Are Our Chelmsford Homes Fit for Our Families? Insights for Chelmsford Homeowners and Landlords

Chelmsford has become an attractive destination for both families to buy and rent and is known for its rich heritage and strategic location.

In this article, I will delve into the current housing situation of family homes in Chelmsford, compare them with national averages, and then explore opportunities for home buyers and landlords.

My goal is to provide valuable insights for anyone interested in the Chelmsford property market, especially those focused on family living and find out if we have enough homes for families in Chelmsford, especially in the private rented sector.

Total Number of Chelmsford Family Homes by Tenure

Looking at the latest data for our local authority, Chelmsford has a total of 38,561 homes with families in them. The definition of a family home is a home with dependent children up to the age of 18. They are distributed across the various tenure types of owned outright, owned with a mortgage, socially (council & housing association) rented, and privately rented properties.

Here’s a detailed breakdown of those 38,561 family homes:

• Owned outright: 3,091 Chelmsford homes (8.02%)
• Owned with mortgage: 22,684 Chelmsford homes (58.83%)
• Social rented: 6,116 Chelmsford homes (15.86%)
• Privately rented: 6,670 Chelmsford homes (17.30%)

When we compare these figures to the national averages from 2021, we can see how Chelmsford aligns with or deviates from broader national trends.

Nationally, the percentage of family homes are broken down as follows:

• Owned outright stands at 8.42%
• Homes owned with a mortgage at 48.1%
• Socially rented homes at 20.93%
• Privately rented homes at 22.55%

These comparisons help us understand how well Chelmsford’s housing market (inclusive of the whole of the local authority housing) serves families, providing a unique perspective for both residents and investors.

Understanding these figures is crucial for local government, service providers, homeowners and prospective buyers alike. For families looking to settle in Chelmsford, the high percentage of homes owned with a mortgage indicates a vibrant property market where families are buying homes and settling down.

The decent number of socially rented homes also suggests robust support for families in need of affordable housing, ensuring that Chelmsford and the surrounding area remains inclusive and supportive of all family types.

Breakdown of Chelmsford Family Homes by Bedrooms

Next, I want to look at the distribution of the family homes in Chelmsford by the number of bedrooms. Families by their very nature need more bedrooms, meaning this breakdown provides a clearer picture of the housing stock.

So, of the 38,561 family homes in our local authority area, they are split down as follows:

• 91% of Chelmsford homes occupied by families have 1 bedroom
• 57% of Chelmsford homes occupied by families have 2 bedrooms
• 86% of Chelmsford homes occupied by families have 3 bedrooms
• 57% of Chelmsford homes occupied by families have 4+ bedrooms

Comparing these percentages with the national averages, we find that

• 1% of UK family homes have 1 bedroom
• 35% of UK family homes have 2 bedrooms
• 67% of UK family homes have 3 bedrooms
• 88% of UK family homes have 4+ bedrooms

This comparison highlights how Chelmsford’s (including the local authority’s) housing stock differs in terms of size distribution. Again, offering a unique perspective for prospective buyers and investors.

Families in Chelmsford can take pride in the fact that a significant portion of the housing stock consists of larger homes, which can be a strong selling point for those looking to settle in the area. However, the relatively low percentage of smaller family homes might indicate a potential demand for more compact living spaces, especially for smaller families or those just starting out. Ensuring that there is a diverse range of housing options is key to accommodating the varying needs of families at different stages.

Chelmsford Rental Properties Breakdown by Bedrooms

For landlords, understanding the rental market’s composition is crucial, particularly when it comes to family homes. In Chelmsford, rental family properties are distributed as follows:

• 74% of Chelmsford rental homes occupied by families have 1 bedroom
• 95% of Chelmsford rental homes occupied by families have 2 bedrooms
• 33% of Chelmsford rental homes occupied by families have 3 bedrooms
• 97% of Chelmsford rental homes occupied by families have 4+ bedrooms

In comparison nationally:

• 58% of UK homes occupied by families have 1 bedroom
• 85% of UK homes occupied by families have 2 bedrooms
• 34% of UK homes occupied by families have 3 bedrooms
• 23% of UK homes occupied by families have 4+ bedrooms

For families renting in Chelmsford, the good level of 3-bedroom rentals is beneficial, providing ample space for children and family activities. However, the lower availability of 4+ bedroom rentals could be a concern for larger families needing more space. This gap in the market highlights an opportunity for landlords to invest in larger rental properties, potentially attracting long-term, stable tenants.

Opportunities for Chelmsford Landlords

The Chelmsford rental market for families shows a notable skew towards smaller to medium sized properties, with a significant number of 3-bedroom rentals. This indicates a robust demand for those types of homes. However, the relatively lower supply of larger rental homes (with more bedrooms) presents an intriguing opportunity for landlords looking to invest in properties.

Whilst smaller properties tend to offer higher yields, making them attractive for landlords seeking immediate rental income. Conversely, larger properties often appreciate more significantly than their smaller counterparts, providing better long-term capital growth potential. The choice between investing in smaller versus larger properties depends on whether a landlord prioritises rental yield or capital growth.

Investing in family-orientated rental properties can also ensure stable, long-term tenancies. Families are more likely to settle down for longer periods, reducing tenant turnover and associated costs. Landlords who offer family-friendly amenities, such as proximity to good schools, parks, and other community facilities, can attract and retain tenants more effectively.

Final Thoughts

For both homeowners and landlords, understanding the composition of Chelmsford’s housing market is key to making informed decisions. Families can gauge how their property fits into the local market landscape, while landlords can identify lucrative investment opportunities in family homes.

With Chelmsford’s unique housing distribution and potential gaps in the rental market, it stands out as an interesting location for property investment. As an agent with extensive knowledge of the Chelmsford market, I am here to help you navigate these opportunities and make the most of your property investments.

Whether you are a family curious about the local market or a landlord seeking the next best investment, Chelmsford offers diverse possibilities. Reach out today to learn more about how you can leverage these insights to your advantage.