How useful is calculating ‘£ per square foot’?

 

I am currently helping a landlord find a suitable rental property to add to his portfolio. I suggested an array of two-bedroom houses in Tangmere, which, amongst other things, I highlighted as offering excellent value when considering their ‘£ per square foot’. The landlord was a little baffled as to what this was and why it was important. 

I explained that £ per square foot is one of the metrics I always use when analysing a potential property purchase (property price divided by total square footage of the property) as it gives an idea of the value for money you are getting.

Obviously, you have to consider the quality of the ‘square foot’ you are calculating i.e. an immaculate property in the best part of town will rightly cost more on a square foot basis than a rundown shack in a less desirable area.

When comparing similar homes in the same neighbourhood though, it can be a good gauge as to how much you should be paying for a particular property. Most estate agents will just talk about the number of bedrooms as an indicator of size, but this is an unfair comparison when a large bedroom has been split in two or a living room has been redesignated as a ‘bedroom’.

It can also become a powerful negotiation tool. Being armed with the knowledge of comparable properties is one thing, but the £ per square foot metric brings a level of objectivity to negotiations (although it does ignore garden size). 

Back to the search at hand…

There are currently four traditional ‘two-up two-down’ houses in Tangmere, all with a garage and within 500 yards of one another. They are priced at £249,500, £259,950, £270,000 and £300,000.

Based on that, it seems pretty obvious which one to plump for right? This is where my trusty £ per square foot calculation comes in handy.

The ‘cheapest’ of the two-bed houses would be a decent buy at £249,500; and with a footprint of 605 square feet means it would cost £412 per square foot.

Spending £10,450 more will get you an additional 50 square feet, bringing the overall cost down to £397 per square foot.

The £270,000 option is the smallest of them all (at 588 square feet). That equates to £459 per square foot, placing it bottom of the pack when considering ‘bricks for your buck’.

The most expensive of the four (priced at £300,000) is also the biggest thanks to the addition of a 90 square foot conservatory. Whilst conservatory space is normally less ‘valuable’ than original house space (traditional conservatories are cheaper to add on than bricks and mortar), this one warrants using its total 745 square feet when calculating a cost of £403 per square foot.

The eagle-eyed amongst you will note the most expensive house is NOT the outright cheapest when it comes to £ per square foot (going against the narrative I was surely spinning). But, when you factor in each property’s condition and the works required to bring all four houses up to an immaculate standard, you soon realise it does in fact warrant the (small) extra expense when using this metric. 

Furthermore, this is where I believe those who are ‘in the know’ could use the traditional headline figures to work for them. Give it a little time and, having been overlooked as ‘expensive’, I suspect a price reduction is likely before it eventually sells. 

Also, do you think it will be easier to negotiate the price of the already ‘cheap’ two-bed houses downwards, or do you think it will be easier to state the fact that, at £300,000, this one seems pretty pricey considering you can get a similar two-bed house round the corner (albeit in need of some work) for £50,000 less? 

By using this knowledge to your advantage, I think you could end up bagging a bit of a bargain by getting the best of the comparable properties on offer for a better price; ultimately meaning that it would become the cheapest on a ‘£ per square foot’ basis.

If you are thinking of buying a rental property and would like me to crunch the numbers on it to ensure you are maximising your investment, please get in touch.

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Landlords - what you should check before arranging a viewing

Demand for rental property is at record highs, with literally dozens of prospective tenants wanting to view and snap up a property within hours of it being marketed. A recent house I listed had over 50 enquiries within 48 hours; but clearly it can only be let once! Processes therefore need to be put in place to avoid wasting the time of both yourself and some of the interested tenants who either won’t be suitable for the property or will find that the property is not suitable for them.

The first port of call is to understand who will be living at the property, as there may be restrictions on the property’s usage from both a legal and/or practical perspective. For example, I recently had two couples and a friend wanting to share a three-bedroom house. Housing five adults would mean more wear and tear on the property than many of the other potential applicants but, even more importantly, it would mean the landlord having to apply for an HMO license from the council (at a cost of £1,422!). Conversely, I had two friends wanting to rent a two-bedroom apartment; not a problem I said, but are you happy with the second bedroom only being a single? They weren’t, and thus checking this saved me and them the bother of viewing a flat that wasn’t appropriate for their needs.

