It seems a distant memory three years ago when we were filling in our Census Returns, but now the figures are beginning to be released, especially the statistics about property. The figures for each individual town and city have been released, so let’s look at the Chelmsford City Council figures. In the city there are 69,667 households, just over seven out of ten properties are owned, 73.2% to be precise (51,978 households) of which 23,696 don’t have a mortgage (lucky people!). Renting interests me and just over 7,621 householders rent their house (or 10.9% of households to be exact).
So, with just over a tenth of households being rented in the city, which is very much below the national average of 15.6%, where does that put Chelmsford? For renting, Chelmsford is the bottom 25% of local authorities when it comes to renting (257th out of 347 authorities) but we are in the top 20% for home ownership (66th out of 347 local authorities).
So does that mean renting isn’t booming in Chelmsford? .. Quite the opposite! Demand continues to be good from quality tenants who are prepared a pay a decent rent, but only for a decent property (if you remember a few weeks back, I said the landlords in Chelmsford, on average over 2013, achieved a total return of over 11.4% a year). If there were a glut of rental properties, there would be an over-supply of property to rent, driving prices down. In the lettings industry, it is recognised there will always be 5% of the rental market up for rent at any one time, which means there should be 381 properties to let today in Chelmsford (5% of 7,621 as mentioned above) .. I am pleased to tell you there are only 328 as I write this article!
Don’t get me wrong, tenants are more discerning in the properties they rent. Woodchip wallpaper and no central heating won’t cut the mustard anymore. However, present your Chelmsford property to a good standard and price it right and you should do very well. If you are considering becoming a landlord or are an established landlord who is thinking of buying another property to rent out in Chelmsford, please do your homework. Feel free to ask my opinion on what makes a 'decent property'. It's in my interest for you to buy the right property for you, not me. I don't charge for that opinion, because I hope you will recommend me to your friends, which in fact is the best compliment you can make.