A number of landlords, who own property in Chelmsford, have made contact with me recently asking for my thoughts on the future of the buy to let market in Chelmsford. In previous articles, we have talked about Chelmsford’s history of rents, property values, tenant demand and yields; all important matters for a landlord, but we haven’t discussed the future.
Property values rose by 6.22% in the last 12 months in Chelmsford, (Nov 2014 – Nov 2015). Good news all round. When you look back at previous years, the figures show that between Dec 2013 & Dec 2014, there was a 6.37% increase, between Dec 2012 & Dec 2013 an increase of 6.12%, between Dec 2011 & Dec 2012 a increase of 0.67% and finally between Dec 2010 & Dec 2011 a decrease of 2.11%!
This is showing that for the last 3 years, the Chelmsford market has been fairly stable overall, with similar increases in value for each of the years. With demand for property still high and the levels of property coming to market not quite matching this demand, (albeit, becoming a bit more balanced than early last year, when we saw the property market rocket into the stratosphere!), the signs are indicating that this steady increase in property values in the Chelmsford area should continue for the foreseeable future.
Looking at the UK as a whole, because we can’t look at Chelmsford in just its little own bubble, the recent rapid rise in house values in some parts of the UK in the early part of the year (especially in London), along with earnings growth that remain below inflation and the possibility of an interest rate rise over the coming months, appear to have tempered housing demand. This weakening in demand has led to a modest easing in both property price growth and sales. A moderation in growth looks likely into next year as supply and demand become increasingly better balanced.
However, back to Chelmsford; Long term property values which track peaks and troughs are more helpful to landlord investors. The questions I seem to be asked on an almost daily basis by landlords are:-
“Should I sell my property in Chelmsford, or even buy another?”
“Is the time right to buy another buy to let property in Chelmsford and if not Chelmsford, where?”
“Are there any property bargains out there in Chelmsford?”
If any Chelmsford landlords, both who are with us and many who are with other Chelmsford letting agents, like to pop in for a coffee to discuss the Chelmsford property market, how Chelmsford compares with its closest rivals (Colchester, Ipswich, Brentwood etc.), and hopefully answer the three questions above.
I don’t bite, I don’t do hard sell, I will just give you my honest and straight talking opinion. Please email me at
[email protected] or call me on 01245 330500!In the meantime may I take this opportunity to wish you all a very Merry Christmas and a prosperous 2015.
