The
average value of a property in Chichester is now £394,504. This is an increase
of £12,739 from the figure of twelve months ago (£381,765).
This may
only equate to a modest 3.3% increase but don’t forget that capital growth
should be seen as the icing on the cake when it comes to buy-to-let. Landlords
would have also received rent throughout the year, which would bring their
overall return up to 7.6% based on Chichester’s 4.3% average yield.
Compare
that to the FTSE 100, which dropped 5% in 2015 and even against the broader
FTSE All-Share index, with dividends re-invested, which only returned 1.4%. Property
is also more tangible and controllable than shares, so you should avoid major
losses of capital; unlike those who invested in the worst performing FTSE 100
share last year, which fell by 75%!
2015 wasn’t
all rosy for Chichester’s property market though. It is on course to having seen
9% fewer properties sold compared to 2014 along with an average 4% reduction in
asking prices. The latest data does however show that property is selling
quicker than a year ago (remaining on the market for 115 days rather than 126
days).
What else happened in 2015 for
landlords?
A lot!
George Osborne first set out plans to slash mortgage interest tax relief in
July followed by his announcement in November that buy-to-let purchases will
face an additional 3% stamp duty from 1st April 2016.
This,
added to legislative changes and additional regulations for rental property,
caught many by surprise following the Conservatives victory in May’s general
election.
One
positive for the U.K’s two million plus landlords was the continuation of the
record low interest rates. This fuelled investment in the property market as
those with money in saving accounts became frustrated by pitiful returns. It
also led to some of the cheapest mortgage products ever seen on the market.
This coincided with the number of buy-to-let mortgages rising to 1.7 million,
which is around 16% of all outstanding mortgages.
All
this added together meant that 2015 was a profitable year to be invested in the
Chichester property market. It does appear to be the start of a change in
political landscape towards landlords though, making it even more important to
ensure you invest in the right property at the right price.
In
next week’s article I’ll be looking ahead to what 2016 has in store for
Chichester’s housing market. If you’d like to discuss the property market or
are thinking of buying, feel free to get in touch.
(This article was featured in the Chichester Observer's property section
on 14th January 2016).
Clive Janes, CRJ Lettings.
www.crjlettings.co.uk
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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:
Chichester Property Market LinkedIn Page for Clive Janes
CRJ Letting Agents Chichester Facebook Page
CRJ Letting Agents Chichester Twitter Page
Chichester Investment Property Management Specialist CRJ Letting Agents Website
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