Colchester – What to look for in houses for sale?

by | Nov 15, 2022

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Colchester might be an interesting area to invest in when looking for a house for sale in the UK as it is a unique area in the county of Essex.
Before looking for a house for sale in the city of Colchester we strongly suggest landlords and real estate investors to research in detail and consider all involved factors. Indeed, house prices can change quite a bit depending on the square foot of the property, the number of rooms, the economic climate, the location of the house and more.

In this data heavy article the reader will be able to find out more on the topic and see the specific data to consider when evaluating different houses for sale in Colchester.

In Colchester, what are the demographics like?

Is the education level of Colchester important when buying a house?

In Colchester, the proportion of people who have a degree is 29%. Generally speaking, as the number of people with degrees increases, the more people are able to afford houses to buy as a degree is a good indicator of a higher income. To put this into perspective, the average income of Colchester is £43,200.

This figure for average household income usually goes up alongside the percentage of people who have degrees.

However, this is not a hard and fast rule, there are many factors influencing the buying power of a population and hence the appreciation of housing and the number of houses for sale in the area. This can include the rental yields of the area and other demographic statistics like crime rate.

Nonetheless, it cannot be argued that those with degrees tend to live in more affluent areas as 82% of people who achieve a first in degree level education are owners of the place they live.

In Colchester, what is the social grade score?

In the city of Colchester and throughout the UK, the social grade score is assessed by observing what type of jobs people have and then grouping this into a grading system.

In general, the people at the top of the scale (the A category) have the highest paid, most skilled jobs and this is just 4% of the general UK population. On the lower end of the scale, people who are on benefits, state pensions and also manual workers all are grouped into this category that represents the most unskilled.

When trying to determine if the area of Colchester has an abundance of highly skilled workers, the top two categories are grouped together and given a percentage. This percentage is 22%.

Below, you can see how this compares to the National average as the average for the top two categories nationwide is 27% (Adding together the A and B categories)

Social Score Category The proportion of the UK population (%)
A Professional, managerial or administrative 4
B Intermediate managerial or professional jobs 23
C1 Supervisory, junior managerial or professional jobs 29
C2 Skilled manual workers 21
D Semi and unskilled manual workers 15
E State pensioners, casual & lowest grade workers 8

In the city of Colchester, the demographics are unique and must be looked at by themself to make a conclusion about the area before buying a house. This is because the growth could be greatly different to the wider area of Essex for example.

These demographics for Colchester may impact the price of a house, how this house grows over time and the profitability of a house if you are buying it for an investment so knowing the area is crucial for a landlord making a purchasing decision in the city of Colchester in East of England.

In the city of Colchester, how much green space remains for residents?

In the city of Colchester, there are 8.9 acres of green space per 1000 residents.

The charity, ‘Fields in Trusts’ recommends a minimum of 6 acres of green space per 1000 people so it is easy to see where Colchester is when seeing if green space availability is sufficient. This green space could be parks, nature reserves, public gardens or playing fields.

Are the people of Colchester deprived?

The number of people who are deprived can have an impact on the perception of your house in the general marketplace. Additionally, if you are looking for a house to live in for the long term, you can start to picture what your neighbours and the people in your area live like financially.

If the proportion of deprivation of Colchester is 21% and in general for the UK this figure is somewhere around 33%, you can see if this figure is something you are happy with as you search for a house to buy.

What is the population of Colchester?

Population growth in Colchester is important to know if there is housing demand and the total population may also be looked at as large populations commonly have a lot of buyer demand.

In Colchester, 15,332 people live in the city as their main place of residence.

It is important to note that it is not the case that everyone likes a large population to live in. People who tend to prefer a more relaxed life are more likely to buy or rent somewhere to live that has a small population and perhaps also wouldn’t mind if the population isn’t growing.

Other people also like to have a mix of both. Where they can visit rural areas and also benefit from the amenities of a busy city.

In Colchester in the previous five years, have population numbers transformed?

Five years may seem like a long time but it is rare for a city to grow that much unless there is dramatic population growth. In Colchester, this change has been 7%. Read more here

Someone who wishes to find out how this change has occurred over a longer period of time may also wish to read the headings below and see if the change has continued throughout the past decade too. Or if the change is only true for the more recent figure for five years of 7%. Click here to know more on the UK population trends.

Over the last decade, how has the population differed in Colchester?

Populations change all the time but if there is a clear change in population in the last ten years this is even more reliable data about the population of the area as opposed to five. This adjustment in population works out to be 15% in Colchester.

What this statistic is like in comparison to the population change in five years should provide you with a comprehensive understanding of what direction the population is heading in.

In recent years because of the pandemic, it is common to see dramatic differences in the population change in the last five years when comparing it to ten as people realise they can work from home but still keep the current jobs they have.

This means they can move to cities they wouldn’t have considered otherwise and be location-independent of their source of income. Perhaps making a longer commute into the office every week for example.

