Areas of Gloucester: Buy-to-Let Property Investment Hotspots
Sometimes the best value locations for property investors are those you least expect. Gloucestershire overall has a reputation for being an expensive part of the country in which to invest in property. But its county town – Gloucester – actually has some of the best value property around.
Why Invest in Gloucester?
Gloucester, with its rich history and excellent transport links, presents a compelling case for investors. Known historically as the 'Crossroads of England', the city has always been a well-connected hub, offering direct motorway and rail access to Birmingham, Bristol, Cardiff, and Oxford. This connectivity, combined with its location in the heart of Gloucestershire, has made Gloucester an attractive base for businesses.
The city has also undergone significant regeneration in recent years, with over £800 million invested in major projects, including the transformation of the Gloucester Docks and Quays area into a vibrant destination for leisure, dining, and tourism. This urban renaissance has sparked renewed interest in the city, making it an increasingly popular place to live and work.
Gloucester Business Park, located at Junction 11A of the M5, is a prime example of the city's thriving business community. Covering over 276 acres, the park is home to major companies like Lockheed Martin, Laithwaites, Horizon Nuclear Power, DHL, Ageas, and EDF Energy, providing thousands of jobs.
The University of Gloucestershire, with its campuses in the city, is also a key player in the local economy. The university has received funding from the UK Shared Prosperity Fund, which aims to improve communities and support local businesses. The university's plans for the former Debenhams store in the city centre include an information centre, a digitally enabled public library, and a drop-in wellbeing centre.
Gloucester has an exciting pipeline of regeneration projects, including the £85 million King's Quarter development, which will create over 125,000 square feet of office space, an innovation hub, a hotel, a gym, restaurants, shops, and apartments. The city council has also invested £5 million to transform King's Square into a modern city centre square, attracting private developers to the area.
Gloucester has a diverse economy, with key sectors including aerospace, technology, engineering, and financial services. The city has a skilled workforce, and its well-connected business parks provide a range of employment opportunities.
The Royal Gloucester Hospital is another major employer in the region, and the city's ongoing expansion plans include new housing developments and garden villages, ensuring a continued demand for property.
With its rich history, excellent transport links, diverse economy, and ongoing regeneration projects, Gloucester is a city on the rise, presenting a range of exciting investment opportunities.
Property Values
Gloucester offers property prices that are below the national average. As of April 2024, the average house price in Great Britain is currently £284,000, while the average house price in Gloucester is £264,000, according to the Office for National Statistics and HM Land Registry. This makes Gloucester the 34th cheapest postcode area out of 105 in England and Wales. The cheapest properties, currently on sale on Rightmove in Gloucester are priced around £60,000, and the most expensive can reach £863,000.
Gloucester's property market has been resilient, with house prices increasing by 4.9% (ONS) from April 2023 to April 2024. The average price for a detached property in Gloucester is £440,000, while the average price for a flat or maisonette is £147,000.
The city has a diverse range of properties, from terraced houses to detached homes, catering to different budgets and preferences. The Gloucester City Plan aims to revitalise the city, creating new jobs and housing.
With its affordable property prices, strong economic performance, and future development plans, Gloucester presents an attractive opportunity for property investors.
Average Asking Price by Postcode Area
Last updated: June 2024
Data from HM Land Registry
| Postcode District | Average Property Price |
|---|---|
| GL1 | £204,890 |
| GL2 | £337,128 |
| GL3 | £317,547 |
| GL4 | £298,552 |
| GL19 | £616,652 |
Rental Demand
According to Home.co.uk, the average rent in Gloucester is currently £1,559 per month, almost £300 more than the UK average of £1,223. This figure is based on the advertised rents for homes to let, calculated daily from the properties found by the Home.co.uk Property Search Engine.
Landlords in Gloucester can expect to achieve the following average monthly rents (June 2024):
- £829 for a one-bedroom property
- £1,553 for a two-bedroom property
- £1,473 for a three-bedroom property
- £1,979 for a four-bedroom property
- £2,747 for a five-bedroom property
These figures are supported by data from the Office for National Statistics, which puts the average monthly private rent in Gloucester at £926 in May 2024, an increase from £905 in May 2023.
