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.