Not much!!!
Since the onset of Covid nearly four years ago, the supply of rental properties in Chichester has been at record lows, whilst demand remains stubbornly strong. This has led to a hugely competitive market for wannabe tenants, whereby you can expect dozens of enquiries within 24 hours of listing a decent and well-priced property to rent. That is despite rents increasing across the board as a result of this supply and demand imbalance.
On the face of it though, the supply of rental properties has at least ‘improved’ since a year ago (when just 82 properties were on the rental market in Chichester). But having just 98 homes on the market to rent in a city the size of Chichester is still wildly low.
More worryingly however is that demand has continued to outgrow supply, as only 38% of rental listings are still available (with 62% let agreed), whereas this time last year 49% of listings were still available (with 51% let agreed). Bear in mind that four years ago (just before Covid struck) there were 205 properties on the rental market in Chichester, of which 143 (70%) were still available.
Clearly then there’s not much choice for those seeking a property to rent, which explains why so many people are enquiring as soon as something comes to the market. Furthermore, it explains why people are willing to pay more as and when something suitable does become available. This has led to an increase in asking rents across the board, such that the current average asking rents in Chichester are:
…The average rent for a property in Chichester is currently £1,400pcm, up from £1,295pcm a year ago (an increase of 8.1%!).
The cheapest property available to rent in Chichester is a studio apartment on Oving Road, costing £650pcm. On the other end of the scale is a five-bedroom detached house in The Avenue in Summersdale, which is ‘let agreed’ having been marketed for £3,400pcm.
Why then has there been such a drastic decrease in the number of properties available to rent? Put simply, landlords are continuing to sell up. The stick of taxation and legislation has proven too much for some, with interest rate rises wiping out profits for those with buy-to-let mortgages.
I’ve written many times about the negative impact taxation and legislation changes are likely to have on the rental market; not only directly for landlords, but ironically for the tenants they are supposedly meant to help. This has now come to fruition as rental supply remains at such low levels that, unsurprisingly, rents are increasing as a result. That perfect storm is making it increasingly difficult for tenants to find a decent home at an affordable price.
To stay abreast of the availability and average prices of rental properties in Chichester, be sure to subscribe to my free fortnightly e-newsletter at www.bit.ly/chipropertynews.
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