You should also speak to the tenants about their financial situation; doing so now will save conducting a viewing with tenants who might fall in love with a property, only to find they can’t pass the referencing. You should ask whether they have any credit issues that might affect their application, along with understanding their income to ensure it passes the affordability criteria set out by referencing agents (typically requiring an annual household income of 30 times the monthly rent). If an issue is identified, you could consider whether an alternative solution can be found, such as having a guarantor or for them to pay rent upfront.

Finally, understanding the tenants’ situation is often useful. If the property is vacant and therefore available to rent immediately, it is beneficial to find tenants who can move in as promptly as possible. On the other hand, if the property is not ready to move into for a couple of months, then it’s little good showing it to someone who needs to move within a fortnight! You may also discover that the prospective tenants are only looking to rent for a short period of time, which may not fit with your preference for a long-term tenancy.

All being well, I then send the prospective tenants a video walkthrough of the property, which is recorded from a first-person perspective as if they were viewing the property (including commentary). This shows far more than a description, photographs and floorplan can do alone, and helps to ensure the property is suitable for them. This has greatly cut down the number of viewings whereby the prospective tenants weren’t already chomping at the bit to take the property (saving everyone’s time).

This all means by the time I’m viewing a property with potential tenants it is highly likely that they will want the property (assuming it matches the video) and that I will want to, and be able to (from a referencing point-of-view) rent it to them.

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How much does a bedroom cost in Chichester?

Many first-time buyers will start out with a small ‘starter’ home, which is both suited to their needs and matches their modest earnings at the beginning of their careers. But as you get older there’s a tendency for extra possessions to pile up and for extra people to emerge in your life! This made me think; how much is a bedroom in Chichester and how much does it cost to climb the property ladder?

Let’s start with a one-bedroom property (typically a flat). The average price for one of these in Chichester is £200,000. As many will appreciate, the first step is often the hardest and that’s no exception when it comes to buying a property. The income and deposit you’ll require to afford even the most modest of homes in Chichester is probably the greatest barrier to getting on the property market.

Once you do though, and you hopefully rise through the ranks in your chosen career whilst growing your nest, the increase in price to afford an extra bedroom becomes a little easier at each rung of the ladder (in percentage terms).

The average two-bedroom property in Chichester will cost you £320,000 - a premium of £120,000 (60%) compared to a one-bedroom home.

The average three-bedroom property in Chichester will cost you £450,000 - a premium of £130,000 (41%) compared to a two-bedroom home.

The average four-bedroom property in Chichester will cost you £625,000 - a premium of £175,000 (39%) compared to a three-bedroom home.

Of course, this price increase isn’t just for an extra ‘bedroom’. As the number of bedrooms grow, so should the size of the other rooms throughout the house, as well as the outside space and amenities e.g. garden/garage/driveway.

It does however demonstrate that it’s the first couple of steps that are the toughest on the property ladder, which is why it’s common that government policies and incentives focus primarily on first-time buyers. Having said that, bear in mind that the need for an additional bedroom affects the ‘upsizers’ at a time when the financial strain (a new child being the most common) is often at its greatest.

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Landlords: is it time to increase the rent?

I should stress that I don’t see it as ‘the norm’ to increase the rent as a matter of course. I particularly dislike tenancy agreements that have onerous automatic rent increase clauses built into them. In fact, I would far rather reward a tenant by not increasing the rent (assuming they have paid on time each month and looked after the property), thus retaining them for a longer period.

Unfortunately, an increase in legislation and the negative impact from changes in taxation towards landlords has altered my view on this in recent years. Adding to that are the significant interest rate increases over the past year (some landlords have seen their buy-to-let mortgage payments triple!) alongside the fact that rents on new tenancies are soaring; all of which makes it hard to justify not increasing the rent at the moment. There are, however, rules about how this is done, as well as the need for compassion to navigate what is a sensitive subject.

The rent cannot be increased on tenancies that are still within their ‘fixed-term’ period (normally 6 or 12 months) without the tenant’s agreement. For those that fall outside this, the rent can be increased by the landlord by using a ‘Section 13’ document with at least one month’s notice (although I typically give 6-8 weeks’ notice to ease the process). The rent cannot then be increased for at least another year (unless the tenant specifically agrees to it).

