Choosing the Right Chichester Property Investments for the Rental Market
Chichester has long been one of the most desirable UK cities, with a unique blend of cosmopolitan living, heritage and culture, access to green spaces and extraordinary natural beauty.
While the Pallants might be a trendy place to live, the rental market is all about assessing:
- What sort of tenants do you expect to market your property to?
- How will the property meet tenant’s expectations, including outside space and the number of bedrooms?
- Where to buy – looking at proximity to transport links, the city centre and the university
If you’re a landlord searching for new opportunities in the city, or a prospective new property investor, we’ve collated this article to help you narrow down your search criteria and choose outstanding rental properties.
Picking the Right Location for Chichester Rentals
There are many locations to choose from, so the best place to start is to consider how much you have to invest, whether you’re diversifying your property portfolio, and if you want to own a rental in a specific area.
- Chichester Harbour is popular with boaters and sailors, with salt marshes drawing visitors from the countryside – homes with sea views command steep prices.
- Spots close to the beaches, particularly West Wittering, are a big appeal for families or professionals relocating from London and looking for a coastal lifestyle.
- The University of Chichester and St Richards Hospital are key places for student and staff accommodation, with about 4,000 people employed by the hospital trust.
- Rolls-Royce Goodwood Plant is another important area for working tenants, with approximately 1,700 positions in manufacturing and design.
Student housing is one of the most in-demand types of rental home since Chichester and Bognor Regis campuses cater to almost 5,500 students, but of course, there is a potential for void periods outside of term time. Family homes have also grown exponentially in demand over the pandemic. However, there is a significant investment difference between central student apartments and a generous property with gardens and off-road parking.
The benefit is that the rental value of a larger property will be considerably higher than student housing, and quality tenants are likely to remain in situ for much longer.
Average Rental Property Prices in Chichester and West Sussex
Our next set of variables is around the value you’d like to invest in a Chichester rental property and the returns available.
Demand continues to outstrip supply from the local market and those looking for a more relaxed way of life within commuting distance of Portsmouth and Southampton. Therefore, you’ll find a mixture of holiday homes, weekend homes, weekday accommodation, student housing and long-term rental properties.
Prices in Chichester are at the higher end of the spectrum, so compared to the UK average house price of £288,000 (according to the ONS), locally this is:
- £420,237 as an average property price within Chichester District Council.
- Around an average cost of £437,765 for homes in the surrounding West Sussex areas.
If you want to invest at a lower value, you can consider apartments (average value of £241,430) or smaller properties outside the central areas.
Expected Rental Yields for Homes in Chichester
The average rental charge in the city is £1,291 per month, split into the following averages depending on the number of bedrooms:
- One-bedroom: £893 per month
- Two bedrooms: £1,236 per month
- Three bedrooms: £1,448 per month
- Four bedrooms: £1,567 per month
The most recent figures from LiveYield show that buy-to-let investors make yields of 4.8% on average, which is the 12th highest level of rental profits in the South East.
Finding Property for Sale in Chichester That Appeals to Tenants
If you’re new to Chichester, it’s worth taking your time to get to know the city, the areas nearby, and what sort of tenants are most likely to be looking for a property here.
Most of the city centre is deemed a conservation area. Residential properties within the city walls include stunning period cottages and grand Georgian homes, some of which are impressive residences and others divided into flats.
- The Pallants, mentioned earlier, has a North, East, South and West side and is quiet, with little traffic, offering gorgeous townhouses, often renovated to impeccable standards.
- Just north of the centre, you’ll find Parklands and Summersdale, both sought-after suburbs, and the village of Fishbourne.
- There are also several new estates built to try and cater to demand, including Graylingwell Park and the sustainable Roussillon Park.
- Lower value homes are best found to the south and east of Chichester, including Whyke and Tangmere village.
Most Chichester property investors also consider the surrounding villages, which remain hugely popular due to proximity to the city, but with the rural quality of life. Areas near the harbour are normally heavily controlled, without any new builds, including Bosham, East and West Lavant, Birdham and Itchenor.
We’d recommend reading our guide, What to Consider in a Buy to Let to revisit some of the primary features tenants are looking for.
Expert Local Advice on Marketing Chichester Rentals
Choosing the right property investment in Chichester can be tricky, with decisions to make around:
- Where in or around the city do you wish to buy?
- What type of property are you interested in?
- How much do you intend to invest?
- What sort of tenant do you expect to attract?
Our team are Chichester property experts with over three decades of local experience, helping clients purchase, sell, rent and let quality accommodation in this most beautiful part of West Sussex. Get in touch so we can work through your requirements, assess the right rental properties for you, and showcase some of the current listings available on the fast-moving market in and around Chichester.