In terms of buy-to-let yields, Gloucester is performing well. According to Track Capital's UK Buy-to-Let Yield Map for 2024, the GL1 postcode in Gloucester offers rental yields of 9.5% to 12%, making it one of the top-performing postcodes in the UK.
Average Rental Yield by Postcode Area
Rental yield is the rental return an investor can expect on their investment once costs have been taken into consideration.
Last updated: June 2024
| Postcode District | Average Rental Yield |
|---|---|
| GL1 | 7.3% |
| GL2 | 4.8% |
| GL3 | 5.0% |
| GL4 | 4.1% |
Landlord Licensing
As is true for all local authorities in England and Wales Gloucester City Council, all HMOs in the council area must be licensed. The council has also introduced Article 4 Directions in conservation areas in the city.
Although as of June 2024, there is no plan to introduce Selective Licensing in the city, the council are within their rights to introduce this at any time, as many other local authorities have done. Landlords looking to purchase property in Wakefield are advised to watch for any new announcements.
Property Investment in Gloucester
Population: 169,245
Average House Price: £264,000
The City of Gloucester comprises a number of different suburbs plus villages in the areas immediately surrounding Gloucester itself, so there are opportunities for buy-to-let landlords in a range of different property types. Here’s our guide to buy to let in in some of the areas of Gloucester.
Gloucester city centre is a good value residential location. Buyers here can choose from traditional terraces, period houses from the Victorian and Regency periods (some of which have been converted into flats) and some newly built properties.
Inner city suburbs include Kingsholm, a district just to the north of the city centre – Gloucester Rugby’s Kingsholm Stadium is here. Wotton and Elmbridge are just to the east of the city centre and close to the Gloucestershire Royal Hospital. Barton and Tredworth are just to the south of the city centre and are good value areas in property terms.
Gloucester Docks and around Gloucester Quays have become popular residential spots in recent years, thanks to the proximity to the shops and leisure amenities they offer. Buyers can choose from newly built houses and apartments plus apartments in attractive converted warehouse buildings.
Just to the east of the city centre suburban areas include Abbeydale and Abbeymead, which are large housing estate areas with extensive local amenities. Barnwood to the west of the city centre has good access to the M5 via the A40, A417 and A38 and is home to a number of businesses providing jobs.
Hempsted can be found across the Gloucester and Sharpness Canal from the city itself. Once a small village, it now offers many newly built properties some in a popular waterfront location.
The one-time village of Hucclecote has expanded to become a large Gloucester suburb. Part of this area, together with the large village of Brockworth, falls within Tewkesbury District Council rather than Gloucester City Council. The large Gloucester Business Park which provides many local jobs is also in the area.
Hunts Grove is a newly built village to the south of Gloucester. Hunts Grove has mainly been developed over the last decade and more new homes are planned here.
Innsworth is a large village to the north of Gloucester. It has good access to the M5, Cheltenham and is home to Imjin Barracks, the HQ of the Allied Rapid Reaction Corps. Nearby Churchdown is also a popular residential spot and convenient for Cheltenham commuters.
Longlevens is a mainly residential suburb to the north of Gloucester and is particularly popular thanks to the Sir Thomas Rich Grammar School. It also offers good access to Cheltenham and so is popular with commuters.
The one-time village of Matson is mainly a large housing estate. It is also the location of the Gloucester Ski Centre, a dry ski slope.
Podsmead is a large mainly twentieth-century housing estate. It is a good-value property area.
Quedgeley is technically a town in its own right with a population of around 17,000 but has been absorbed into Gloucester as the city has expanded. It has its own amenities and good access to the M5 at junction 12. Kingsway Village, a modern housing development, is just to the east.
Lastly on our tour of Gloucester buy-to-let locations Tuffley and nearby Lower Tuffley have their own amenities, are known for their good schools and are close to Robinswood Country Park.