A rent review will assess what the market rate is for the property by analysing what is currently on the market (just like you would when you initially let a property). You may also consider the tenant’s conduct throughout the tenancy, their payment record and affordability. Showing comparable properties to tenants can soften the blow of a rent increase if they are unaware of the going rate, especially when rents have increased quite a lot. Any increase should be ‘fair and realistic’ and ideally made in agreement with the tenant, otherwise they can refuse the increase and ask a tribunal to set the rental figure.

Tenants should be aware though that these rent tribunals can set the rent at a higher amount than the landlord had originally requested! This is why tenants also need to be realistic when subjected to a rent increase if it is in line (or better than) the market rate for the property. In one such case in May of this year, a landlord had asked to up the rent of their property in Surrey from £1,260pcm to £1,300pcm. The tenant disputed this and took it to the rent tribunal…who set the rent at £1,540pcm!

I typically recommend meeting tenants half-way in regards to the amount of any rent increase i.e. keeping it below market value so they have an incentive to stay in the home they have looked after and paid rent for throughout their tenancy. Ultimately though, this is the landlord’s decision; some will never increase rents (thus not ‘rocking the boat’ so tenants stay longer; aware of the re-let costs and possible need for refurbishment if the current tenant were to leave), some want the maximum rent at all times (likely seeing a higher turnover of tenants / risk of affordability issues or resentment from tenants arising), whilst others take the middle ground. 

The average rent in Chichester is currently £1,300pcm, which is an increase of 8.3% compared to the £1,200pcm average figure from one year ago. This is slightly below the average increase seen across the UK, which has been 10.4% in the last 12 months (with UK rents averaging £1,229pcm overall / £1,027pcm excluding London).

Despite quickly rising prices, rental homes are continuing to let at speed and many landlords are still being met with long queues of prospective tenants wanting to view and rent their property. As market rents have increased greatly, many landlords are taking the opportunity to offset some of the financial impact from increasing legislation, taxation and interest rates by passing on rent increases to current tenants. The sad reality for these tenants is that if they don’t want to pay the increase there are a number of prospective tenants chomping at the bit to move in (who will perhaps pay even more for the property!). 

If you’re a landlord and would like a ‘rent review’ for one of your properties, or if you’re a tenant facing a rent increase and would like an impartial opinion on its validity, please get in touch and I’ll be happy to provide assistance.

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How much does a bedroom cost in Chichester?

Many first-time buyers will start out with a small ‘starter’ home, which is both suited to their needs and matches their modest earnings at the beginning of their careers. But as you get older there’s a tendency for extra possessions to pile up and for extra people to emerge in your life! This made me think; how much is a bedroom in Chichester and how much does it cost to climb the property ladder?

Let’s start with a one-bedroom property (typically a flat). The average price for one of these in Chichester is £199,950. As many will appreciate, the first step is often the hardest and that’s no exception when it comes to buying a property. The income and deposit you’ll require to afford even the most modest of homes in Chichester is probably the greatest barrier to getting on the property market.

Once you do though, and you hopefully rise through the ranks in your chosen career whilst growing your nest, the increase in price to afford an extra bedroom becomes a little easier at each rung of the ladder (in percentage terms).

The average two-bedroom property in Chichester will cost you £320,000 - a premium of £120,050 (60%) compared to a one-bedroom home.

The average three-bedroom property in Chichester will cost you £450,000 - a premium of £130,000 (41%) compared to a two-bedroom home.

The average four-bedroom property in Chichester will cost you £600,000 - a premium of £150,000 (33%) compared to a three-bedroom home. 

Of course, this price increase isn’t just for an extra ‘bedroom’. As the number of bedrooms grow, so should the size of the other rooms throughout the house, as well as the outside space and amenities e.g. garden/garage/driveway.

It does however demonstrate that it’s the first couple of steps that are the toughest on the property ladder, which is why it’s common that government policies and incentives focus primarily on first-time buyers. Having said that, bear in mind that the need for an additional bedroom effects the ‘upsizers’ at a time when the financial strain (a new child being the most common) is often at its greatest.

