How much would it cost to buy all the homes in Chelmsford?

This interesting question was posed by one of my Chelmsford landlord’s teenage daughters when they dropped into my offices before the Christmas break (doesn’t that seem an age away now?).

I didn’t know the answer off the top of my head, yet I promised I would find out. So, over the Christmas holidays, I worked out the total value of all the properties in Chelmsford and, just for a bit of fun, worked out how much they have gone up in value since his daughter was born in the autumn of 2010.

In the last 14 years, the total value of Chelmsford property has increased by 68%, or £7.731 billion, to £19,102,467,579 (or £19.102 billion).

Interestingly, the FTSE100 stock market has only risen by 38.5%. When I compared it to inflation (i.e. the UK Retail Price Index), this had risen by 51.1% during the same 14 years.

When I looked deeper into the numbers,

The average price currently being paid for a Chelmsford home stands at £395,086.

(Chelmsford being, for this exercise, all homes within a 3-mile radius of the city centre and the average price paid in the last three months).

But regular readers of my Chelmsford property market blog articles know me. I wasn’t going to stop there, so I split the property market down into the individual property types in Chelmsford. The average numbers come out like this.

The Chelmsford property market reveals an intriguing dynamic when comparing the total value contributions of different property types.

• Detached houses have an average value of £584,735 and a total of £5.718 billion.
• Semi-detached houses, with an average value of £442,043, contribute £6.796 billion.
• Terraced and townhouses, averaging £368,436, collectively amount to £4.105 billion.
• Apartments, with an average value of £251,229, still contribute a substantial £2.481 billion.

This remarkable growth in property values over the past decade and a half reflects the fundamental strength of Chelmsford’s property market. But what does this mean for homeowners, homebuyers, and landlords as we move into 2025 and beyond?

The Chelmsford property market remains underpinned by several key factors that ensure its resilience, even amid broader national and global economic uncertainties. Property ownership continues to be a stable and rewarding long-term investment for Chelmsford homeowners, buyers and landlords. While market conditions may fluctuate in the short term, history has shown that property values in Chelmsford tend to weather these ups and downs and emerge stronger over time.

A Growing Rental Market in Chelmsford

For landlords, the rental market in Chelmsford remains an area of significant opportunity. Demand for rental properties is robust, driven by population growth, changing lifestyle preferences, and continued interest in the area from those seeking a quieter pace of life (compared to major cities). This demand keeps rental yields steady, offering landlords a reliable income stream and the potential for capital growth.

As Chelmsford continues to attract young professionals and families due to its excellent transport links, quality schools, and a sense of community, the appetite for quality rental homes remains strong. For landlords considering expanding their portfolios, now may be an excellent time to explore options in Chelmsford’s semi-detached or terraced housing market (even apartments if the service charge is reasonable), which provides a good balance of affordability and rental potential.

Supply and Demand of New Homes in Chelmsford

Another reason for optimism is Chelmsford’s persistent undersupply of new housing. I know some of you will say some parts of Chelmsford have looked like a building site for months, yet the fact is, we aren’t building enough new homes in the city. With demand consistently outstripping supply, property values are thus supported, reducing the likelihood of significant price drops.

Borrowing Costs to Buy Chelmsford Homes

Although interest rates are higher compared to recent years’ historic lows, they remain very manageable by historical standards. For those looking to buy their home in Chelmsford, this can still represent an opportunity to secure a mortgage and move up the property ladder.

Meanwhile, the Bank of England’s continued efforts to stabilise the wider British economy offers hope that rates may drift downwards, further boosting buyer confidence. Beyond the financial figures, Chelmsford has a lot to offer. Continued investment in local infrastructure, schools, and public amenities enhances its appeal as a place to live, work, and invest.

As always, navigating the Chelmsford property market can be complex. Whether you’re considering buying, selling, letting, or even investing in buy-to-let, making informed decisions is essential. If you’d like to discuss your property related goals or have questions about the Chelmsford property market, I’d be happy to help. My door is always open for a no obligation chat.