Should you sell or should you buy in this most interesting Chester property market?
I have calculated that at least 156 Chester house sellers have rented a home to break their house chain in the last 12 months, although at a cost as they face paying many thousands of pounds in rent.
There are a number of reasons behind this. One is because they cannot find another Chester property to buy amidst a continuing shortage of new Chester properties coming to the market. Although, there are others who have achieved such a high price for their home they have decided to cash in and are (hopefully for them) waiting for the Chester property market drop?
Or will it drop? (More on that later).
Those selling their home have seen the…
average Chester home rise in value in the
last 12 months by £9,600.
Yet, if they have had to go into private renting, they have paid for that privilege in the rent they have had to pay.
The average cost of a six-month rental agreement in Chester is £5,639, meaning accidental Chester tenants have pumped £879,625 into the Chester rental market in the last 12 months.
The unevenness between the number of properties for sale and demand for them is at its widest since the early 2000’s. Whilst we have seen a slight improvement in the number of properties for sale in Chester, there are still…
39% fewer homes up for sale today in Chester,
compared to August last year.
This serious shortage of Chester property for sale is discouraging some hesitant Chester homeowners from putting their property on to the housing market, anxious they will not be able to find their next home and will be left renting.
Yet some savvy Chester homeowners are moving into a rented property as a way to navigate the shortage of properties to buy. If you have someone offering you top dollar for your Chester home, whilst you will have the hassle of two moves, the increase in value of your Chester home will more than offset the rent.
Also, when you come to buy your next Chester home, you will be chain free and in pole position to buy your ‘forever home’, rather than being overlooked for the home because you are sold stc and burdened with a chain.
Yet this trend has made life tougher for long-term Chester tenants.
On average there were normally 520 to 650 properties available to rent in Chester on Rightmove at any one time (pre-pandemic), today there are only 261 available.
To give you an idea of how this has affected the Chester rental market, with heightened demand and lower supply, demand for rental properties has grown to such an extent…
the average rent in Chester has grown from £940 per month a year ago to £983 per month today.
Tenants are suffering from less choice and higher rents in the Chester property rental market, with few indications it’s going to significantly ease on the run up to Christmas.
So, what is going to happen to the Chester property market?
Well, those of you that follow me know I regularly write about the Chester property market in my property blog. If you would like some recent articles I have written about the future of the local property, either drop me a line and I will send you some links to those posts, send me a DM or contact me by telephone.
In the meantime, please do share your thoughts on the matter in the comments.