Who would win a Euro property tournament?

After a year’s delay, Euro ‘2020’ is set to kick off this weekend. Whilst it will almost certainly culminate in yet more heartbreak for England fans (and the Scottish and Welsh), you never know…maybe, just maybe, it could be our year. To bring the focus back to property though, let’s take a look at how our property prices compare to some of the European nations we’ll be facing on the football pitch.

By default, Portugal remained the reigning European champions for an extra year. They can also boast about their property market for a couple of reasons too; at 1,185 Euros per square metre, property prices in Portugal are amongst the cheapest in Western Europe. They are however going through something of a boom, with prices having risen by 6.8% in the past year. It seems Ronaldo and his chums have a couple over us in the property stakes too!

Portugal’s property prices weren’t the top riser in Europe last year though. That honour goes to the team who will be kicking off the tournament…Turkey. Property prices there increased by 32% last year, although that is largely down to the high inflation the country is facing (on account of the Turkish Lira depreciating heavily against other currencies). 

Hungary is the only Euro 2020 competitor who has seen property prices decrease in the last 12 months (by 10.4%). Even Italy (+1%), Spain (+2.3%) and Ukraine (+5%) saw prices rise, which is a reversal from the fact their property prices are still lower now than they were ten years ago!

It doesn’t seem right finishing without mentioning perhaps our greatest footballing rivals, Germany. They have had a strong year of house price growth, with prices up 11.5% (enough for fourth place overall). Having been drawn in the ‘group of death’ against France and Portugal for the Euros, I’m sure they’ll be hoping against another fourth-place finish!

If you’re more into Location, Location, Location rather than the football, be sure to sign up to the free Chichester Property News fortnightly newsletter by visiting www.bit.ly/ChiPropertyNews

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BUY-TO-LET DEAL OF THE WEEK: 3 bed house in Tangmere, £285,000, 4.6% yield

Summary:

3 bed house in Tangmere
Listed for sale on 13/04/21 @ £300,000
Now = £285,000
Rent = £1,100pcm
Yield = 4.6%
Last sold for £165,000 in 2006 (+73% in 15 years)

The property is on the market with Cubitt & West and full details can be found on Rightmove via the following link: 

https://www.rightmove.co.uk/properties/105436394

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£671m spent on property in Chichester in 2020

…£671,706,430 to be precise.

That was the huge amount of money spent on property in Chichester in 2020, according to recently released Land Registry data. Considering the onset of the coronavirus pandemic and the amount of time we spent locked indoors, you may be surprised to hear that figure is actually up on 2019! That is some turnaround, especially when the trajectory for the previous two years was on a downward trend. 

This increase came solely from a rise in property prices, as the number of transactions fell. Do you remember when people were pulling out of purchases early on in the pandemic, as the media suggested house prices were set to crash? Well, those people missed out, as property prices in Chichester ended 2020 up by 7%, with the average price paid throughout the year sitting at a new record high (£395,964, which was an increase of 5% on the 2019 average).

One year ago, whilst still in lockdown, I made the fairly sure statement that as I analysed the figures this year, the number of transactions would be down. Whilst that is correct, I’m amazed to see the figure is only down 2% compared to the 1,737 properties sold in 2019 (1,697 properties were sold in Chichester in 2020). That does, however, continue the downward trend for property transactions in Chichester, which now stretches for six years (since 2014, when 2,376 properties changed hands).

Bearing in mind an average of 2,525 properties were sold in Chichester each year between 2000-2007, it is evident that the fallout from the credit crunch is still rumbling on. Considering the number of new homes built in Chichester since then too, it is clear that we are far below the number of transactions you would expect from a healthy property market in Chichester.

