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Areas of Chichester: Buy-to-Let Property Investment Hotspots

Robert Jones, Founder of Property Investments UK
  • by Robert Jones, Founder of Property Investments UK

    With two decades in UK property, Rob has been investing in buy-to-let since 2005, and uses property data to develop tools for property market analysis.

Chichester is one of those rarities in the property world. It’s a city where it seems almost everybody would like to live, but only the lucky few are able to. That makes Chichester potentially a top pick for property investors and in this report, we look at the best areas of Chichester for buy-to-let.

Contents

  • Why Invest in Chichester?
  • House Prices
    • House Price Growth in Chichester
  • The Price to Rent in Chichester
  • Student Accommodation
  • Property Investment in Chichester

Why Invest in Chichester?

The City of Chichester – or Chi as it is sometimes known by locals – is a historic walled city in West Sussex. It has an enviable location between the South Downs and some of the best beaches on the south coast.

Chichester is the county town of West Sussex and is set on the River Lavant. It has a population of around 26,800 and people who live in Chichester are known as Chichestrians.

Chichester has been named as one of the best cities in which to live by The Times. This recognition not only makes Chichester an attractive place to invest but also potentially lucrative when it comes time to sell your investment property."

The Times has also named the Pallants area of the city as amongst the 30 Coolest Places In Britain.

Chichester has Roman origins dating back to around 43 AD (with lots in common with the north west City of Chester). Today it is particularly known for its historic city centre, its independent shops and eateries, and its many leisure and cultural attractions all of which help to make it a smart and stylish place to live.

Thanks to all this, tourism and the visitor economy are important to the overall Chichester economy. Attractions in the Chichester area include Chichester Cathedral, the Chichester Roman Walls, the Novium Museum, Chichester Festival Theatre, the Pallant House Gallery and Fishbourne Roman Palace and Gardens.

Five miles north of Chichester, Goodwood is known for The Goodwood Estate. Goodwood Racecourse is home to world-famous events such as the annual Qatar Goodwood Festival (known as Glorious Goodwood), a key fixture in the flat horse racing season. Goodwood also hosts motoring events including the Festival of Speed and Goodwood Revival.

Chichester and in particular Chichester Harbour, which is an Area of Outstanding Natural Beauty (AONB), is a popular sailing and boating location with over 12,000 vessels moored in the harbour. The saltmarsh, mudflats and open water here also attract birdwatchers from around the country. Nearby beaches, including those at West Wittering, are some of the south coast’s best beaches.

Other important local employers include Chichester District Council and West Sussex County Council, the University of Chichester and St. Richard’s Hospital with around 4,000 staff employed by the trust. Rolls-Royce Motor Cars’ Goodwood Plant serves as the headquarters and the design, manufacturing and assembly centre for Rolls-Royce. It supports around 1,700 jobs.

Chichester is also a university city so there can be opportunities for student accommodation investors here. The University of Chichester has around 5,400 students and has campuses in Chichester and Bognor Regis. Chichester has seen the development of several purpose-built student developments in recent years and the city centre is a favourite for Chichester student accommodation.

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Colourful houses on a high street in Chichester, UK.
Colourful Houses in Chichester

House Prices

As well as demand from the local market and being a sought after place to live for those who commute to Portsmouth and Southampton, Chichester is popular for holiday homes and weekend homes including with those who live in London.

The Chichester property market has high demand and limited supply, meaning it is generally a higher-priced property area. According to the latest HM Land Registry data from November of 2023, the average house price across England is £296,812. According to the same data set, the average property price in the Chichester District Council area is £490,201 and the surrounding area is very slightly cheaper – the current average house price in West Sussex is £391,724.

West Sussex has some desirable luxury properties worth £5 million or more. However, it is possible to find much-cheaper investment properties in Chichester. According to Rightmove and Zoopla, it is possible to buy property in Chichester from around £140,000. Given the range of property prices and investment opportunities in Chichester, investors may benefit from property investment courses to help navigate this competitive market effectively.

