For Colchester residents, the news last week that the Bank of England would not be raising interest rates again, was welcome, perhaps even providing some light at the end of what has felt like a long tunnel of rising costs.
For landlords wondering what that means for them in terms of average rents in Colchester and the surrounding areas and / or the likely sales value of their investment (or indeed their own homes), we have delved into the local area data
(provided by Dataloft) and put together a summary which we hope will be helpful.
A summary of this information is available on our website (updated monthly) – see “Local Market Focus”, under the “About Us” tab, or click on the link belowhttps://www.belvoir.co.uk/colchester-estate-agents/local-market-focus/
Colchester Sales Market Overview
Over the last 12 months the average sales price in Colchester was £316,845. The total value of sales was £844,730,687.
18% of sales in the past 12 months were flats, achieving an average sales price of £179,273. Houses achieved an average price of £365,163.
The highest value recorded by the Land Registry over the past 12 months was £975,000 for a flat and £1,900,000 for a house.
Maldon Road, CO3 was the location with the most sales transactions over the last 12 months.
The number of sales transactions is 25% lower than last year (compared to 18% nationally according to Forbes Advisor.
There were a total of 2,660 sales over the last 12 months.
The average sale price is 5% higher than this time last year (compared to a national fall of 4.6% cited by Halifax (7.9.23), “the biggest drop since
Average Property Values Over the Last 12 Months
According to Forbes Advisor (20.9.23) “Despite the sluggish (sales) market, the first-time-buyer sector remains relatively resilient, fuelled by record high costs in the rental market pushing more tenants onto the housing ladder.”
All of our sales so far this year, have been to first-time buyers, specifically one and two bedroom flats and houses. “Sales in this sector have consistently out- performed larger homes since February, with sales down by just 13% relative to August 2019,” Forbes continued.
According to Forbes “Almost four in 10 (36.3%) of properties on the (sales) market have had a price reduction. Price cuts on average are at 6.2% nationally, equating to £22,700 off asking prices.”
Rightmove Best Buys (as of 25.9.23)
Motor Walk – Offers In Excess of £250,000 – 2 bed freehold house with garden, garage and off street parking. Colchester North station 0.7 miles. On the market with William H. Brown (link below). Likely rent £1250 per calendar month, which equates to a 6% yield, if purchased at £250,000..
https://www.rightmove.co.uk/properties/135204032#/?channel=RES_BUY
Harvard Court – £240-£260,000 (price reduction 28.9.23) – Highwoods – 2 bed, one bath, kitchen diner and reception. Driveway parking. Freehold. No onward chain. On the market with Harris and Wood (link below). Likely rent £1250 per calendar month, which if bought at £250,000 equates to a 6% yield.
https://www.rightmove.co.uk/properties/139998176#/?channel=RES_BUY
Colchester Rental Market Overview
Average monthly rent is now £986
53% of homes let in the past 12 months were flats, achieving an average rental value of £851 per month. Houses achieved an average rent
Rents have increased over 12 months by 7%
Average age of Tenant 34 years and 21% of renters are aged between 25 and 29
