Chichester Property News

Thursday, 18 July 2019

The most frustrating thing about letting a property

I was chatting with a fellow letting agent recently when we got on to our pet peeves with the job. We both agreed on what the most frustrating thing about letting a property is - attending a viewing only for the prospective tenant not to show up; especially when you only arranged it the day before! Unfortunately, this is a part of the course when letting properties, but is there a way that landlords and letting agents can prevent it from happening?

Some insist on confirming the appointment an hour before the viewing. Personally, I don’t like this approach as it can cause even more confusion if you can’t get hold of the prospective tenant i.e. should you then go to the viewing or not? More importantly though, if you were to remind everyone they have a viewing, you might let your property to someone who would have otherwise forgotten. And if they would have forgotten about a viewing I can only imagine they might also be the type of person to forget about paying the rent each month too.

One tip is to conduct ‘block’ viewings if possible. This means doing multiple viewings at the same time, but staggering people in to 15-20 minute slots. This gives time for each applicant to take a look around the property and ask any questions, and it ensures if one appointment is a no-show then you have another one to look forward to.

Block viewings also give the benefit of ‘social proof’, as prospective tenants can see they’re not the only ones interested in the property (one person arrives as another leaves). If other people are interested in something then psychologically it becomes more appealing to us, which should in this case prompt those who like what they see to move quickly and decisively.

Some agents and landlords take this a step further by offering open houses; whereby everyone views the property at the same time. Personally I don’t think this provides a very good service to the prospective tenants, nor does it give either party an opportunity to ‘suss one another out’ and see if committing to a tenancy together is the right thing to do.

Beyond that, the only other way to protect yourself against future no shows is to create a list of those people who committed this sin so that they aren’t afforded your time again in the future or, even worse, be entrusted with the keys to your property.

So landlords, contact me and let off some steam - what’s your biggest frustration when letting your property? Is it the niggling maintenance issues that always seem to happen at the most inopportune time, problematic tenants or, dare I say it, letting agents that are causing you the most grief?

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If you are looking for an agent that is well established, professional and communicative in Chichester, then contact us to find out how we can get the best out of your investment property.

E-mail me on clive@crjlettings.co.uk or call 01243 624 599.

Don't forget to visit the links below to view my previous buy-to-let deals and Chichester Property News articles:

^{_{c/o CRJ Lettings, 30B Southgate, Chichester, West Sussex, PO19 1DP}}

Monday, 15 July 2019

BUY-TO-LET DEAL OF THE WEEK: 3 bed house in Tangmere, £279,950, 4.7% yield

3 bed house, Neville Duke Way, Tangmere, Chichester

Summary:
3 bed house in Tangmere
Listed for sale on 28/06/19 @ £279,950
Rent = £1,150pcm
Yield = 4.9%
Last sold for £272,000 in 2015 (+3% in 4 years)

This three-bedroom house in Tangmere is beautifully presented and available at a very decent price all things considered.

It is a semi-detached house that's only 10 years old. That in itself would mean it's modern but the current owners bought the property in 2015 and installed a new kitchen, fresh carpets and re-decorated throughout. It really is in fantastic condition!

And yet it's priced at just £279,950, which I think is cheap considering what other nearby houses have sold for and the fact the current owners will be losing money based on paying £272,000 four years ago (having spent money on the improvements). Prior to that, the house was sold for £233,000 in October 2009 (when it was newly built), which was close to the bottom of the credit crunch. That means it's only increased by 20% in a decade compared to the wider market in Tangmere, which has increased by 46% in that time.

This townhouse design is popular amongst families, with the extra floor giving a sense of space and privacy. It also means you get three double bedrooms rather than having a box room and as it's a modern build it has a downstairs cloakroom, family bathroom and en-suite shower room, plus the near-essential gas central heating and double glazing. It also has a garage and a small, but again well-presented, garden.

It is likely to rent for £1,150pcm given it's size, location and excellent condition, which would mean a very good 4.9% rental yield based on its asking price. This from a freehold property in great condition (did I mention it's really well-presented??) that is ready to rent makes it a really excellent buy-to-let proposition for a shrewd buyer.

The property is on the market with Bell & Blake and full details can be found on Rightmove via the following link:
https://www.rightmove.co.uk/property-for-sale/property-82932470.html

^{_{c/o CRJ Lettings, 30B Southgate, Chichester, West Sussex, PO19 1DP}}

Thursday, 11 July 2019

Where is the cheapest street in Chichester?

Having looked at where the most expensive streets in and around Chichester were last week, I was asked by one reader which the cheapest street in Chichester is. Normally I don’t look at this as it can come across as a little negative towards the occupants of that street (not that that’s necessarily the case) but I shall, as they say, “give them what they want”.

