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Chelmsford Buy-to-Let Guide

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    Everything You Need to Know About Chelmsford Buy-to-Let

    The City of Chelmsford was granted city status back in 2012. The population of this Essex city currently stands at around 170,000 but is expected to grow to almost 200,000 in the next 15 years.

    As one of the newest cities in the UK, Chelmsford may not have the same clout as other cities regarding buy-to-let. While many buy-to-let investors in the UK look towards London or other major cities for property investment opportunities, could Chelmsford be one to look out for?

    Today, we’re focusing on the Chelmsford property market, covering recent property values, rental yields and breakdowns of different areas within the city.

     

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      Chelmsford aerial view

      Buy-to-Let Property Prices in Chelmsford

      The average property price in Chelmsford is £395,201, according to HM Land Registry UK House Price Index. The area has seen 3.10% yearly growth, significantly higher than the UK average price growth of 0.20%.

      In addition, HM Land Registry puts the average UK house price at £291,044, making Chelmsford 30.35% more expensive than the rest of the country.

      If we break down Chelmsford property types, investors can expect to pay (on average) £706,875 for a detached property, £433,758 for a semi-detached house, £339,487 for a terraced house, and £227,766 for a flat.

      The latest Savills Residential Property Market Forecast shows that the South East of England is expected to see 16.7% capital growth between now and 2028 – the UK’s predicted capital growth is 17.9%.

      Further reading: If you’re a non-UK resident buying UK property, you may be interested in our guide to buying property from overseas. We also have a guide to buying property as a limited company.

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      Buy-to-Let Rental Market in Chelmsford

      The Home Chelmsford Rental Market Summary puts the average rent in Chelmsford at £1,819 PCM.

      The wider South East region has an average rental cost of £1,370 PCM and boasts 10.22% price growth.

      The average UK rent is currently £1,268 PCM. The country has seen a yearly price growth of 9.56%.

      As you can see, Chelmsford has higher rental potential than the country as a whole, but property prices are significantly more expensive, giving an average rental yield of 5.52%. In contrast, the average UK rental yield is around 5.2%.

      For this reason, a Chelmsford buy-to-let investment may not be worth the property’s price, especially when other areas offer better yields for a much cheaper investment.

      There is some scope for student accommodation as the area is home to Anglia Ruskin University’s Chelmsford campus.

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      Buy-to-Let Investment in Chelmsford: Area Breakdown

      Chelmsford City Centre

      Chelmsford city centre has many terraced properties. It also has semi-detached and detached homes. The city centre has its own train stations with services to the wider Essex area and direct into London, Ipswich and Norwich. The council plans to build 2,000 new homes in this part of town over the next few years.

      Average Property Price in Chelmsford City Centre

      The average property price in CM1 is £416,242.

      The average property price in CM2 is £410,468.

      Average Rental Yield in Chelmsford City Centre

      The average rental yield in CM1 is 3.87%.

      The average rental yield in CM2 is 4.83%.

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        North Chelmsford

        Areas in northern Chelmsford include:

        • Broomfield
        • Parsonage Green

        Broomfield is a village with good transport links into Chelmsford and the northern parts of Essex. It only takes 15 minutes to reach Chelmsford by road. This is a popular suburb among people who work in Chelmsford. The Broomfield Hospital is a notable employer here.

        If you head northeast, you’ll find Beaulieu – a new suburb currently being developed. The site is located on the royal hunting grounds and will lead to 3,600 new homes, parkland, amenities and a purpose-built railway station with services to London. Beaulieu should be completed by 2028.

        Average Property Price in North Chelmsford

        The average property price in this area is £433,906.

        Average Rental Yield in North Chelmsford

        The average rental yield in this area is 3.71%.

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        East Chelmsford

        Areas in this part of Chelmsford include:

        • Chelmer Village
        • Great Baddow
        • Sandon
        • Springfield
        • Boreham

        Chelmer Village is a new community, purpose-built in the 1970s with residential properties, amenities and commercial buildings.

        Great Baddow was a small village but has since expanded to a population of roughly 13,000. The area provides access to Chelmsford city centre and the A130 and A12 roads. It commands a higher price than many other places in the area.

        Average Property Price in East Chelmsford

        The area is covered by the CM2 and CM3 postcode.

        The average property price in CM3 is £487,592.

        Average Rental Yield in East Chelmsford

        The average rental yield in CM3 is 3.23%.

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          Chelmsford street view

          South Chelmsford

          Southern Chelmsford areas include:

          • Galleyend
          • Galleywood
          • Moulsham
          • Great Seabrights
          • Widford
          • Brentwood

          Moulsham is made up of Moulsham Lodge and Old Moulsham. This is one of the largest suburbs in Chelmsford, with access to the A12 and plenty of shops, schools and other amenities.

