Summary:
3 bed house in Tangmere
Listed for sale on 07/01/21 @ £315,000
Rent = £1,250pcm
Yield = 4.8%
A three-bedroom house anywhere in Chichester for £250,000 is always worth a look as a potential buy-to-let 'deal'. That price is similar to the other three-bedroom houses in Charles Avenue that have sold recently, but still represents a good amount of property for the money. On this occasion the house requires redecoration and new flooring throughout, along with some works to the bathroom. The kitchen, however, has been refitted and it benefits from double glazing and gas central heating throughout, so the bigger ticket items are already in place.
Once those cosmetic works are done it will be in an excellent condition, which will make it attractive to the large number of people looking for a well-presented family home. The cheapest three-bedroom house in Chichester currently to let is up at £995pcm...but it's no longer available. The cheapest of the 11 available is £1,200pcm....that's right, there are only 11 three-bedroom houses available to rent in Chichester. The lack of supply is incredible right now, and that is translating to an increase in rents. This house then, the cheapest three-bedroom house for sale in Chichester, once updated and therefore in excellent condition will easily rent for £1,000pcm, generating a 4.8% rental return. Such is the lack of supply right now, it could probably shift at £1,100pcm without trouble either, meaning a stonking 5.3% return from a freehold property that has room to grow from a capital growth point of view too.
The current owner purchased the property for £170,000 in 2010, so has seen the value grow by 47% based on today's value of £250,000. That is slightly below Chichester's average growth of 54% over the same period and I don't see why starting from a relatively low base it can't continue that upward trend. If it does, it could produce an above-average capital return alongside a solid and strong rental income.
The property is on the market with W Welch and full details can be found on Rightmove via the following link: https://www.rightmove.co.uk/properties/77543430
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