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Gloucester Buy-to-Let 2024 Guide

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    Everything You Should Know About the Gloucester Buy-to-Let Market

    Gloucester is a popular city with buy-to-let investors. This Gloucestershire town boasts massive regeneration and property development projects that have and will continue to attract landlords and tenants alike.

    Whether you want to invest in traditional semi-detached homes or modern buy-to-let properties aimed at young professionals, the City of Gloucester has a wide array of property types in the city centre and surrounding suburbs.

    Today, we’ll guide you through the best places to invest in this South-West England locality. We’ll cover the latest property prices, rental yields and more. We’ll also see how Gloucester compares to the rest of the country.

    Interested? Read on for more information.

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    Buy-to-Let Property Prices in Gloucester

    According to the HM Land Registry UK House Price Index, Gloucester house prices are £253,703 on average. This represents a 4.30% year-on-year increase.

    The same index puts the average UK house price at £289,824. This makes Gloucester 13% less expensive than the national average.

    Over at Rightmove, stats show that Gloucester’s most popular properties over the past year were semi-detached houses. They sold for an average of £286,239. Meanwhile, detached properties cost an average of £437,034 and terraced homes sold for £222,108.

    For more information on what to look out for when starting a property investment, it could be worth looking at a buy-to-let guide for beginners.

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      Buy-to-Let Rental Market in Gloucester

      Home.co.uk puts the average Gloucester rental cost at £1,343 PCM. This is almost £100 more expensive than the UK average of £1,261.

      When you compare Home.co.uk’s average rent with the UK House Price Index average property price, Gloucester has an average rental yield of 6.4%.

      In contrast, the UK has an average yield of 5.19%. This is more promising than the yields that can be found in some other southern cities. For example, City of Westminster investment properties have notoriously low yields.

      As such, investors can expect better returns in Gloucester. However, the South West has one of the least impressive rental growths in the country. The Homelet Rental Index puts the region’s rental growth at 6.00%. In comparison, the UK, on the whole, has enjoyed a 10.30% rental growth over the last year.

      The University of Gloucestershire has its Oxstalls Campus located in Gloucester, and they’re working on a new City Campus to open in 2024, meaning there is some potential for a student investment property in the city.

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        Investment Properties for Sale in Gloucester

        Gloucester has a range of property investment types, including detached, terraced, and semi-detached properties. Properties here can fetch a higher price than most others in the UK, meaning that investors might find better-value investment opportunities elsewhere.

        According to Rightmove, over the last 12 months, properties in Gloucester had an overall average of £272,546.

        However, despite the higher price point, semi-detached properties have remained the most sought-after option in the past year, with an average price of £281,624, followed by terraced properties at £217,351 and detached properties selling for an average of £431,896.

        In the past year, sold prices in Gloucester experienced a 3% drop compared to the previous year but were 4% higher than the peak of £262,004 observed in 2021.

         

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        Buy-to-Let Investment in Gloucester: Area Breakdown

        Gloucester offers numerous appealing areas for buy-to-let investment. The city and surrounding districts cater to young professionals, students and families alike.

        The following property prices are from Rightmove, while rental yields are calculated from information on Housesforsaletorent.co.uk.

        The Docks and Central Gloucester

        The Gloucester Docks and Gloucester Quays prove to be one of the most popular areas in the entire city. They attract young professionals requiring luxury apartments close to the Gloucester nightlife and local amenities.

        The city centre offers good value properties, including terraces, Victorian and Regency properties and new-build homes.

        Average Property Prices in Gloucester Docks and Central Gloucester

        Average property prices in GL1 are £219,118.

        Average Rental Yields in Gloucester Docks and Central Gloucester

        Average rental yields in GL1 are 5.8%.

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          Abbeydale

          If you are looking to invest in buy-to-let properties for families, Abbeydale offers decent-sized semi-detached properties for affordable prices. This suburb is three miles out from the city centre and has plenty of amenities and green spaces. This is one of the most desirable places for family homes in Gloucester.

          Average Property Prices in Abbeydale

          Average property prices in this area of Gloucester are £272,299.

          Average Rental Yields in Abbeydale

          Rental yields in Abbeydale are roughly 4.9%.

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            Quedgeley

            Quedgeley has been absorbed into Gloucester, though it is actually a separate town with a considerable population of 17,000. It has many good amenities that make it an attractive place to live. Quedgeley also offers easy access to the M5 motorway.

            Average Property Prices in Quedgeley

            Average prices in Quedgeley are £254,376.

            Average Rental Yields in Quedgeley

            Property investors can expect average yields of 5.2% from Quedgeley rental properties.

            Gloucester street view

            Longlevens

            Longlevens is a residential suburb to the north of the city centre. It boasts one of the top grammar schools in the area – Sir Thomas Rich’s – and has convenient transport links to Cheltenham. As such, the area appeals to people who either work in Gloucester or Cheltenham.

            Average Property Prices in Longlevens

            Longlevens property prices are £280,031 on average.

            Average Rental Yields in Longlevens

            Rental yields in this part of town are around 4.8%.

