Chester Buy-to-Let Guide

Chester is an area that has a broad spectrum of properties at different price points. This contributes to many demographics living together within the city limits.

According to the HM Land Registry UK House Price Index, the average property price in Chester was £261,660 in August 2023. In comparison, the average UK price was £292,049. This makes the average property price in Chester around 10% cheaper than the rest of the country.

Chester also saw slow year-on-year price growth at 0.20%, slightly lower than the UK’s average of 0.50% during the same period.

But how much can you expect to pay for different property types in Chester? The average property prices for different-sized houses are as follows:

• Detached: £418,731
• Semi-detached: £250,960
• Terraced: £197,302
• Flats and maisonettes: £134,727

Savills predicts the North West will enjoy a substantial capital growth of 29.4% over the next five years.

Chester has plenty of areas that appeal to a large demographic of potential tenants. If you’re a property investor looking for the most lucrative region in Chester, these suggestions may guide your search.

Chester City Centre

Chester’s city centre has a substantial commercial sector, unique architecture, and cobbled streets. It attracts many tourists. There are many terraced streets and HMOs. In addition, you can find plenty of student accommodation due to the proximity of the University of Chester campus.

Average Property Price in Chester City Centre

The average property price in CH1 is £237,627.

Average Rental Yield in Chester City Centre

The average rental yield in CH1 is 4.8%.

The CH4 postcode includes the following areas:

• Curzon Park
• Handbridge
• Lache
• Pulford
• Broughton
• Saltney

Saltney is just south of Chester on the border with Wales; it offers good-value properties compared to the more expensive parts of Chester. In addition, Lache is a purpose-built residential estate with some of the cheapest houses, appealing to buy-to-let investors looking for a bargain.

Average Property Price in CH4

The average property price in CH4 is £324,987. However, Lache properties cost an average of just over £205,000.

Average Rental Yield in CH4

The average rental yield in CH4 is around 4.1%. However, the average rental yield in Lache is more appealing at 5.7%.

(Average property prices were taken from Rightmove in late 2023, and gross rental yield estimates were calculated with figures from housesforsaletorent.co.uk)

Big Student Accommodation

Chester is home to the University of Chester. It has a substantial student population of over 15,000 students. As such, buy-to-let investors may have some luck purchasing buy-to-rent properties and advertising to local students.

Popular student areas include the Garden Quarter and Hoole.

Huge Visitor Economy

Chester welcomes many visitors thanks to its rich history and numerous attractions, much like the City of York. However, York investment properties – which cost over £320,000 on average according to the HM Land Registry – are considerably more expensive than Chester, making the North West city more appealing to investors.

Some of the main tourist highlights:

• Chester Cathedral
• Chester Zoo
• Chester City Walls
• The River Dee
• Roman Amphitheatre
• Chester Races

Chester Rows is the main shopping centre in Chester, with half-timbered shop buildings on two levels up and down the street, preserving the city’s historical architecture.

Chester Zoo is a renowned zoological garden and conservation organisation. It houses over 35,000 animals from 500 species. The zoo is committed to conservation, education, and research, contributing significantly to global wildlife preservation efforts. The zoo attracts tens of thousands of visitors every day.

As such, buy-to-let investors could find success in a Chester-based short-term accommodation property investment.

Further Reading: For more property investment information, browse our guide on how to buy a buy-to-let property.

With ongoing regeneration efforts in these areas, many private developers may choose Chester for their upcoming projects. This provides new opportunities for regional property investors to consider off-plan investments.

As previously mentioned, there is a substantial demand among investors for new builds, driven by their distinct advantages over older properties and their appeal to tenants.

Despite the higher cost compared to second-hand properties, investors can secure favourable deals on new builds by entering the off-plan market during the planning or construction phase.

Choosing off-plan investments enables investors to purchase properties at prices below the market rate, often accompanied by flexible payment plans.

Consequently, if you are exploring investment prospects in a premium location like Chester, examining off-plan options for buy-to-let property investments may be advantageous.

Further Reading: Discover more about this investment trend with our recent buy-to-let guides, covering everything from off-plan property in Southport to the latest UK hotspots!