Information is so important when making decisions on what to buy when investing in Chelmsford property. The demand for rental properties is much greater than the supply and in some circumstances; we have 4 to 5 prospective tenants for each decent property. As always demand is much greater for properties that are in good areas. We are also noticing that tenants are staying longer in their chosen property with some signing for the 3rd and 4th year. This is obviously causing problems from the supply side so we are relying on new investment Landlords to bring in new properties.
Today, I want to look at Great Baddow. By knowing the different areas of Chelmsford, I can weigh up potential hotspots in the rental market and show landlords where there could be an opportunity.
The majority of properties sold in Great Baddow during the last 12 months were terraced properties, selling for an average price of £225,700. Semi-detached properties sold for £271,200 average, detached properties are achieving around £420,300 and flats are fetching £152,300. Great Baddow has an overall average price of £267,400, which is similar in terms of sold prices to nearby Boreham at £262,900, but is cheaper than Broomfield at £301,400.
In Great Baddow, there are 6380 households. Of these, 68% are privately owned, compared to the Chelmsford average of 73%. Interestingly as well, the amount of privately rented homes is also lower at 8%, compared to Chelmsfords' 11%. The reason for the lower number of private rented homes could be due to a higher percentage of social housing. In Great Baddow social housing makes up 20%, whereas the Chelmsford average is 11%.
Properties in the Great Baddow area do also sell well; in fact 1171 properties have changed hands since 2008. However, with excellent demand from homeowners and tenants, this could be the right area to purchase your next buy to let investment. Great Baddow might not have the stellar yields of Springfield or Melbourne, but they are in the very respectable 5% range. Another good sign is that Great Baddow has matched Chelmsford in its growth in property values. Great Baddow property values have increased by 18.5% in the last 5 years