Are the people in Colchester earning a lot?

You may be wondering what the amount people earn has to do with house price. Well, house prices generally go up as people earn more not just because they can afford more valuable properties but also because good areas generally attract more desirable infrastructure. For reference, the average household income is £43,200.

This may be better schools, doctors and areas with lower crime rates. This results in a snowball effect which polarises different areas further, increasing the demand for housing in richer areas by a greater amount. And increasing the proportion of people with high social grade scores. For Colchester this figure is 22%.

In general, do people commit a lot of crime in Colchester?

In Colchester, for every 1000 people, there is currently a crime rate of 338. This can be compared to the national average of 79.52 for every 1000 people.

Low crime rates are desirable for your safety as a homeowner. Even if you don’t tend to leave the house too often and tend to not mind living in a slightly more dangerous area. Things like burglaries are always a possibility which could harm your ability to pay for home insurance and also may force you to install additional security in your home that can cost you further.

Having said this, you can look at the crime rate on a deeper level to find out what the threats are exactly. It could be the case that a proportion of these crimes (338 for every 1000 people) come from things like anti-social behaviour rather than more serious crimes like violence and sexual offences.

If this is the case you may be more willing to look over a high crime rate within the areas you’re looking to buy a home.

What are the asking prices for the houses for sale in the city of Colchester?

Before a house gets sold, the figure it sells for always starts off as an asking price. This average asking price for the houses for sale in Colchester determines the eventual sale price of the house so it isn’t the most important figure but is still important to take note of. This figure is currently £238,117.

Below, there is a table showing the asking price of the different sizes of houses based on the number of bedrooms of the houses in Colchester.

Average price of houses for sale in Colchester

Average asking price (1 bed) £152,500
Average asking price (2 bed) £212,219
Average asking price (3 bed) £304,792
Average asking price (4 bed) no relevant data for this city
Average asking price (5 bed) no relevant data for this city

After looking at this table about prices of houses for sale in Colchester, someone who is buying a home would be able to know in great detail what kind of house for sale available on the market best suits the amount of money they are looking to invest. Also, using a more general figure like the average asking price per square foot of a property which is £0 will help them to have a more wholistic understanding.

In general, what do houses for sale sell for in Colchester?

For the city of Colchester, the average price a house sells for is £208,958. This value usually depends on the exact location of the house within Colchester as well as other factors like the population growth in Colchester which is 15% over a ten-year period.

Housing category Total final sale price
Aerage sold price (detached) £333,169
Aerage sold price (semi-detached) £254,510
Aerage sold price (terraced) £216,703
Aerage sold price (flat) £151,626

The above table puts this figure into perspective as you can see the various average sale prices of a house for the specific type of house you’re most interested in. This comparison is important because the type of house you’re considering to buy may be more or less in demand based on variations in supply and demand in the city of Colchester.

Housing category Sale price per square foot
Aerage sold price/sqft £2,800
Aerage sold price/sqft (new build) £3,200
Aerage sold price/sqft (old stock) £2,760

Generalising the bottom table, the average value per square foot of a house for sale is £2,800. This value averages all of the types of houses for sale in Colchester. So, if you’re not sure what type of house you want specifically, you can still get an idea of the real estate market of Colchester.

In Colchester, what are the rental yields?

Is the housing market in Colchester growing?

Before committing to Colchester to make a housing investment, an investor should always ask the question, what is the growth like in the area?

So take a look below at the growth patterns of the previous years displaying the percentage of new houses being built. This will help you understand how the number of houses for sale will evolve in the future.

1 year 3 years 5 years
Colchester growth rate 3% 11% 18%

Whether housing growth actually changes the price of a house depends on if the city in question is outstripping demand with the supply of new housing. You’d have to do some more research on what rate Colchester is building housing to find your answer.

Let’s consider that you’re not looking to buy a house for sale to live in for the long term future such as if you changed location with your family and want to settle down and you want to find somewhere to buy as an investor in Colchester. If this is the case, rental yield is a crucial statistic to consider.

If looking to invest, you should also consider other data about the area. The average rental income, the turnover of the sale of the house and what the net rental yields are like for the area do also have an impact on the final price of houses for sale in Colchester.

It is clear to see from the table below that there is a difference between all of these pieces of information and how they can be compared and contrasted on a county level (Essex), a regional level (East of England) and finally on the level of the city talked about in this article, Colchester.

Average Yield Average Asking rent Turnover (rental) Turnover (sale)
Colchester 5.0% £986 140% 23.0%
Essex 3.51% £1,237 125.97% 17.61%
East of England 3.49% £1,148 126.76% 16.58%

You may also find it useful to compare the data above to the number of properties sold per month Colchester experiences. This figure for house sales per month is 25. Looking at all this information holistically is what a smart investor should do when deciding on the right area for investment before looking for houses for sale.