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Landlords - what you should check before arranging a viewing

Demand for rental property is at record highs, with literally dozens of prospective tenants wanting to view and snap up a property within hours of it being marketed. A recent house I listed had over 50 enquiries within 48 hours; but clearly it can only be let once! Processes therefore need to be put in place to avoid wasting the time of both yourself and some of the interested tenants who either won’t be suitable for the property or will find that the property is not suitable for them.

The first port of call is to understand who will be living at the property, as there may be restrictions on the property’s usage from both a legal and/or practical perspective. For example, I recently had two couples and a friend wanting to share a three-bedroom house. Housing five adults would mean more wear and tear on the property than many of the other potential applicants but, even more importantly, it would mean the landlord having to apply for an HMO license from the council (at a cost of £1,333!). Conversely, I had two friends wanting to rent a two-bedroom apartment; not a problem I said, but are you happy with the second bedroom only being a single? They weren’t, and thus checking this saved me and them the bother of viewing a flat that wasn’t appropriate for their needs.

You should also speak to the tenants about their financial situation; doing so now will save conducting a viewing with tenants who might fall in love with a property, only to find they can’t pass the referencing. You should ask whether they have any credit issues that might affect their application, along with understanding their income to ensure it passes the affordability criteria set out by referencing agents (typically requiring an annual household income of 30 times the monthly rent). If an issue is identified, you could consider whether an alternative solution can be found, such as having a guarantor or for them to pay rent upfront.

Finally, understanding the tenants’ situation is often useful. If the property is vacant and therefore available to rent immediately, it is beneficial to find tenants who can move in as promptly as possible. On the other hand, if the property is not ready to move into for a couple of months, then it’s little good showing it to someone who needs to move within a fortnight! You may also discover that the prospective tenants are only looking to rent for a short period of time, which may not fit with your preference for a long-term tenancy.

All being well, I then send the prospective tenants a video walkthrough of the property, which is recorded from a first-person perspective as if they were viewing the property (including commentary). This shows far more than a description, photographs and floorplan can do alone, and helps to ensure the property is suitable for them. This has greatly cut down the number of viewings whereby the prospective tenants weren’t already chomping at the bit to take the property (saving everyone’s time).

This all means by the time I’m viewing a property with potential tenants it is highly likely that they will want the property (assuming it matches the video) and that I will want to, and be able to (from a referencing point-of-view) rent it to them.

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Is Chichester or Bognor Regis best for buy-to-let?

I was recently called by a husband and wife who were considering buying a rental property for the first time. I was happy to give my thoughts on the market, for which one of the first things they asked was where they should buy. 

Whilst my typical answer to this is “it depends”, it is true that I am an advocate of buying locally to where you live; for both ease of management and for being able to use your local knowledge of the property market to avoid buying a dud. With this in mind, their next question was which area was best locally; Chichester or Bognor Regis?

Whilst the average property in Chichester costs £472,708, in Bognor Regis the average home is a more ‘affordable’ £370,580. Isn’t it amazing that a fifteen-minute journey down the A259 could save you 22% off the price of a home!

With the average rent in Chichester standing at £1,295 per month, property is also more ‘affordable’ for tenants in Bognor Regis; which has an average rent of £1,100 per month.

The above figures translate into a projected average yield of 3.3% in Chichester and 3.6% in Bognor Regis. Both these figures seem rather low though, as rental properties tend to be purchased towards the lower end of the market, so you can expect a slightly higher return than this. The logic holds though: property in Bognor Regis will require less money upfront and provide a better rental return than property in Chichester. However, it’s not all about the yield when investing in property; next we should look at the increase in property prices over time from both areas.

In this case, Chichester was the winner up until the pandemic. Before then, whether it was in the short, medium or long-term, property prices in Chichester generally rose by a greater amount than in Bognor Regis. 

That’s why I often say if you’re looking for consistently-proven strong capital growth, Chichester is great; whereas if you’re seeking income immediately from your property, it could be wise to look towards Bognor Regis.

As mentioned though, since the pandemic something strange has happened. Whilst property prices have increased a solid 23% in Chichester since March 2020, they have leapt by nearly a third in Bognor Regis! Could the tide be turning towards Bognor Regis, or have prices there got a little carried away since the ‘pandemic property boom’?

