Thursday, 26 July 2018

Location location location…Chichester or Bognor?

I often talk with new landlords who are tackling in their minds the great debate - rental income today or (possible) capital growth tomorrow? We’re fortunate that we have both possibilities on our doorstep - Bognor Regis if you’re searching for outright income and Chichester if you’re looking for the potentially greater long-term gains.

Let me explain; the average property in Chichester is currently for sale for £349,950 compared to an average rent in the city of £895pcm. Buying and letting out the ‘average’ property at these prices would give a modest 3.1% yield.

When you compare that to Bognor Regis’ average 3.3% rental yield (based on an average price of £299,950 and average rent of £825pcm) it would seem a close-run thing as to where the better place to invest is.

‘Average’ isn’t necessarily reflective of what a landlord will purchase as a buy-to-let investment property though; most will buy towards the cheaper end of the spectrum. Put it this way, whilst the average property for sale in Chichester has 2.6 bedrooms, the average rental property has a more modest 2.3 bedrooms.

When you focus on Chichester’s two-bedroom flats (available for an average of £279,950 and renting for an average of £895pcm), the yield jumps to a more respectable, if unspectacular, 3.8%. And yet, the same calculation in Bognor Regis shows a return of 5.3% (the average two-bedroom apartment selling for £180,000 and renting for £800pcm).

My five most recent Chichester ‘buy-to-let deals of the week’ however (as featured at offered yields of between 4.6% and 5.2%. So it really comes down to what you buy and how much you pay as to what return you’re likely to see.

These headline rental return figures however ignore the fact that capital growth is often the component of property investment that provides the greatest return over the long term. Many also prefer to invest in property for capital growth rather than immediate rental returns for tax purposes.

This is where Chichester really out-trumps Bognor Regis; posting a 7.7% gain in the past year, compared to Bognor Regis’ 6.7% increase. Longer-term, this is compounded further as data shows prices have risen 39% in Chichester over the past ten years, compared to ‘just’ 27% in Bognor Regis.
For those looking to take on more risk (and workload) there are also two fundamental ways to increase your rental yield. The first is to reduce your initial spend e.g. transform a run-down property or buy ‘below market value’. The second is to increase the rent you receive e.g. rent to students or create a HMO (House of Multiple Occupation).

If you are considering investing in property and would like a free consultation as to what particular strategy and location would suit you best, please get in touch.

For more tips about buying, selling, letting and renting in Chichester, please visit

(This article was featured in the Chichester Observer's property section on July 26, 2018)

Clive Janes, CRJ Lettings

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 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

Chichester rental valuation

No comments:

Post a Comment