Monday 11 January 2021

BUY-TO-LET DEAL OF THE WEEK: 4 bed house in Chichester, £265,000, 5.0% yield

4 bed house in Chichester
Listed for sale on 18/11/20 @ £280,000
Now = £265,000
Rent = £1,100pcm
Yield = 5.0%
Last sold for £64,950 in 1999 (+308% in 22 years)

This is the cheapest four-bedroom house currently available to buy in Chichester, at a very reasonable-looking £265,000. That's a slight misrepresentation of the property's original form though, as what was a three-bed house has been reconfigured to provide four (rather small) bedrooms. Even so, the square footage you get from this freehold house in Chichester, which appears to be in very good condition, is decent for the price tag (which has been reduced from its original £280,000 asking price).

I assume the house was formerly let to students, based on the configuration and the matching bedroom furniture and single beds. It could be re-instated as one and produce a very decent return. But, like this landlord and many others, student lets are seemingly falling out of favour - both due to a supply and demand imbalance and, now, because of the coronavirus. It could therefore be time to re-configure it back to it's three-bedroom layout and rent it to young professionals or a family. Its proximity to St Richard's Hospital should ensure a steady supply of tenants and I'd expect it to rent for around £1,100pcm, which would provide a decent 5% rental return based on the current asking price. It's layout could also give rise to converting it to several bedsits or studio apartments, which could again provide a way of squeezing more rental income out of the property, if that's what you were looking for.

The current owner purchased the property just before the turn of the millennium. In that time it has quadrupled in value, from £64,950 in 1999 to £265,000 today.

The property is on the market with Cubitt & West and full details can be found on Rightmove via the following link: 

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