term appreciation.

Risks

  • The private rented sector is in the 17th percentile, meaning there are fewer rental properties relative to other areas, which could limit tenant demand.
  • The area is dominated by families and has a lower proportion of younger renters (20-30 age group in the 31st percentile), potentially narrowing the tenant pool.
  • Social rented housing is in the 79th percentile, which may influence local market dynamics and the profile of future developments.

Outlook

Looking ahead, South Merstham appears well-placed for steady performance. The annualised growth rate over three years is 2.3%, suggesting the area is not prone to sharp swings but offers gradual appreciation. With a strong family presence and a high proportion of professionals, demand for larger homes is likely to remain robust.

Rental yields such as 4.1% and the asking rent for a 2-bedroom flat at £1,550 help underpin the income case. Investors should expect moderate liquidity and a stable environment, with no signs of overheating or dramatic changes on the horizon.

Live properties in South Merstham

Investment properties in South Merstham, South East

1 bedroom flat for sale
On market for 178 days

£199,950

1 bedroom flat for sale

REDHILL

Slow to sell properties in South Merstham, South East
Slow to Sell
1 bedroom flat for sale
Reduced by 12%

£150,000 - Guide Price

1 bedroom flat for sale

Albury Road, Merstham, RH1

Big price drop properties in South Merstham, South East
Big Price Drop
Property for sale
248 sq ft

£365,000 - Guide Price

Property for sale

5 Flats - Freehold & Building Plot...

Properties with planning granted in South Merstham, South East
Planning Granted
2 bedroom apartment for sale
25% below median price

£228,000

2 bedroom apartment for sale

Tilers Close, Merstham, Redhill

Low price-per-sq-ft properties in South Merstham, South East
Low Price per Sq Ft

Achieved vs asking prices

Key takeaway: Balanced market

On average, properties sell slightly below asking; careful comp analysis is key.

Headline stats

• Median discount: £5,000

• 1 in 4 properties sell at > £10,000 below asking

• 1 in 10 properties sell at > £18,500 below asking

In percentage terms:

• Median discount of 1.2%

• 25% of properties discounted by > 2.4%

• 10% of properties discounted by > 3.8%

Best places to invest in South Merstham

Top postcodes for rental yield and (annualised) capital growth

Rank
Postcode
Yield
Capital growth
Median £/sq ft
1RH16.0%1.7%£456 / sq ft

Data sources

GeoGlider calculates property investment stats by blending official and proprietary datasets. Here's a quick overview of key sources and how we use them:

  • HM Land Registry: Property transaction and sold-price records for England & Wales used to calculate historical capital growth, price levels and comparables.

  • Office for National Statistics (ONS): Demographic and economic indicators for the UK, including Census 2021, supporting area profiling and market context.

  • Ordnance Survey: Authoritative UK geospatial data powering accurate boundaries, roads and terrain for mapping and spatial analysis.

  • GeoProp: Our proprietary AI pipeline that processes millions of property listings to extract rich features and live market signals.

  • Department for Levelling Up, Housing & Communities: Energy Performance Certificate (EPC) scores and property floor areas.

  • HM Revenue & Customs (HMRC): Household income and employment data to understand local affordability and economic conditions.

Data is updated continuously, matched across sources and rigorously validated.