The above shows how important it is to consider all the facts and figures available to you when planning to invest in property. A key factor in deciding where to invest though will be what you want to achieve i.e. a better rental income now, or more proven capital growth in the long run (as sensible landlords know that, unfortunately, it’s rare to find both). 

If you’re thinking of buying a rental property and would like some impartial advice as to which area and property might suit you best, please give me a call and I’ll be happy to give you a free initial buy-to-let investment consultation.  

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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 clive@crjlettings.co.uk 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:

• Follow The Buy-To-Let Property Investment Market in Chichester
• Chichester Property Market LinkedIn Page for Clive Janes
• CRJ Letting Agents Chichester Facebook Page
• CRJ Letting Agents Chichester Twitter Page
• Chichester Investment Property Management Specialist CRJ Letting Agents Website

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How much does a bedroom cost in Chichester?

Many first-time buyers will start out with a small ‘starter’ home, which is both suited to their needs and matches their modest earnings at the beginning of their careers. But as you get older there’s a tendency for extra possessions to pile up and for extra people to emerge in your life! This made me think; how much is a bedroom in Chichester and how much does it cost to climb the property ladder?

Let’s start with a one-bedroom property (typically a flat). The average price for one of these in Chichester is £210,000. As many will appreciate, the first step is often the hardest and that’s no exception when it comes to buying a property. The income and deposit you’ll require to afford even the most modest of homes in Chichester is probably the greatest barrier to getting on the property market.

Once you do though, and you hopefully rise through the ranks in your chosen career whilst growing your nest, the increase in price to afford an extra bedroom becomes a little easier as time goes by.

The average two-bedroom property in Chichester will cost you £325,000 - a premium of £115,000 (55%) compared to a one-bedroom home.

The average three-bedroom property in Chichester will cost you £475,000 - a premium of £150,000 (46%) compared to a two-bedroom home.

The average four-bedroom property in Chichester will cost you £610,000 - a premium of £135,000 (28%) compared to a three-bedroom home.

The above shows that whilst the outright cost is relatively similar, with the jump from a two-bed to three-bed home costing the most in monetary terms, the comparative growth in percentage terms lessens with each step up the ladder.

Of course, this price increase isn’t just for an extra ‘bedroom’. As the number of bedrooms grow, so should the size of the other rooms throughout the house, as well as the outside space and amenities e.g. garden/garage/driveway.

It does however demonstrate that it’s the first couple of steps that are the toughest on the property ladder, which is why I feel it’s right that government policies and incentives focus primarily on first-time buyers. Having said that, it would be nice if they also considered that the need for an additional bedroom effects the ‘upsizers’ at a time when the financial strain (a new child being the most common) is often at its greatest.

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This article was featured in...

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How much does a bedroom in Chichester cost?

Many first-time buyers will start out with a small ‘starter’ home, which is both suited to their needs and matches their modest earnings at the beginning of their careers. But as you get older there’s a tendency for extra possessions to pile up and for extra people to emerge in your life! This made me think; how much does it cost to climb the property ladder in Chichester, with each additional bedroom in the property? 

Let’s start with a one-bedroom property (typically a flat). The average price for one of these in Chichester is £200,000. As many will appreciate, the first step is often the hardest and that’s no exception when it comes to buying a property. The income and deposit you’ll require to afford even the most modest of homes in Chichester is probably the greatest barrier to getting a foot on the first rung of the property ladder.

Once you do though, and you hopefully rise through the ranks in your chosen career whilst growing your nest, the increase in price to afford an extra bedroom becomes a little easier as time goes by.

The average two-bedroom property in Chichester will cost you £300,000 - a premium of £100,000 (50%) compared to a one-bedroom home.

The average three-bedroom property in Chichester will cost you £425,000 - a premium of £125,000 (42%) compared to a two-bedroom home.

The average four-bedroom property in Chichester will cost you £545,000 - a premium of £120,000 (28%) compared to a three-bedroom home.

The average five-bedroom property in Chichester will cost you £650,000 - a premium of £105,000 (19%) compared to a four-bedroom home.

The above shows that whilst the outright cost is relatively similar, with the jump from a two-bedroom to three-bedroom home costing the most in monetary terms, the comparative growth in percentage terms lessens with each step up the property ladder.

