Gloucester Buy-to-Let 2024 Guide

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.

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.

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%.

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%.

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.

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.