Thursday 8 January 2015

Buy-to-let in Chichester returns 11.5% in 2014

This article was featured in The Chichester Observer's property section on 8th January 2015.

2014 was really a year of two halves for the property market. Like much of the country, Chichester’s property prices went into overdrive in the first six months of the year, rising by 8% between February and July. These increases came to a halt in the summer and prices flattened out for the rest of the year.
The average value of a property in Chichester is now £367,571, which is an increase of £23,197 from the figure of 12 months ago (£344,374).
This equates to a 6.7% increase, which doesn’t quite match the exuberance of London’s property market (up a staggering 17.8%) but it does compare well both nationally and locally.

What about 2015?
The pent-up demand of 12 months ago that drove prices higher seems to have faded. This, alongside the uncertainty over a possible interest rate rise and the general election in May, means that buyers could soon start to have the upper hand.
Local affordability could hold prices back, but then again I recently re-read an online article from October 2013 proclaiming Chichester as the most unaffordable city in the country…yet prices increased 14% in the following 12 months!

Is it a good time to invest?
There is still strong tenant demand for good quality rental property in Chichester, which should be the key focus for any property investment.
The average rent in Chichester is £1,465 per month. This provides a rental return of 4.8% based on the current average value of £367,571.
This, added to 2014’s 6.7% capital growth, meant that last year a buy-to-let property in Chichester provided an excellent overall return of 11.5% (better than you get in the bank!).
The recent stamp duty changes and imminent pension reforms also offer buy-to-let investors excellent opportunities to enter the market, particularly if they can do so whilst prices remain subdued.

What should I buy?
Whether you’re an existing landlord or are thinking of buying your first rental property, I would strongly suggest you seek independent advice before buying anything.
CRJ Lettings are one of the few regulated ‘lettings only’ agents in Chichester, meaning we’re well placed to advise whether the property you are considering will rent and at what price, without having a bias towards which particular property you buy or from which estate agent.
Please contact me if you are looking for a new buy-to-let, need assistance letting a property or simply want to have a chat about the local market.

Clive Janes
CRJ Lettings
www.crjlettings.co.uk
clive@crjlettings.co.uk / 01243 624 599
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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
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Location: Chichester, West Sussex, UK

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