Lettings and Property Management in Chester

The historic city of Chester, famed for its Roman walls, zoo, and Tudor style “Rows” shopping district, forms part of the government district of Cheshire West, along with Ellesmere Port, Frodsham, Helsby, Malpas, Neston, Northwich, and Winsford.

The private rented sector provides accommodation to around 21,000 households across Cheshire West, so what can landlords expect in returns from investing in the area?

Capital Growth

Average house prices have increased by almost 40% since January 2017

Rental Income

As property values increase, rental values follow suit. Rents have increased by over 40% in the last 6 years.

In West Cheshire, the types of rental properties that tend to produce the best yields are influenced by several factors, including location, property type, and market demand. Here are some general trends and types of properties that typically offer attractive rental yields:

1. Student Accommodation

• Areas: Chester, particularly near the University of Chester.
• Reason: High demand from students looking for rental properties near their campus. Houses of Multiple Occupation (HMOs) tend to offer higher yields.

2. Family Homes

• Areas: Suburban areas like Hoole, Upton, and Great Boughton.
• Reason: Steady demand from families seeking good schools and amenities. Three to four-bedroom houses tend to have strong rental demand.

3. City Centre Apartments

• Areas: Chester city centre.
• Reason: Appeal to young professionals and executives who prefer proximity to work, restaurants, and entertainment. One and two-bedroom apartments can command good rental prices.

4. Professional HMOs

• Areas: Central Chester and near business parks or transport links.
• Reason: High demand from young professionals seeking shared living spaces. HMOs can provide higher rental yields compared to single-family rentals.

5. Affordable Housing

• Areas: Ellesmere Port and Winsford.
• Reason: Strong demand for affordable rental properties from lower-income families and individuals. These areas can offer higher yields due to lower property prices.

6. New Build Properties

• Areas: Emerging developments in and around Chester and other parts of West Cheshire.
• Reason: New builds often come with lower maintenance costs and attract tenants looking for modern amenities.

Factors Influencing Rental Yields

Location

Properties near transport links, universities, and major employers tend to offer higher yields due to consistent demand.

Property Condition

Well-maintained or newly renovated properties attract higher rents and better-quality tenants.

Market Trends

Keeping an eye on local market trends and developments can help identify upcoming areas with potential for higher yields.

Tenant Demographics

Understanding the local tenant demographics can help tailor the type of property investment to the most lucrative market segment (e.g., students, professionals, families).

Conclusion

While student accommodation and professional HMOs in Chester often offer the highest yields due to high demand and multiple tenants, family homes and city centre apartments also provide good returns with relatively stable occupancy rates. It's essential to conduct thorough market research and consider factors like location, tenant demand, and property condition to maximize rental yields in West Cheshire.

With over 30 businesses offering property management services in Chester alone, it is advisable to speak to several agents as part of your market research. Chester Letting Agents have up to date market knowledge and can offer invaluable, time and money saving advice before you make that next investment.