Today there are 757 properties on the market in Chichester, with 367 showing as sold (subject to contract). This time last year there were 630 properties on the market, with 195 having been sold. This suggests there is plenty of room for more positive figures next year, with the number of transactions increasing for the first time since 2014. Of course, when the stamp duty relief comes to an end later this year, the market could come to a grinding halt instead… 

To keep on top of the latest happenings in Chichester’s property market, sign up to the free weekly Chichester Property News e-mail at www.bit.ly/ChiPropertyNews

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BUY-TO-LET DEAL OF THE WEEK: 4 bed house in Chichester, £369,995, 4.9% yield

Summary:
4 bed house in Chichester
Listed for sale on 11/05/21 @ £369,995
Rent = £1,500pcm
Yield = 4.9%

This four-bedroom house is on the Shopwyke Lakes development in Chichester and I think offers very good value indeed. That's despite it being relatively expensive at £369,995 compared to most of my buy-to-let picks and it being virtually a new-build. Importantly though, the new-build prices on the site seem much higher than this comparably, whilst this house remains in fantastic condition.

It's also a large property, with four bedrooms (although technically the fourth bedroom is a 'study' due to its small size). And in addition to what you'd expect of a newish build, two of the bedrooms have an en-suite, whilst there's also a good-sized kitchen/diner and neat rear garden.

I'd therefore expect it to rent for £1,500pcm due to its great condition, good size and the limited rental stock on the market currently. That would equate to a very strong 4.9% rental return, from a reasonably new freehold property that requires little to no works to be ready to rent. 

The property is on the market with White & Brooks and full details can be found on Rightmove via the following link: https://www.rightmove.co.uk/properties/80164575

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What’s available to rent in Chichester?

Not much!!! 

For months now the supply of rental properties in Chichester has been at record lows, whilst demand remains stubbornly strong. This has led to a hugely competitive market for wannabe renters, whereby I am typically receiving double-digit numbers of enquires within 24 hours of listing any property to rent. That is despite rents increasing across the board as a result of this supply and demand imbalance.

One year ago there were 148 properties available to rent in Chichester. Admittedly a year ago was a strange time as the coronavirus lockdown largely put a halt to the rental market. So, to ascertain the ‘norm’ a little better, let’s take the figure from two years ago, whereby there were 127 properties to rent in Chichester. 

…Today, there are just 16 properties to rent in Chichester!!

Clearly there’s not much choice for those seeking a property to rent, which explains why so many people are enquiring as soon as something comes to the market. Furthermore, it explains why people are willing to pay more as and when something suitable becomes available. This has led to an increase in asking rents across the board, such that the current average asking rents in Chichester are:

Ultimately this data is a little less representative as it’s based on fewer inputs, but nevertheless….

…The average rent for a property in Chichester is currently £1,100pcm, up from £995pcm a year ago.

The cheapest property available to rent in Chichester is a studio apartment on St Pancras, costing £700pcm (including bills). On the other end of the scale is a five-bedroom detached house on Graydon Avenue in Donnington, marketed for a staggering £2,500pcm.

Why then has there been such a drastic decrease in the number of properties available to rent? Put simply, landlords are selling up. The stick of taxation and legislation has proven too much, whilst the carrots have largely fallen into tenants’ laps in the past one-two years. Many landlords are cashing in their chips, deciding that buy-to-let simply isn’t worth it anymore.

I’ve written many times about the negative impact taxation and legislation changes are likely to have on the rental market; not only directly for landlords, but ironically for the tenants they are supposedly meant to help. This has now come to fruition as rental supply is at an all-time low and, unsurprisingly, rents are increasing as a result. That perfect storm is making it increasingly difficult for tenants to find their dream home at an affordable price.

To stay abreast of the availability and average prices of rental properties in Chichester, be sure to subscribe to my free fortnightly e-newsletter at www.bit.ly/chipropertynews.

