Charlie Collins – Head of Guildford Office – Savills
Surrey remains one of the UK’s most resilient and desirable property markets. Benefiting from its proximity to London, strong economic fundamentals, highly regarded schools and attractive countryside, the county continues to attract homebuyers, investors and businesses despite a challenging national backdrop. Yet the next five years will be defined by a complex mix of affordability pressures, infrastructure constraints, planning reform and changing patterns of demand. The question is not whether Surrey will continue to grow, but how successfully it can accommodate that growth.
Residential Market
The residential market has demonstrated considerable resilience over the past year. While political uncertainty, fiscal policy changes and higher-than-expected interest rates have tempered activity nationally, Surrey has generally outperformed many comparable markets in the South East. Demand remains particularly strong for high-quality family homes in desirable locations, especially within the £1 million to £2 million price range. Well-presented, energy-efficient and “turn-key” properties continue to attract strong interest, while homes requiring significant investment or carrying pricing expectations above market reality are taking longer to sell.
However, the market has undoubtedly become more selective. Buyers are increasingly cautious and due diligence has intensified, leading to longer transaction periods and higher levels of fall-throughs. Sellers who recognise market conditions and adopt realistic pricing strategies are generally achieving better results than those seeking to test the market.
New Homes
The new homes sector faces a particularly challenging environment. Elevated borrowing costs, affordability constraints and slower sales rates continue to impact delivery across the development industry. Major housebuilders are reporting significantly reduced absorption rates, while smaller developers often face even greater difficulties. Government-backed initiatives designed to support first-time buyers may provide some assistance, but their success in Surrey will depend on whether regional price caps adequately reflect local market realities. Incentives, including stamp duty contributions and mortgage support packages, have become increasingly important sales tools.
Lettings
At the same time, Surrey’s rental market is undergoing significant change in what has been a pivotal year in lettings. Demand remains robust, supported by aspiring homeowners delaying purchases and households seeking flexibility amid economic uncertainty. Legislative changes affecting landlords have contributed to tightening supply, placing upward pressure on rents, particularly at the lower end of the market. Premium, well-maintained rental properties continue to outperform the wider market and attract strong levels of tenant demand.
Development
Looking ahead, housing delivery will be one of Surrey’s defining challenges. Annual housing needs are estimated at around 13,000 to 14,000 homes, yet recent delivery levels have generally fallen far short of that requirement. Rising build costs, infrastructure limitations and historic land supply constraints have all contributed to this shortfall. The consequence is an affordability crisis that continues to worsen. In many parts of Surrey, house prices exceed ten times average incomes, with some locations experiencing ratios significantly higher than this. Average property values remain well above the national average and continue to present barriers to younger households and essential workers.
Fortunately, there is a growing pipeline of strategic development opportunities across the county. Major schemes at Wisley, Longcross, Gosden Hill, Blackwell Park and other locations have the potential to deliver thousands of homes over the coming decade. Regeneration projects in Guildford, Leatherhead, Redhill and Camberley could also make important contributions to housing supply while supporting wider economic growth.
Planning & Local Government Reform
Planning reform could prove transformational. The Government’s evolving approach to Green Belt and Grey Belt policy has already increased interest in previously constrained development opportunities. Surrey’s Green Belt has historically played a major role in limiting growth, but the next five years may see a more nuanced approach emerge, with selective releases supporting sustainable development in locations with strong transport links and infrastructure potential.
Infrastructure remains perhaps the greatest long-term challenge. Surrey benefits from excellent strategic connectivity, sitting between Heathrow and Gatwick airports and maintaining strong rail links to London. Yet congestion, limited rail enhancements, water capacity issues, electricity network constraints and digital connectivity concerns all threaten future growth. Without coordinated investment, these factors could limit the delivery of housing and employment opportunities that Surrey requires to maintain competitiveness.
The transition to new East Surrey and West Surrey unitary authorities in 2027 also presents both opportunity and risk. Greater alignment between planning, transport, education and economic development functions should ultimately improve strategic decision-making. However, maintaining momentum within planning services and ensuring local plan preparation remains on track will be essential during the transition period.
Conversations on Growth in Surrey
Despite a challenging economic and planning environment, Surrey remains exceptionally well positioned. Strong demographic demand, a highly skilled workforce, globally connected transport links and a substantial pipeline of strategic development opportunities continue to underpin long-term confidence in the market. While affordability, infrastructure delivery and planning reform present significant challenges, they also offer the opportunity to reshape how Surrey grows and evolves.
The next five years will be critical in determining whether the county can successfully balance growth, sustainability and prosperity. What is clear is that Surrey will remain at the forefront of many of the most important conversations currently taking place across the UK property and development sector, conversations that will continue at the Surrey Development Forum Annual Conference and through industry platforms such as the UK Property Forums Southern Snap podcast.
Success over the next five years will depend on Surrey’s ability to balance growth with environmental stewardship, deliver critical infrastructure, improve housing affordability and provide planning certainty. If these challenges can be addressed, Surrey is well placed to remain one of the UK’s most attractive and economically successful property markets well into the next decade.
Further information can be found here:
Southern Snapshot Podcast (UK Property Forums):
https://ukpropertyforums.com/podcast-snapshot-of-surreys-prop-market-with-charlie-collins-savills/
Surrey Development Forum Annual Conference (4th November, Woking Town Centre):
https://surreydev.co.uk/event/surrey-development-conference-4th-november-2026