Of course, this price increase isn’t just for an extra ‘bedroom’. As the number of bedrooms grow, so should the size of the other rooms throughout the house, as well as the outside space and amenities such as a garden, driveway and garage.

It does however demonstrate that it’s the first few steps that are the toughest on the property ladder, which is why I feel it’s right that government policies and incentives focus primarily on first-time buyers. Having said that, it would be nice if they also considered that the need for an additional bedroom affects the ‘upsizers’ at a time when the financial strain (a new child being the most common) is often at its greatest.

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This article was featured in...

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Landlords - what you should check before arranging a viewing

Demand for rental property seems to be at record highs, with literally dozens of prospective tenants wanting to view and snap up a property within hours of it being marketed. A recent house I listed had over 50 enquiries within 48 hours; but clearly it can only be let once! Processes therefore need to be put in place to avoid wasting the time of both yourself and some of the interested tenants who either won’t be suitable for the property or will find that the property is not suitable for them.

The first port of call is to understand who will be living at the property, as there may be restrictions on the property’s usage from both a legal and/or practical perspective. For example, I recently had two couples and a friend wanting to share a three-bedroom house. Housing five adults would mean more wear and tear on the property than many of the other potential applicants but, even more importantly, it would mean the landlord having to apply for an HMO license from the council (at a cost of £1,098!). Conversely, I had two friends wanting to rent a two-bedroom apartment; not a problem I said, but are you happy with the second bedroom only being a single? They weren’t, and thus checking this saved me and them the bother of viewing a flat that wasn’t appropriate for their needs. 

You should also speak to the tenants about their financial situation; doing so now will save conducting a viewing with tenants who might fall in love with a property, only to find they can’t pass the referencing. You should ask whether they have any credit issues that might affect their application, along with understanding their income to ensure it passes the typical affordability criteria set out by referencing agents. If an issue is identified, you could consider whether an alternative solution can be found, such as having a guarantor or for them to pay rent upfront.  

Finally, understanding the tenants’ situation is often useful. If the property is vacant and therefore available to rent immediately, it is beneficial to find tenants who can move in as promptly as possible. On the other hand, if the property is not ready to move into for a couple of months, then it’s little good showing it to someone who needs to move within a fortnight! You may also discover that the prospective tenants are only looking to rent for a short period of time, which may not fit with your preference for a long-term tenancy.

All being well, I then send the prospective tenants a video walkthrough of the property, which is recorded from a first-person perspective as if they were viewing the property (including commentary). This shows far more than a description, photographs and floorplan can do alone, and helps to ensure the property is suitable for them. This has greatly cut down the number of viewings whereby the prospective tenants weren’t already chomping at the bit to take the property (saving everyone’s time and helping to keep people safe during the pandemic). 

This all means by the time I’m viewing a property with potential tenants it is highly likely that they will want the property (assuming it matches the video) and that I will want to, and be able to (from a referencing point-of-view) rent it to them. 

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This article was featured in...

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What’s the cost of a bedroom in Chichester?

 

Many first-time buyers will start out with a small ‘starter’ home, which is both suited to their needs and matches their modest earnings at the beginning of their careers. But as you get older there’s a tendency for extra possessions to pile up and for extra people to emerge in your life! This made me think; how much is a bedroom in Chichester and how much does it cost to climb the property ladder?

Let’s start with a one-bedroom property (typically a flat). The average price for one of these in Chichester is £195,000. As many will appreciate, the first step is often the hardest and that’s no exception when it comes to buying a property. The income and deposit you’ll require to afford even the most modest of homes in Chichester is probably the greatest barrier to getting on the property market.

Once you do though, and you hopefully rise through the ranks in your chosen career whilst growing your nest, the increase in price to afford an extra bedroom becomes a little easier as time goes by.

The average two-bedroom property in Chichester will cost you £299,950 - a premium of £104,950 (54%) compared to a one-bedroom home.

The average three-bedroom property in Chichester will cost you £425,000 - a premium of £125,050 (42%) compared to a two-bedroom home.

The average four-bedroom property in Chichester will cost you £535,000 - a premium of £110,000 (26%) compared to a three-bedroom home.

