Thursday, 12 January 2017

Is a two bedroom house in Chichester still a good buy?

A landlord of mine was recently looking to expand his portfolio and called me for a chat about whether targeting a two bedroom house in Chichester would be a good investment.

I’ve been saying for years now that two bedroom houses in Chichester are a fantastic purchase. They are in short supply (there are just 18 available for prospective tenants to choose from right now) and so rent relatively easily, which helps to minimise the landlord’s void periods.

They appeal to a range of tenants and buyers (which is important when considering your exit strategy and long-term capital growth), as they are suitable for an individual, two sharers or a young couple who can grow into the house; the second bedroom evolving from spare room/office into a baby’s bedroom.

The only problem is that everyone else seems to have cottoned on to this fact!

The cheapest two bedroom house available in Chichester a couple of years ago was £185,000, whilst now the cheapest two bedroom house in Chichester is priced at £240,000!

Meanwhile the median rent of a two bedroom house stands at £950pcm, compared to £925pcm two years ago. You can therefore see that whilst the price to buy a two bed house in Chichester has rocketed, rents have been relatively flat. This has had a negative impact on the yield you can now achieve on a two bedroom house in Chichester.

I’ve written many times about a lack of supply in Chichester of two bedroom houses (particularly affordable ones). I’ve also mentioned that I don’t expect this situation to change, as developers largely focus on building three and four bedroom homes to maximise profit.

And that’s the crux of the problem - two bedroom houses in Chichester certainly were a fantastic purchase. However, supply is now so constrained (there are just 19 two bedroom houses for sale in the whole of Chichester compared to 61 three bed houses and 35 four bedders) that it has lifted the value of all the two bedroom houses throughout Chichester.

I am concerned that the 13% rise in the average asking price for a two bedroom property in Chichester in the past year is simply too much, particularly when we consider asking prices are down 7% overall across the city in the same twelve months!

This means that whilst a two bedroom house in Chichester could still be a good buy, you need to be far more selective as to which one you choose and how much you pay.

If you’re looking at purchasing a particular rental property in Chichester and want to run it by me for a second opinion, please get in touch and I’ll be happy to help you.

Chichester observer property headline

(This article was featured in the Chichester Observer's property section on 12th January 2017) 

Clive Janes, CRJ Lettings.


If you are looking for an agent that is well-establishedprofessional 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 or call 01243 624 599.

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c/o CRJ Lettings, 30B Southgate, Chichester, West Sussex, PO19 1DP

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