          The separate town of Brentwood is a 15-minute commute from Chelmsford and has its own amenities. It offers access to other notable places in Essex, such as Basildon. Prices are significantly more expensive in this town.

          Average Property Price in South Chelmsford

          The average property price in CM13 is £682,367.

          The average property price in CM4 is £885,268.

          Average Rental Yield in South Chelmsford

          The average rental yield in CM4 is 1.98%.

          The average rental yield in CM13 is 2.70%.

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          West Chelmsford

          Areas in western Chelmsford include:

          • Great Oxney Green
          • Writtle
          • Melbourne

          Melbourne is a housing estate with good-value properties compared to other Chelmsford districts.

          Writtle is a village that has slowly become a part of Chelmsford’s urban area. It is a sought-after location for tenants and homeowners.

          Average Property Price in Chelmsford

          The average property price in this area is £518,102.

          Average Rental Yield in Chelmsford

          The average rental yield in this area is 4.86%.

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            Why You Should Consider a Buy-to-Let Investment in Chelmsford

            Safety and Quality of Life

            Chelmsford has previously been recognised as one of the top places to live in the UK. It also has low crime rates. These factors attract people into the area and make it a residential hotspot for those who can afford the rental prices. Chelmsford is also home to some top schools, making it an excellent place for families.

            Proximity to London

            Chelmsford is close to London and is a cheaper alternative for those who need to commute to the capital but don’t want to pay premium prices for rent. It is only 30 miles from London, and you can catch the train to Liverpool Street in under 40 minutes.

            Stansted Airport is only 30 minutes away, while convenient access to the regional road network ensures Chelmsford is a good place to live for those who travel by car.

            Good Business and Industry Prospects

            Chelmsford is home to numerous industries offering competitive salaries and sought-after career prospects. These employers are centred around science, technology and financial services.

            Major employers include:

            • BAE Systems
            • The M&G Group
            • Allianz
            • Teledyne e2v
            • RSA Group

            These employers help attract new people to the area and boost Chelmsford’s residential market.

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              Buildings

              Chelmsford New Builds

              There’s a growing demand for new builds across the country as the undersupply of available rental properties continues. Chelmsford is no exception to this, with the delivery of new homes being undertaken by both the local council and private developers.

              Chelmsford City Council has allocated land for new-build housing sites across the city. This includes regeneration sites, which will become residential hotspots in Chelmsford. They have put forward plans for new apartments, new student accommodation, and new housing.

              This shows demand for new builds in Chelmsford and potential diverse investment opportunities if private developers follow suit.

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                Construction site

                Off-Plan Property in Chelmsford

                As investing in new builds becomes more popular, it may lead to more chances to invest off-plan in Chelmsford. As new build developments are generally more expensive to invest in than older properties, off-plan has emerged as a way to acquire a new build property at a discount. Some developers also offer off-plan payment plans to make investing in new builds more financially viable. Why not read our guide on how to make money from property, it is packed full of useful resources and tips.

                With some research, it may be possible to find good off-plan deals in Chelmsford, but these kinds of investment opportunities are usually more commonly found in major cities such as London and Manchester, especially those involving buy-to-let apartments.

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                How Does Chelmsford Compare to Other UK Regions When It Comes to Buy-to-Let?

                While Chelmsford offers good property prices compared to London, house values are still significantly higher than the national average. In addition, rental yields are only slightly above average.

                With the same amount of money it costs to purchase one property in Chelmsford, savvy buy-to-let investors can purchase two properties in a city with lower property prices and better rental yields. So what is a good rental yield in 2024? find out more with the RWinvest Yield Guide.

                For instance, properties available to buy in Liverpool are much more affordable. The city has an average property price of £180,268 and an average yield of around 7% – sometimes higher depending on the postcode. Buy-to-let properties for sale in Manchester are also substantially cheaper than those in Chelmsford, with an average price of £238,461.

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                  Want to Invest in Chelmsford?

                  Chelmsford is a place where tenants can enjoy a good quality of life. The cost of living is cheaper than in nearby London, and the area is full of good schools, idyllic locales and convenient transport links to the rest of the region. However, buy-to-let investors should remember that house prices are high and rental yields are less favourable than in other cities further north.

                  Find out more about buy-to-let investment in different UK regions by taking a look at some of our latest guides:

                  Map of Chelmsford

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                  Author

                  Dale Barham

                  Dale is a property content writer at RWinvest. Keeping a close eye on the UK property market, Dale helps our readers stay informed and up to date on the latest market news and statistics.

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