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Not much!!!
For months now 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 renters, whereby I am typically receiving double-digit numbers of enquires within 24 hours of listing any property to rent. That is despite rents increasing across the board as a result of this supply and demand imbalance.
One year ago there were 148 properties available to rent in Chichester. Admittedly a year ago was a strange time as the coronavirus lockdown largely put a halt to the rental market. So, to ascertain the ‘norm’ a little better, let’s take the figure from two years ago, whereby there were 127 properties to rent in Chichester.
…Today, there are just 16 properties to rent in Chichester!!
Clearly 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 becomes available. This has led to an increase in asking rents across the board, such that the current average asking rents in Chichester are:
Ultimately this data is a little less representative as it’s based on fewer inputs, but nevertheless….
…The average rent for a property in Chichester is currently £1,100pcm, up from £995pcm a year ago.
The cheapest property available to rent in Chichester is a studio apartment on St Pancras, costing £700pcm (including bills). On the other end of the scale is a five-bedroom detached house on Graydon Avenue in Donnington, marketed for a staggering £2,500pcm.
Why then has there been such a drastic decrease in the number of properties available to rent? Put simply, landlords are selling up. The stick of taxation and legislation has proven too much, whilst the carrots have largely fallen into tenants’ laps in the past one-two years. Many landlords are cashing in their chips, deciding that buy-to-let simply isn’t worth it anymore.
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 is at an all-time low and, unsurprisingly, rents are increasing as a result. That perfect storm is making it increasingly difficult for tenants to find their dream home at an affordable price.
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4 bed house in Chichester,
£369,995, 4.9% yield
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Summary:
4 bed house in Chichester
Listed for sale on 11/05/21 @ £369,995
Rent = £1,500pcm
Yield = 4.9%
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This four-bedroom house is on the Shopwyke Lakes development in Chichester and I think offers very good value indeed. That's despite it being relatively expensive at £369,995 compared to most of my buy-to-let picks and it being virtually a new-build. Importantly though, the new-build prices on the site seem much higher than this comparably, whilst this house remains in fantastic condition.
It's also a large property, with four bedrooms (although technically the fourth bedroom is a 'study' due to its small size). And in addition to what you'd expect of a newish build, two of the bedrooms have an en-suite, whilst there's also a good-sized kitchen/diner and neat rear garden.
I'd therefore expect it to rent for £1,500pcm due to its great condition, good size and the limited rental stock on the market currently. That would equate to a very strong 4.9% rental return, from a reasonably new freehold property that requires little to no works to be ready to rent.
The property is on the market with White & Brooks and full details can be found on Rightmove via the following link: https://www.rightmove.co.uk/properties/80164575 |
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3 bedroom house in Chichester
(St Bartholomews Close)
- Close to Chichester's city centre
- Refurbished throughout
- Three double bedrooms
- En-suite, bathroom & cloakroom
- Garden & parking
- Available early June
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3 bedroom house in Bersted Park
(Lakeland Avenue)
£1,200pcm
- Built in 2016 - great condition
- En-suite, bathroom & cloakroom
- Kitchen with appliances
- Two allocated parking spaces
- Available early July
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As a letting agent, before last year it was pretty much a given that when a tenant gave their notice to leave a property the landlord would want me to re-let it. Last year though, around one in four landlords decided to sell instead of re-let when put in this position (taking advantage of a booming sales market).
Worse still was having to serve notice on four sets of perfectly good tenants, as the landlord wanted to either sell or move back into the property; something I'd only done twice in the past five years.
When marketing a property to rent, I'm having to pause adverts after 24-48 hours due to receiving so many enquiries (at least half a dozen of which are proceedable and you'd happily accept as the new tenants). Of those enquiring, around 1 in 4 are doing so because their landlord is wanting to sell the property they're currently renting.
If you are looking to rent, my tip is to create alerts on the online portals so as soon as it is listed you get notified (rather than waiting 24 hours or more for an email alert, by which time there'll already be a waiting list).
And if you are thinking of letting your property, please get in touch as everything is shifting quickly and for a strong rent as a result.
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| CLIVE JANES |
| Owner |
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01243 624599 |
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Voted 'Best Letting Agent in Chichester 2020'
with a 5/5 average rating from 149 customer reviews |
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