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BUY-TO-LET DEAL OF THE WEEK: 2 bed house in Chichester, £250,000, 4.7% yield

Summary:
2 bed house in Chichester
Listed for sale on 03/02/21 @ £280,000
Now = £250,000
Rent = £975pcm
Yield = 4.7%
Last sold for £225,000 in 2017 (+11% in 4 years)

There are very few properties currently on the market in and around Chichester that I would deem a 'bargain' or worthy of investing in currently. The market is hot, prices are up and are being further inflated by estate agents...and then sold! I have a few investors who have contacted me recently and we have had exactly this discussion - if you want to buy now, fine (it's normally best to "buy property and wait" as opposed to "wait to buy property"), but, personally, I would wait for the occasional gem that comes to the market that offers great value.

I believe this two-bedroom house, however, is one of those rare gems!

Keen Chichester Property News readers will note I highlighted it as a 'buy-to-let deal of the week' when it was first listed in February at £280,000. It was subsequently reduced to £270,000 and just this week has been reduced to £250,000. My original write-up (see here) said it was a good house but that it wasn't a bargain...but now I think it's very close to being so. It's the cheapest two-bedroom house in Chichester (a good start) and is now just 11% more than the current owner paid four years. It's projected rental value of £975pcm will provide a decent 4.7% rental yield based on the full asking price, which is decent for a freehold property in the area. As my recent market statistics show, two-bed houses are in short supply and rents are increasing as a result.

Per my last write-up of the house, it is in a popular area that I believe will continue to attract buyers and tenants alike for it's relatively quiet setting, close to the South side of Chichester, which will (one day) be improved by the Southern gateway development. It has two double bedrooms, which makes it suitable for a wider variety of tenants compared to those with one double and one single bedroom. It seems to be in nice condition throughout, with double glazing and gas central heating, so it should be ready to rent straight away rather than requiring extensive refurbishment works first.

The property is on the market with Cubitt & West and full details can be found on Rightmove via the following link: https://www.rightmove.co.uk/properties/102439622

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What’s for sale in Chichester?

With the stamp duty relief extended, yet more fuel has been thrown onto what was already a busy and competitive housing market. With that in mind, I thought I’d take a look at what’s out there at the moment in Chichester for potential buyers.

There are 802 property listings currently online in Chichester. 418 are still available to buy, whilst the other 384 have been sold (subject to completion). However, when you start to browse through these properties, you notice there are a lot of mobile homes (that can’t be used as a permanent residence), retirement flats (that are only good for people of a certain age), shared-ownership homes (that aren’t available to everyone) and properties advertised for ‘cash buyers only’ (which won’t apply to most). When you take all of these out of the mix, you’re left with just 276 properties to choose from!

Those looking to buy a three-bedroom home have the most choice, with 76 currently for sale (mostly terraced houses). Meanwhile those at the lower-end of the market looking for a one-bedroom property have the least to choose from, with just 25 on offer (all but one of which are flats).

Of course, what you can buy will largely depend on your budget. The cheapest of the 276 mortgageable properties that are suitable for non-retirees, can be called your own and lived in all year round, is a one-bedroom flat in Shopwhyke Road, priced at £135,000. 

At the other end of the scale, the most expensive property for sale in Chichester today is a five-bedroom townhouse in West Pallant, priced at £1.5million. Located in the heart of the city, the Grade II listed property boasts three floors of beautifully-presented accommodation, as well as a south-facing rear courtyard.

Assuming your budget is somewhere in the middle of those two extremes, it might be useful to know that the average property marketed for sale in Chichester is priced at £379,950, which is just £50 shy of the average figure twelve months ago i.e. asking prices are very similar to a year ago.

Breaking the average down by property type provides a good indication of what your budget is likely to be able to afford in Chichester:

Interestingly, the average price of each property type has either increased or remained the same (in the case of two-bedroom flats) compared to a year ago. This has occurred at the same time as the number of properties available to buy has (marginally) decreased and yet the number of properties sold has nearly doubled compared to a year ago.

It seems therefore that the low supply of property alongside an increase in demand in Chichester is a key reason why property prices remain so resilient despite the pandemic. This limits prospective buyers’ choices, which makes finding that dream home just a little bit trickier.

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