House prices in Cheltenham increased by 3.9 per cent between 2017 and 2018, according to the government’s Land Registry statistics.
Published in October last year, they showed the average price of property in the town had jumped from £271,143 to £281,716. The percentage increase was higher than the national average for England, which was 2.4 per cent. The average house price in the country, meanwhile, was £247,914.
At the last census, Cheltenham had a resident population of 117,100, of which 57,400 were male and 59,700 females. A total of 74,200 (63.4 per cent) were aged 16 to 64 and of working age, according to the government’s official labour market statistics.
General property market in Cheltenham
In January 2019, the website Home.co.uk listed 886 properties for sale in Cheltenham. According to their statistics, the average property in the town sits on the market for 144 days before contracts are exchanged.
Of the total number of properties to buy in Cheltenham, the majority are two-bedroom dwellings (336 properties). Three-bedroom homes was the next highest category with 210 properties for sale. There were 139 houses with four bedrooms and 120 with one bedroom. Five-bedroom homes for sale numbered 42.
Narrowing the properties still further, 354 of those advertised for sale were flats. 183 were semi-detached homes, 178 houses were detached and 119 terraced properties.
Semi-detached homes sold quickest at 98 days, while flats were the slowest to go with an average of 160 days on the market.
Private rental market in Cheltenham
A higher number of people than average live in private rental accommodation in the town (23 per cent when the last survey was done in 2011). Smaller household sizes also means an increase in the number of flats and houses with a maximum of three bedrooms being built.
In January 2019, there were 550 properties for private rental in Cheltenham. The average rental price was £988 pcm. Of those 500 properties, 300 were flats, with a total average rental of £847 pcm. Another 205 private rentals were houses (with an average rental of £1,277 pcm). The remainder (39) were rooms with an average rent of £559 pcm.
By far the highest number of homes to rent had two bedrooms (213 properties) with the next highest category one-bedroom dwellings (131 properties). There were 86 three-bedroom properties to rent, 48 with four bedrooms and just 12 of which had five bedrooms or more.
Recent investment in the area
Keen to help young people and families remain in a town where property prices are above the national average, the local council has recently received investment of £100 million to build 500 affordable homes over the next three years. Some will be available via the government’s Shared Ownership scheme.
Developers Taylor Wimpey, meanwhile, are building more than 100 homes at the former 100,000 sq ft Travis Perkins site in Gloucester Road. The development is due to be completed in 2020.
Best areas for specific property strategies
For buy to let opportunities, consider St Lukes. It’s pretty narrow streets and proximity to the town centre (just five minutes to the High Street), make it particularly popular with young professionals and couples. There’s also a lido and park nearby to add to its attractions.
Prospective HMO landlords may want to look towards St Pauls. This is where the majority of HMOs in Cheltenham are, thanks to the fact the University of Gloucestershire is also based here. Get in quick though – the council have been considering placing restrictions on future HMOs in the area for some time now i.e. there’s currently a proposal to ensure there is no more than 10 HMOs within a 100-metre radius.
Speak to Graham Cossey who specialises in investment property.
Call 0333 123 1330