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House Price Growth in Chichester

Date Price Date Price
2023-11-01 £490,201 2008-11-01 £281,283
2022-11-01 £478,455 2007-11-01 £290,048
2021-11-01 £431,254 2006-11-01 £265,572
2020-11-01 £408,045 2005-11-01 £252,572
2019-11-01 £379,431 2004-11-01 £253,108
2018-11-01 £395,548 2003-11-01 £219,210
2017-11-01 £374,422 2002-11-01 £199,255
2016-11-01 £358,831 2001-11-01 £162,131
2015-11-01 £348,685 2000-11-01 £148,219
2014-11-01 £321,543 1999-11-01 £122.573
2013-11-01 £297,181 1998-11-01 £105,008
2012-11-01 £294,095 1997-11-01 £96,877
2011-11-01 £284,150 1996-11-01 £85,927
2010-11-01 £285,595 1995-11-01 £83,217
2009-11-01 £272,581
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The Price to Rent in Chichester

Chichester offers landlords attractive rent potential, which reflects property prices there. Home.co.uk’s Chichester Market Rent Summary says that the average rent in Chichester (as of January 2024) is £1,485 per month.

A one bedroom property will cost an average monthly rent of £995. A two bedroom property will cost an average monthly rent of £1,395. A three bedroom property will cost an average monthly rent of £1,495. And a four bedroom property will cost an average monthly rent of £2,000.

According to the lettings agent, PMSEA, Chichester (mostly the PO18, PO19 postcodes) offers buy-to-let investors solid, average, rental yields of 4.7%.

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Student Accommodation

There are three institutions for higher learning in Chichester. First is the University of Chichester has, as of January 2024, around 4802 undergraduate students and 1067 postgraduates, who live in halls and private accommodations in the city. Second is the West Dean College of Arts, Crafts and Conservation, which is around 6 miles to the north of the city, where students live on campus. And third is Chichester College, part of the Chichester College Group, which, though primarily a college for A-Level students, also offers courses and apprenticeships for adults.

The university currently offers several options for students both on and off campus, where students will pay between £110 per week to £170 for a room, sharing facilities among, typically, six people. While these types of accommodation fit the 'student halls' there are moves to develop more modern PBSA (purpose-built student accommodation) blocks, with the 'tired and low-density student housing’ at the Bishop Otter Campus being redeveloped to provide 349 student bedrooms in three and four-storey buildings. This development should start in July 2024, although this date remains dependent on planning permissions being granted.

Despite this, whether through choice or a lack of spaces in halls, many students at the university live in private housing, in and outside of the city, that they find through estate agents that specialise in shared, student lets. As such, there are plenty of opportunities for landlords who would like to explore Chichester's student property market, both about new-built PBSA units or more traditional shared housing. After all, as is true of most cities, the demand for student accommodation continues to outstrip demand. However, landlords need to be mindful of the licensing rules in this city, where so many buildings fall into a conservation area.

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A mostly empty shopping street in the centre of Chichester on a summer day.
A High Street in Chichester

Property Investment in Chichester

Population: 33,428 approx.
Average House Price: £490,201

Much of Chichester city centre is a conservation area. The area within the city walls is a smart residential area and investors can choose from property types including quaint old cottages to imposing Georgian properties. The Pallants area comprising North, East, South and West Pallant is sought-after.

North of the city centre is home to some of Chichester’s pricier suburbs such as Summersdale and Parklands, while the village suburb of Fishbourne is also a higher-priced district.

Demand for property in Chichester has meant that several new-build estates have been built in recent years. These include Graylingwell Park and Roussillon Park, which has been developed as a new sustainable community. A large new suburb is being developed at Whitehouse Farm to the west of Chichester.

South and east of the city centre, and south of the A27 road, tend to offer cheaper prices by Chichester standards. These areas include the suburb of Whyke and the separate village of Tangmere.

Property investors looking at Chichester might also consider the surrounding villages as Chichester offers a diverse range of investment property options to suit various strategies and budgets.

Areas close to Chichester Harbour, where development is heavily restricted, and which fringe the South Downs tend to be higher priced property areas. The most popular Chichester area villages, according to What House, are Bosham, Funtington, Mid Lavant, East Lavant, West Lavant, Singleton, Birdham, West Itchenor and Boxgrove.

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Filed Under: South East

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