The average five-bedroom property in Chichester will cost you £650,000 - a premium of £115,000 (21%) compared to a four-bedroom home.

The above shows that whilst the outright cost is relatively similar, with the jump from a two-bed to three-bed home costing the most in monetary terms, the comparative growth in percentage terms lessens with each step up the ladder.

Of course, this price increase isn’t just for an extra ‘bedroom’. As the number of bedrooms grow, so should the size of the other rooms throughout the house, as well as the outside space and amenities e.g. garden/garage/driveway.

It does however demonstrate that it’s the first couple of steps that are the toughest on the property ladder, which is why I feel it’s right that government policies and incentives focus primarily on first-time buyers. Having said that, it would be nice if they also considered that the need for an additional bedroom effects the ‘upsizers’ at a time when the financial strain (a new child being the most common) is often at its greatest.

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How much of Chichester can you buy with £105million?

Congratulations to the Selsey couple who won an astonishing £105million on the EuroMillions. Top on the list of purchases for many lottery winners will be a new home, which got me to thinking - with £105m in their pocket, what could they buy if they wanted to remain in or around Chichester?

Chichester is of course regarded as an expensive place to live, with the most expensive parts being the surrounding areas of Bosham, Itchenor and West Wittering. Even so, the most expensive house ever sold within five miles of Chichester was ‘only’ £4.825m. This was a stunning five-bedroom detached property located in Spinney Lane in Itchenor, yet it still wouldn’t make much of a dent in the lucky couple’s winnings!


They could always buy the whole street! The properties on Spinney Lane have the highest average value of any street in the Chichester district, with each of its 31 homes being worth an average of £2,687,472. Even so, it means the jackpot winners could afford to buy them all and not have to put up with any neighbours if they wanted, at a grand cost of £83.3m.

If they’d rather go for quantity, they could always opt for the street with the most homes on it; which in Chichester is Stockbridge Road. It would take £85.1m to buy the entire street based on each property being worth an average of £251,737. That makes Stockbridge Road the most expensive street overall in the Chichester District, yet would still leave the lucky pair with just shy of £20m to cover the maintenance on the 338 properties they’d just bought!

If we look at Chichester as a whole, there are 57,664 properties in the District with an average value of £429,731. This suggests there’s a total of £24,780,008,380 worth of property, so the jackpot could be spent on buying 0.004% of the whole of Chichester’s housing stock! That equates to being able to purchase a total of 244 ‘average’ Chichester properties.

So, whilst it seems you can’t buy much of Chichester even with £105million, it’s amazing to think that the most expensive house ever sold in the District is practically loose change for the newly minted couple. There is certainly an exciting world of possibilities with such a substantial sum of money and I’m sure many of you will have dreamt about how you could have spent it.

If you’re thinking of buying up part of Chichester (albeit on a slightly smaller scale than I mentioned above) feel free to give me a call and I’ll be happy to discuss what particular property might provide you with the best returns.

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This article was featured in...

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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 clive@crjlettings.co.uk 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:

• Follow The Buy-To-Let Property Investment Market in Chichester
• Chichester Property Market LinkedIn Page for Clive Janes
• CRJ Letting Agents Chichester Facebook Page
• CRJ Letting Agents Chichester Twitter Page
• Chichester Investment Property Management Specialist CRJ Letting Agents Website

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Where will all the new homes in Chichester go?

Chichester has faced a target of delivering 435 new homes a year, which has been exceeded in the past three years; in 2015/16 553 were built, in 2016/17 440 were built and in 2017/18 648 were built. This isn’t enough for the powers that be however, as the local plan (due to be released in 2020) is likely to set out an annual target of building 550-650 new homes. So, where are all these new homes going to go?

It may surprise you to hear that only 8.8% of England is actually built on, with the majority (72.9%) being used as farmland, 3.8% being designated as ‘green urban’ (that’s parks, gardens and recreational space) and the other 14.5% remaining natural. So, all the houses, roads, shops, businesses, airports and other buildings take up less than 10% of the nation - which is quite amazing when you think about it.

Here in Chichester we’re less than half as densely urbanised than most of England, as we benefit from just 4% of the District being built upon. A further 2% of land is green urban, 69% farmland and, not surprisingly for an area that includes the South Downs, a higher-than-average 25% of our land remains natural.

