Property investment stats for South Merstham, South East
A complete guide to property investment in South Merstham.
Last updated: 10 January 2026
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 84 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.
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
£470,000
25% of properties below...
£325,000
75% of properties below...
£650,000
Most expensive property
£1,750,000
Live listings
83
Median days on market
84
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 £1,850, 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 £1,575 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.
Property market trends in South Merstham
Average yield (%)
Median price per sq ft (£/sq ft)
Live properties in South Merstham
Investment properties in South Merstham, South East
£350,000 - Offers in Excess of
3 bedroom apartment for sale
Ref: SM - Station Road North, Merst...
£245,000 - Guide Price
Property for sale
Bletchingley Road, Redhill
£950,000 - Offers in Excess of
4 bedroom detached house for sale
Grange Close, Merstham, RH1
£600,000 - Offers in Excess of
5 bedroom end of terrace house for sale
The Moors, Redhill, RH1
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
Nearby and related areas
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.