For months now the supply of rental properties in Chichester has been at record lows, whilst demand remains stubbornly strong. This has led to a hugely competitive market for wannabe renters, whereby I am typically receiving double-digit numbers of enquires within 24 hours of listing any property to rent. That is despite rents increasing across the board as a result of this supply and demand imbalance.
One year ago, there were 148 properties available to rent in Chichester. Admittedly a year ago was a strange time as the coronavirus lockdown largely put a halt to the rental market. So, to ascertain the ‘norm’ a little better, let’s take the figure from two years ago, whereby there were 127 properties to rent in Chichester.
…Today, there are just 16 properties to rent in Chichester!!
Clearly there’s not much choice for those seeking a property to rent, which explains why so many people are enquiring as soon as something comes to the market. Furthermore, it explains why people are willing to pay more as and when something suitable becomes available. This has led to an increase in asking rents across the board, such that the current average asking rents in Chichester are:
one-bedroom flat = £750pcm
two-bedroom flat = £975pcm
two-bedroom house = £1,100pcm
three-bedroom house = £1,295pcm
four-bedroom house = £1,950pcm
Ultimately this data is a little less representative as it’s based on fewer inputs, but nevertheless….
…The average rent for a property in Chichester is currently £1,100pcm, up from £995pcm a year ago.
The cheapest property available to rent in Chichester is a studio apartment on St Pancras, costing £700pcm (including bills). On the other end of the scale is a five-bedroom detached house on Graydon Avenue in Donnington, marketed for a staggering £2,500pcm.
Why then has there been such a drastic decrease in the number of properties available to rent? Put simply, landlords are selling up. The stick of taxation and legislation has proven too much, whilst the carrots have largely fallen into tenants’ laps in the past one-two years. Many landlords are cashing in their chips, deciding that buy-to-let simply isn’t worth it anymore.
I’ve written many times about the negative impact taxation and legislation changes are likely to have on the rental market; not only directly for landlords, but ironically for the tenants they are supposedly meant to help. This has now come to fruition as rental supply is at an all-time low and, unsurprisingly, rents are increasing as a result. That perfect storm is making it increasingly difficult for tenants to find their dream home at an affordable price.
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