I fear this abundancy of open space is why central government sees Chichester as an easy target to take on more housing. The higher end of the revised target (650 homes a year) would equate to more than 7,000 additional homes being built by 2030, which is a significant increase on the 50,000 or so existing properties in the Chichester District today.

So where are we going to build these new homes? It’s all well and good for central government to push for these schemes, but the knock-on effect is the strain upon local infrastructure i.e. the roads, public transport, schools, hospitals and other public services that need to be enhanced and added to.

The development at Whitehouse Farm is set to be the biggest in Chichester’s history, with 1,600 new homes planned. And farmland is also under threat in Shopwhyke, Westhampnett and Tangmere. But surely all these new residents will need to eat, so continuously building on farmland isn’t sustainable in the long-run. Unless housing is to be more densely built (think taller but smaller new-build units, with a lack of outdoor space) it seems the quarter of our District’s land that remains ‘natural’ could be under threat.

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(This article was featured in the Chichester Observer's property section on March 7, 2019) Clive Janes, CRJ Lettings

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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 clive@crjlettings.co.uk 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:

• Follow The Buy-To-Let Property Investment Market in Chichester
• Chichester Property Market LinkedIn Page for Clive Janes
• CRJ Letting Agents Chichester Facebook Page
• CRJ Letting Agents Chichester Twitter Page
• Chichester Investment Property Management Specialist CRJ Letting Agents Website

^{_{c/o CRJ Lettings, 30B Southgate, Chichester, West Sussex, PO19 1DP}}

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Ten years on from Chichester’s property price low

Not that anyone knew it at the time, but ten years ago marked the ‘credit crunch’ induced market low for property prices in Chichester, having faced 17 months of falling prices.

Property prices peaked in Chichester at £291,021 in October 2007, just weeks after Northern Rock had faced queues of people outside its doors seeking to withdraw their money; an event which, in hindsight, marked the beginning of the financial crisis.

In the following 17 months, property prices in Chichester fell 21% to sit at £228,594 in March 2009, before rebounding 17% in the following year and 70% overall in the decade since, to sit at today’s average sale price of £388,261.

Whilst prices in Chichester fell every month between October 2007 and February 2008, it at first appeared the market had stabilised as prices increased again, getting close to the previous peak in August 2008 with prices rising back to £289,147. September 2008 - March 2009 was rough though, with the average home in Chichester losing over £60,000 in those short six months - that’s £332 per day!

It’s interesting to compare Chichester’s property price movements during this time compared to the UK as a whole. Whilst UK house prices peaked at a similar time (September 2007), fell a similar amount from peak to trough (19%) and bottomed out at the same time (March 2009), they have ‘only’ increased by 49% since, which is much less than in Chichester. And whilst Chichester broke through its October 2007 peak by September 2012, the UK only caught itself up again in August 2014.

I would therefore argue that Chichester has proven to be more resilient through the bad times than the UK as a whole. This aligns itself with the fact that property prices in Chichester have historically increased more than the UK average; which is why I often say property in Chichester is likely to bring with it stronger capital growth in the future.

This may in part be due to fewer ‘distressed sellers’ in Chichester i.e. those who need to sell, as 41% own the home they live in without a mortgage, compared to the UK average of 31%. And with the Brexit deadline just a few weeks away and prices having fallen for the past few months both in Chichester and the UK, it may be that resilience will be the name of the game in the coming months too.

If you’d like to follow the progress of Chichester’s property market going forward, please subscribe to my weekly e-newsletter at www.tinyurl.com/ChiPropertyNews

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(This article was featured in the Chichester Observer's property section on February 28, 2019) Clive Janes, CRJ Lettings

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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 clive@crjlettings.co.uk 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:

• Follow The Buy-To-Let Property Investment Market in Chichester
• Chichester Property Market LinkedIn Page for Clive Janes
• CRJ Letting Agents Chichester Facebook Page
• CRJ Letting Agents Chichester Twitter Page
• Chichester Investment Property Management Specialist CRJ Letting Agents Website

^{_{c/o CRJ Lettings, 30B Southgate, Chichester, West Sussex, PO19 1DP}}

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