Chichester property prices increase £463 per week

Over the last 12 months, average property prices in Chichester have risen from £346,357 to £370,452; an increase of £24,095, which is £463 per week!

That is greater than the UK’s average property price increase (up £189 per week) as well as other parts of West Sussex and Hampshire, including Bognor Regis (up £273 per week), Portsmouth (up £269 per week) and Worthing (up £171 per week).

Rather significantly, it is also more than the average salary local to Chichester (£30,443) when you factor tax into the equation!

The greatest percentage increase by property type in Chichester came from semi-detached houses (up 7.3%). Meanwhile, the lowest gain came from terraced houses, albeit they still managed to rise a healthy 6.3% on average. Due to their higher value though, it was detached houses that produced the greatest monetary gain for their owners; increasing by an average of £37,939, or £730 per week.

It was a similar story in Bognor Regis, albeit the gap between the best and worst performer was wider. Bognor Regis’ semi-detached houses have increased in price by an average of 6.3%, whilst their terraced homes have increased by ‘just’ 4.5%. That means Bognor Regis’ best performing property type can only match the percentage gain shown by Chichester’s worst performing property type. This again shows that property in Chichester typically outperforms Bognor Regis in regards to capital growth.

This is an important distinction when investing in property in Chichester or Bognor Regis, and is something I often discuss with new landlords. The current rental yields available in Bognor Regis are, on average, greater than they are in Chichester. Historically though this has been more than offset by the greater capital gain Chichester has seen in property prices compared to Bognor Regis. It is, however, important to determine what is most important to you (rental income or capital growth) as the two gains are both distributed and taxed differently.

Similarly it is important to consider what strategy is best if you are investing a lump sum; buying one larger property or two (or more) smaller, cheaper, properties. Typically, the more expensive the property the lower the rental return will be. Conversely though, it is the more valuable properties that generally outperform the cheaper ones in regards to increasing in value.

There is also something to be said of having fewer tenants, rental payments and boilers to keep on top of, particularly for those with a busy schedule. You do, however, run the risk of putting “all your eggs in one basket” should you encounter a void period or a problematic tenant; whereas having several smaller units helps spread this risk.

One thing that is certain is that house price increases across the board has led to greater demand for rental property from good-quality tenants who want the benefits of living in Chichester but have been priced out of the local market.

If you would like some advice about buy-to-let or need assistance letting your property, please get in touch.

(This article was featured in the Chichester Observer's property section on 27th July 2017) 

Clive Janes, CRJ Lettings.

www.crjlettings.co.uk

_______________________________

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:

Follow The Buy-To-Let Property Investment Market in Chichester

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

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

__________________________________