Property values rise by £223 per week in Colchester

Last week, a landlord who lives in Dedham came in to our office to discuss the rising property values our part of Essex. He owns a varied portfolio of rental properties, primarily in Colchester and Ipswich with one in Clacton-on-Sea, so it is interesting to compare the increase in property values around the area.

 Over the last 12 months in Colchester average property values have risen from £246,000 to £257,600 a rise of £11,600 or £223 per week. When I looked at some of the surrounding areas, Ipswich has had a slightly lower than average increase in property values, at around £192 per week (as the average value of a Ipswich property has risen from £207,400 to £217,400) , whilst Clacton-on-Sea has had a slightly lower rise of around £113 per week (taking an average property in Clacton-on-Sea from £169,000 to £174,900).

Interestingly, when one looks at the percentages, Ipswich has performed the best, rising by 4.8% in the last 12 months, compared to Colchester at 4.7%  and Clacton-on-Sea at 3.5%! It is, nonetheless, a rise in all the town’s average property values which suggests the market is increasing steadily in our area, but especially Colchester– good news for home owners and landlords alike.  

However, back to Colchester, long term property values which track peaks and troughs are more helpful to landlord investors. The questions I seem to be asked on an almost daily basis by landlords are:-

·        “Should I sell my property in Colchester, or even buy another?”

·        “Is the time right to buy another buy to let property in Colchester and if not Colchester, where?”

·        “Are there any property bargains out there in Colchester?”

When considering this landlord’s buy to let portfolio, yields can be in the order of an average 3.5% to 6% per year, depending where you buy, so combine that with steady rental growth, excellent increases in capital values of the properties themselves and it could be a good time to invest in the property market in Colchester as property values start to rise.

If you would like some advice about buying to let, be you a landlord with a portfolio or someone thinking of investing in the rental market, do what a number of other Colchester landlords do and visit the Colchester Property Blog where I discuss the Colchester property market, how Colchester compares with its neighbouring towns/ rivals, and at the same time, I can hopefully answer the three questions above. I don’t bite, I don’t do hard sell, I will just give you my honest and straight talking opinion. If you ever passing, do pop in and see me at our office on 2-4 Headgate, Colchester or telephone me on 01206 76 76 73.