There are also a few reasons why profiling the cheapest streets doesn’t necessarily work. The most obvious is where a street is predominantly made up of flats rather than houses, which will naturally be ‘cheaper’. For instance, St. Cyriacs in the heart of Chichester’s city centre makes the top five on account of it being made up nearly exclusively of one-bedroom flats (at an average value of £180,000, which isn’t exactly ‘cheap’!). Mobile homes also create the same affect, particularly when you expand the search to include Selsey and the Witterings rather than focusing solely on the PO19 postcode area.

Another reason the data can be skewed (and I have to use a little local knowledge to filter through it) is a more recent phenomenon - properties sold under shared ownership. You see, according to Zoopla the cheapest street in Chichester is Silverlock Close, which is a newer part of the Swanfield estate. The £125,000 average value in this row of two and three bedroom houses seem like a steal; until you realise they were sold as 50% shared ownership and thus their true value is actually double this.

So, what’s really the cheapest street in Chichester when you filter all this out? Well in the PO19 postcode area that would be Lennox Close, with an average value of £161,000. The 81 properties in Lennox Close are all flats, most of which are rented out socially or from the council.

In second place is Douglas Martin Road; another street located on the doorstep of St. Richard’s Hospital, which again is predominantly made up of flats. Each of the 26 homes here have an average value of £166,000. And in third place we move across to Parklands, where Bishop Luffa Close’s homes have an average value of £169,000. Considering it is positioned right next to some of the best regarded schools in the area, this makes one of its 65 properties attractive when it comes to their school catchment area.

When you compare this to last week’s article, when I was writing about homes worth in excess of £5m, it just goes to show what a vast difference in wealth there is in Chichester, despite it being a relatively small city.

If you’d like to receive more facts and stats about Chichester’s property market straight to your inbox, please visit www.bit.ly/chipropertynews to subscribe to my free weekly Chichester Property News e-newsletter.

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^{_{c/o CRJ Lettings, 30B Southgate, Chichester, West Sussex, PO19 1DP}}

Monday, 8 July 2019

BUY-TO-LET DEAL OF THE WEEK: 3 bed house in Westhampnett, £325,000, 4.8% yield

3 bed house, The Sadlers, Chichester, West Sussex

Summary:
3 bed house in Westhampnett
Listed for sale on 01/07/19 @ £325,000
Rent = £1,300pcm
Yield = 4.8%
Last sold for £195,000 in 2001 (+67% in 18 years)

I featured an identical house to this three-bedder in Westhampnett a couple of months ago, albeit that one was an end-of-terrace. Nevertheless the accommodation this one provides is the same and better yet it's £25,000 cheaper! At £325,000 this is a lot of property you're getting in an area that is popular with tenants - particularly those working at Rolls Royce.

Spaced out over three floors means the bedroom sizes are all very good, which opens it up to families as well as sharers (likely to be colleagues at the aforementioned Rolls Royce). That price tag is the same as an identical house in the street sold for last June, showing prices have stalled over the past 12 months. For rental purposes though you could look at around £1,300pcm, which would provide a very decent 4.8% from a freehold property.

Whilst it's 18 years old (in which time the value has increased by two-thirds) it appears to be in a good condition. This should mean there won't be much to do before having it ready to rent out to tenants. When you add together its location, size and condition, the price tag becomes even more appealing. Throwing the numbers into the mix and it seems like a very good long-term buy-to-let purchase to me.

The property is on the market with Charles Peck and full details can be found on Rightmove via the following link:
https://www.rightmove.co.uk/property-for-sale/property-82932413.html

^{_{c/o CRJ Lettings, 30B Southgate, Chichester, West Sussex, PO19 1DP}}

Thursday, 4 July 2019

Which is the most expensive street in Chichester?

About once a year I like to look at which streets in Chichester are the most expensive by average property value. For a few years there was a great tussle at the top between North Pallant and Pine Grove, with the title swapping places back and forth on an annual basis.

But, taking the honours for a third year in a row now, North Pallant has seemingly cemented itself as the most expensive street in Chichester (sticking to the PO19 postcode area). The average property in North Pallant is valued at £1,110,000, which is nearly three times the average value of property throughout the PO19 area (£382,033).

In recent years North Pallant has seen properties change hands for £1.9m in 2016, £1.39m in 2014 and a massive £2.185m in 2013 (with that property alone said to be worth £2.8m today).

Pine Grove therefore has to again settle for second spot, with an average value of £1,036,000, closely followed by Brandy Hole Lane taking the bronze, with its average value just a few thousand over the £1 million mark.

