Chelmsford has always been something of a hotspot for buy-to-let investors.
Flats
for rent in Chelmsford, in
particular, are popular choices with landlords due to the city’s superb rail
links into London and general proximity to the capital.
Young professionals can be at Liverpool Street
in just 30 minutes from Chelmsford, while the city’s average rental price of
£1,117* is hugely attractive when compared with London’s average rents, which
topped £2,000 per month for the first time earlier this year.
Buying to let in Essex
Landlords looking for a quick win and high
rental yields tend to focus their attentions on the North West, where house
prices remain low but rents have stayed relatively high.
Liverpool, for example, was cited as having the
highest potential rental yield in the UK last year at 9.8%. A city with a huge
student population, Liverpool landlords have made hay and avoided costly void
periods by letting to the constant stream of students demanding rental homes.
So, to Essex…
The fact is, yields in the South East will never
match up to those in the north because house prices will always be higher the
closer an area is to London.
In Chelmsford’s case, yields are currently
around 3.6%. Not eye-watering, but far from disastrous either.
And it’s capital growth and rental return that
more than make up for that yield figure.
Indeed, Chelmsford has seen rapid rises in
rental return since the turn of the year – up 13%* in the CM2 area and 5%* in
the central CM1 postcode that includes properties close to Chelmsford station.
Property price growth, meanwhile, has also been
steady since the start of 2019.
In CM1, transactions since the turn of the year
have sparked a 13% jump in average sales prices against the same time 12 months
ago.
And a steady flow of sales in CM2, with
transactions down just 1.2% on the previous year, has seen that postcode’s
average price rise by 7.4%.
While the current market remains uncertain,
Chelmsford has enjoyed property price growth of 54% since 2010.
Investors snapping up property for rent in
Chelmsford who are willing to hold their properties for the long term should
continue to see sustained growth once the UK market emerges fully from its
current Brexit-induced slumber.
Two great buy-to-let opportunities in Chelmsford
So, we’ve clearly established that Chelmsford is
a great option for savvy, long-term buy-to-let investors, but what kind of
properties are currently up for sale?
This two-bedroom maisonette in Lower Anchor Street is a mere 10-minute walk to Chelmsford
station and those amazing 30-minute rail links to London.
It’s also in great shape decoratively and would
suit an investor keen on attracting a young professional or couple.
Not only that, there are no ground rent or
service charges on this shared freehold property and the lease has 991 years
remaining.
Alternatively, this spacious two-bedroom ground floor flat north
east of the city centre is close to local amenities and also boasts a long
lease and share of the freehold.
Only a mile from Chelmsford station, the
property would again suit an investor keen on securing a tenancy with a young
professional or couple.
Property management, Essex
Martin & Co Chelmsford’s team of lettings experts are perfectly
placed to manage buy-to-let properties in the city.
Indeed, we already look after a host of rental
properties in Chelmsford and the surrounding area, ensuring our landlords
remain compliant with legal obligations and looking after a multitude of happy
tenants.
If you’re thinking of investing in property in
Chelmsford, speak to one of the team today who can
provide guidance and advice on your next steps.
