Monday, 22 February 2021

BUY-TO-LET DEAL OF THE WEEK: 2 bed house in Chichester, £280,000, 4.2% yield


Summary:
2 bed house in Chichester
Listed for sale on 03/02/21 @ £280,000
Rent = £975pcm
Yield = 4.2%
Last sold for £225,000 in 2017 (+24% in 4 years)


It seemed sensible to highlight a two-bedroom house in Chichester as this week's buy-to-let pick, seeing as my most recent article focused upon the severe lack of two-bedroom houses that are available to rent in Chichester, which has led to a jump in their rental asking prices. The problem is, the same can be said for the number of two-bed houses available to buy in Chichester.  

Of the 40 available, this is the cheapest two-bedroom house available to buy in Chichester. But at £280,000 I can't say it's a bargain, based on having sold for £225,000 just four years ago (a 24% increase since versus an average 10% rise across Chichester in that time) and a 4.2% rental return, which is decent if unspectacular for the area. But, that's the point (which I've been making about two-bed houses for years!) - supply is so lacking that prices are going up. I see no why reason why that won't continue to be the case for the next owner of this particular two-bed room house.

It is in a nice part of Chichester, just to the South of the A27, close to the canal and within walking distance of the city centre (and the Southern Gateway development, which should further improve this part of the city in the next 10-20 years). It has two double bedrooms, which makes it suitable for a wider variety of tenants compared to those with one double and one single bedroom. It seems to be in nice condition throughout, with double glazing and gas central heating, so it should be ready to rent straight away rather than requiring extensive refurbishment works first.

The property is on the market with Cubitt & West and full details can be found on Rightmove via the following link: https://www.rightmove.co.uk/properties/102439622






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