A special mention should be made for Brandy Hole Lane though, as it could be argued that it is actually the most expensive street of these top three Chichester streets. That’s because there are more properties here than the other heavy hitters, so as a whole the street is actually the most valuable (there are 42 homes in Brandy Hole Lane compared to 20 in North Pallant and 32 in Pine Grove). Looking at it like that would give Brandy Hole Lane a total value of £42.5m, Pine Grove £33.2m and North Pallant £22.2m.

Moving outside of the PO19 postcode area and looking at the Chichester district as a whole brings a host of new players into the running. With renowned sailing and blue flag beaches on their doorstep, it’s not surprising that many of the most expensive streets in the area are in Bosham, Itchenor and West Wittering. In fact North Pallant doesn’t even make the top 40 now(!), finding itself some way off the overall winner, which is Spinney Lane in Itchenor, with each of its 31 homes having an average value of £2,646,000 (giving it a street value of £82m!)

In recent years there have been single house sales in Spinney Lane of £3.85m in 2017, £4.825m in 2016 and £2.25m in 2015. Back in 2012, a five-bedroom house designed by local award-winning architect Neil Holland overlooking the harbour sold for £3.825m. This house is now recorded as being the most expensive property in Spinney Lane, with a value of £5.25m.

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^{_{c/o CRJ Lettings, 30B Southgate, Chichester, West Sussex, PO19 1DP}}

Monday, 1 July 2019

Chichester Property News - Issue 40 - July 2019

Featuring the articles:

"Should Chichester's retirees invest in buy-to-let property?",
"What is average in Chichester's property market?",
"Five major changes introduced by the tenant fees act"
and "TENANT FEES ACT SPECIAL"

and "Buy-to-let deal of the month: 3 bed house in Chichester, £299,000, 4.8% yield"

➕ Plus, the latest average property values, rents and yields in Chichester!

BUY-TO-LET DEAL OF THE WEEK: 2 bed flat in Chichester, £204,950, 4.7% yield

2 bed flat in Chichester, Bewick Gardens, Chichester, West Sussex

Summary:
2 bed flat in Chichester
Listed for sale on 30/05/19 @ £210,000
Now = £204,950
Rent = £795pcm
Yield = 4.7%
Last sold for £99,950 in 2001 (+105% in 18 years)

Two-bedroom apartments close to St Richard's Hospital in Chichester typically rent well to Doctors, nurses and hospital workers, be they a couple or two sharers. There are some older ex-council flats in the area along with some that have been newly-built in the past 5-10 years. This block is a little older than that, being built in 2001.

Everything looks original from 18 years ago, meaning it's getting to the stage of needing a refurbishment to the kitchen & bathroom, although it seems to have been kept in decent condition given its age. It could definitely do with re-decoration and re-carpeting though.

What has changed since 2001 is the price! The first and current owner of the flat paid £99,950 when it was new 18 years ago, meaning it has more than doubled in that time to sit at it's current asking price of £204,950 (which was reduced from £210,000 when it was first marketed around a month ago). I mentioned in this week's article that flats underperformed the market as a whole, and so it is with this flat - in the same time the average house in Chichester has risen 130%, with flats sitting up 107% (so pretty much in line with how this particular flat has fared).

Interestingly there are already tenants in the property paying £750 per month. This is a little low for the property, but could see a void-free rental return of 4.4% from day one. Alternatively, the advert mentions this the rental figure being nearer to £800pcm if the property was re-decorated. £795pcm is the going rate for a flat in this block, so assuming that's the case it could provide a 4.7% rental return based on paying the full asking price if it were let to its full potential.

Along with the normal caveats when it comes to leasehold properties about checking the lease, ground rent and service charges, also bear in mind that this flat is all-electric. With gas central heating seen as the norm (although it's set to be banned in the next decade!) there is a chance this flat could be left behind in regards to the amenities it offers to tenants and future homeowners.

The property is on the market with Leaders and full details can be found on Rightmove via the following link:
https://www.rightmove.co.uk/property-for-sale/property-82211255.html

^{_{c/o CRJ Lettings, 30B Southgate, Chichester, West Sussex, PO19 1DP}}

Welcome to the original blog about Chichester's property market.

Bringing you the latest news, information and analysis that relates specifically to the property market in Chichester.

Each week I'll feature the article I write for the Chichester Observer as well as my 'buy-to-let deal of the week': a property hand-selected by me that I feel could offer good investment potential.

I'm Clive Janes from CRJ Lettings in Chichester. I'm a landlord who continues to invest in local property as well as manage my own rental portfolio. In 2013 I setup CRJ Lettings not only to manage other landlords properties as if they were my own, but also to give some tips as to how to best go about investing in property.

If you'd like to chat about the local property market or see a potential deal and would like a second opinion, please get in touch:

01243 624 599

clive@crjlettings.co.uk