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An investor’s guide to Colchester

Nov 5, 2018

What makes a decent buy-to-let location?

It has to be a place where people want to live, of course, with good amenities in the town centre and convenient access to wide open green spaces.

It needs to be easy for residents to get to and from work every day, but it needs to be affordable as well.

The LendInvest Index has consistently rated Colchester as one of the country’s front-runners in the buy-to-let sector, and placed it at number 1 in March 2018.

Here are a few reasons why:


Easy to get to – and from

Sitting 60 miles to the north east of London, Colchester in Essex is renowned as the oldest town in Britain and served as the country’s capital during the Roman occupation.

It remains a site of considerable historic importance, with Roman, Saxon, Norman and Victorian elements all visible across the town.

Today, Colchester has around 190,000 inhabitants and covers an area of approximately 125 square miles.

It is at the gateway to the picturesque region of East Anglia but is less than an hour from Central London.

Colchester is well served by rail, with 2 stations offering excellent connections to the East of England and the capital itself.

There are frequent commuter services to London Liverpool Street – 8 trains per hour at peak times, 5 an hour off peak. The fastest route takes just 47 minutes, and the average journey time is 1 hour 8 minutes.

The town is also 31 miles and less than an hour from London Stansted Airport, which serves 170 international destinations.

There is convenient access to the M11 and M25 motorways via the A12 and A120.


£3bn local investment programme under way

A £3 billion regeneration programme is under way at various locations in and around the town, expanding local sport, business, leisure and higher education facilities.

A £13m project is transforming Hythe, the town’s former port, into an exciting new waterside community.

£500m is being invested in the town centre itself, with new and refurbished buildings already including:

  • Fenwick department store
  • Curzon Cinema
  • Greyfriars Boutique Hotel
  • Firstsite Visual Art Gallery
  • Magistrate’s Court

England’s #1 property investment hotspot

The LendInvest buy-to-let Index is a quarterly analysis of 105 postcode areas across England and Wales based on capital growth, transaction volumes, rental yield and rental income growth.

Colchester consistently finds itself in the top 10 of these rankings, and in March 2018 topped the table.

The report notes:

“Second in the previous two LendInvest BTL Index reports, Britain’s oldest town graduates to the top spot in the latest Index.

Colchester still manages to boast the second highest rate of capital gains in the Index at a lofty 9.98%.

With quick commuter links to London, and lower average house prices than nearby Chelmsford and Southend-on-Sea, Colchester has seen more activity in the market than this time last year with prices gearing towards the highs seen in 2007 and rental growth remaining strong.”

Buy-to-let property performance highlights in Colchester included:

Yield3.71%
Capital gains9.98%
Rental price growth3.41%
Transaction volume growth2.79%

A great place to live

With an average cost of living of £2,868 in Colchester compared with £4,500 in London (colchesterultraready.co.uk), the town is much sought-after by commuter professionals and there is a demonstrable shortage of property either for sale or to rent.

Colchester is blessed with green spaces, with the magnificent Castle Park, just off the High Street, offering a range of activities and events all year round. There is also the highly acclaimed Colchester Zoo with over 260 rare species.

A vibrant arts and culture scene is matched by excellent shopping and varied wining and dining options.


Introducing The PostCOde

The Postcode is our tenant-ready development of new build apartments in Colchester. Sitting adjacent to Fenwick’s department store and a short walk from 2 mainline train stations, it is highly sought-after by professional London commuters.

Key investment highlights:

  • Fully managed by buy-to-let experts
  • Completed in October 2018 – zero development risk
  • Ready to rent, with a high standard of fixtures and fittings throughout
  • Independent 10-year build warranty
  • Projected 8.8% NET geared returns
  • Priced from £145,000; mortgageable – invest from just £36,250

Discover more in the Investor Report.

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