I was talking to a landlord from Little Baddow the other day
about the Chelmsford property market, following my recent articles in the Essex
Chronicle With all the news about house prices rising, he wanted to know what had
happened to average property prices since the New Year. According to my
calculations, the ‘average value of a property’ in Chelmsford is now £297,100,
which is a rise of nearly £9,800 from 3 months ago figure of £287,300 ( a rise
of 3.4%). Now by my calculations, the average rent being asked in Chelmsford is
around £1,049 pcm, which means the yields/annual return are an impressive 4.23%
per year. Since June 2013, the average
value of a property in Chelmsford has risen by 7.2%, meaning landlords achieved
a total return of 11.43%.
When comparing this to what you get in return from banks, buy
to let could be a good investment for you. As I reminded another landlord the
other day from Witham, the Chelmsford property market has certainly changed since
2001. At the turn of the
Millennium, of the 64,564 households in the City and immediate villages, 3,779
of those households (or 5.85%) were privately rented. Ten years later, and
5,103 new properties had been built in Chelmsford, but most of those had been
bought for Buy to Let; because by 2011, there were 7,621 properties that were
rented out to tenants .. that’s a lot of rented houses! (interesting though
Chelmsford is still below the UK average for renting because whilst Chelmsford has 10.9% of its households
being rented, the UK average is 15.6%).
Don't get me wrong, there are pitfalls. My
message to all the people of Chelmsford, be you an existing landlord or you are
thinking of dipping your toe in the water for the first time is quite simple –
take some independent advice before buying anything, unless you're 100% sure of
what you're doing. I say this because I know what happens when people don't.
Even if it's not from ourselves, there are still a few regulated 'lettings
only' agents in Chelmsford who are well placed to advise on whether the property
you're considering will rent, and at what potential price. We're certainly more
than happy for you to pop in and see us at our office's on Duke Street in Chelmsford
for a chat or email direct for any opinion on stephen.frost@martinco.com
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