Chelmsford Buy-to-Let Guide

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.

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%.

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%.

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.

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.