A complete guide to property investment in Colchester.
Last updated: 10 January 2026
Colchester stands out for investors seeking a mix of rental demand and affordability. The area has a strong private rented sector, sitting in the 81st percentile nationally, and a notably high student population in the 92nd percentile. This supports steady rental demand, reflected in the average rental yield of 6.0%. Despite a 1-year capital growth of -3.2%, the 3-year capital growth of 9.2% and annualised growth of 3.0% suggest longer-term value.
Median price per sq ft
£340 / sq ft
Average rental yield
6.0%
Capital growth (1y)
-3.2%
Sales in past year
1,637
* Property stats calculated for last full calendar year (2024).
Live prices in Colchester, East of England
* Extreme prices clipped for legibility
Median price
£300,000
25% of properties below...
£190,000
75% of properties below...
£418,750
Most expensive property
£4,000,000
Live listings
1,042
Median days on market
63
Colchester’s outlook for investors is shaped by its large student and young professional populations, which are likely to keep rental demand resilient. The days on market of 63 days and annual sales of 1,637 point to a liquid market, while the median discount of £0 (the typical achieved discount) suggests sellers are achieving their asking prices.
While the 3-year capital growth of 9.2% and annualised growth of 3.0% are positive, the recent 1-year capital growth of -3.2% means capital appreciation may be less predictable in the short term. Investors should focus on income returns, as the combination of high yields and affordability make Colchester a pragmatic choice for those seeking steady rental income rather than rapid price gains.
Average yield (%)
Median price per sq ft (£/sq ft)
Investment properties in Colchester, East of England

£300,000 - Offers in Excess of
3 bedroom semi-detached house for sale
King George Road, Colchester

£135,000
2 bedroom apartment for sale
Vitoria Mews, Colchester, CO2

£100,000
1 bedroom apartment for sale
Salter Court, Colchester

£90,000
1 bedroom flat for sale
East Street, Colchester

£300,000 - Guide Price
5 bedroom terraced house for sale
Mersea Road, Colchester

£500,000 - Guide Price
3 bedroom detached house for sale
Church Lane, Colchester, CO3

£150,000 - Guide Price
2 bedroom maisonette for sale
Dewberry Close, Colchester, Colches...

£230,000 - Guide Price
2 bedroom terraced house for sale
6 Abbeygate Street, Colchester, Ess...
Buyers should not expect big bargains — discounts are marginal.
• Median discount: £0
• 1 in 4 properties sell at > £5,000 below asking
• 1 in 10 properties sell at > £15,000 below asking
In percentage terms:
• Median discount of 0.0%
• 25% of properties discounted by > 2.1%
• 10% of properties discounted by > 4.2%
Top postcodes for rental yield and (annualised) capital growth
GeoGlider calculates property investment stats by blending official and proprietary datasets. Here's a quick overview of key sources and how we use them:
HM Land Registry: Property transaction and sold-price records for England & Wales used to calculate historical capital growth, price levels and comparables.
Office for National Statistics (ONS): Demographic and economic indicators for the UK, including Census 2021, supporting area profiling and market context.
Ordnance Survey: Authoritative UK geospatial data powering accurate boundaries, roads and terrain for mapping and spatial analysis.
GeoProp: Our proprietary AI pipeline that processes millions of property listings to extract rich features and live market signals.
Department for Levelling Up, Housing & Communities: Energy Performance Certificate (EPC) scores and property floor areas.
HM Revenue & Customs (HMRC): Household income and employment data to understand local affordability and economic conditions.
Data is updated continuously, matched across sources and rigorously validated.