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              Churchdown

              Churchdown is a picturesque village between Gloucester and Cheltenham. It has a bustling high street, modern facilities and also offers good access to Tewkesbury. It is actually part of the Tewkesbury Borough.

              Average Property Prices in Churchdown

              House prices are considerably higher in Churchdown than in other parts of Gloucester. Expect to pay an average price of £292,980 for an investment property in this area.

              Average Rental Yields in Churchdown

              Yields in Churchdown are 4.6% on average.

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                Why You Should Consider a Buy-to-Let Investment in Gloucester

                Transport Links to Other Cities and Major UK Regions

                Gloucester is a city with excellent motorway links. It sits directly on the M5 motorway. Therefore, it allows access to Birmingham, Bristol, Cheltenham and Worcester. This could make Gloucester property a cheaper alternative to property to buy in Birmingham.

                In addition, the rail services also provide convenient access to London, South Wales, other parts of the South West and further north.

                This makes Gloucester well-placed for people who need to frequent those areas for work or simply like the option to commute and travel to noteworthy parts.

                Regeneration Prospects

                Gloucester is the setting for numerous redevelopment projects that bring people into the area. The Gloucester Quays shopping centre ushered in serious regeneration in the docks area. Now, the GL1 postcode offers appealing tourist attractions and leisure facilities.

                The first phase of the King’s Square redevelopment has been met with acclaim, while the second phase will continue to provide more homes and amenities in Gloucester city centre.

                In terms of housebuilding, Gloucester is a hotspot for new housing estates to satiate property demand in the area. There are additional plans for new properties in Hunts Grove and Whaddon. The introduction of new garden villages in the wider county area will also provide thousands of new homes for your property portfolio.

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                  Gloucester New-Builds

                  New-build properties are a popular investment type within the UK rental market, typically generating significant interest from tenants and landlords alike. As these are freshly built developments, almost no maintenance or upkeep work is needed before tenants can move in. For tenants, this means they can get settled into their new home more quickly, and landlords have a faster turnaround time to start receiving returns on their investments.

                  In July 2023, Gloucester City Council signed a new deal to bring hundreds of new affordable homes to the derelict land at St Oswald’s Park, the former site of Glouster Cattle Market which has laid dormant for years. The £2.2 million scheme will see a third of the new homes available for private sale and another portion set aside for social rent, with any remaining set to be sold under shared ownership.

                  Considering recent market trends, investing in new-build properties such as these could lead to profitable investment opportunities in the future.

                  However, whilst options are available in Gloucester, investors could see more new-build property deals and wider potential tenant markets in other cities, like Liverpool or Manchester.

                  Read More:  Discover more about this investment trend with our recent buy-to-let guides, covering everything from new-builds in Basildon to the latest UK hotspots!

                   

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                  Off-Plan Property in Gloucester

                  New-build investments can see significant interest from tenants but often have higher price points than standard residential properties.

                  Off-plan property investment is one way to get more affordability from a new-build property. 

                  Investing in off-plan involves purchasing a property before it has even been built. This typically means that investors can secure developments at a discounted price compared to the usual market value.

                  Getting involved early into construction means that the property’s value can increase substantially; the closer it gets to completion, the more value can be accumulated. 

                  As with any new-build, there is also a strong rental demand on offer, which could lead to considerable rental yields in the future.

                  The most successful off-plan investments are usually found in up-and-coming areas with strong infrastructure and developing job markets. Those with higher levels of regeneration are also attractive, with many private developers targeting areas like these for future construction.

                  While there is some potential for off-plan investment within the Gloucester rental market, it may be more profitable for investors to seek UK cities with a wider variety of new-build developments.

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                  How Does Gloucester Compare to Other UK Regions When It Comes to Buy-to-Let?

                  As mentioned, Gloucester is roughly 13% cheaper than the national average. In addition, rental yields are also higher than average.

                  However, if you are serious about finding good value properties with attractive rental yields, you should consider cities in the North West, which have been considered by many to be one of the best places to invest in property in the UK in 2023.

                  For instance, Liverpool and Manchester have cheaper average property prices than Gloucester – £177,628 and £233,243, respectively. Good deals can be found, especially when it comes to property for sale in Liverpool City Centre.

                  In addition, both of those cities also have better rental yields. Liverpool’s yield of 7.77% promises significant capital growth. Meanwhile, Manchester’s 9.12% average yield is one of the best in the country.

                  Speaking of capital growth, the North West is set to enjoy capital growth of 20.2% by 2028. In comparison, the South West is only predicted to undergo 17.9% capital growth.

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                    Want to Invest in Gloucester?

                    Buy-to-let investment is one of the safest ways to save money for the future, provided you know the best areas to invest in. If you’re considering investing in Gloucester or another area of the UK, it could be worth contacting a property investment company.

                    Also, if you’d like to learn about other buy-to-let areas in the UK, check out some of our other buy-to-let guides.

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                    Author

                    Dale Barham

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                    Dale is a property news and onsite content writer at RWinvest.

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