Cheltenham and Gloucester property values over the last 5 years

Following last week’s article about how property values had risen at a much faster rate in Cheltenham than Gloucester over the last 12 months (68% faster in fact), I did promise that I would look at the history of values over a slightly longer period. If you recall, I said Gloucester property values had increased by 5% in that last 12 months from £183,100 to £192,200; yet in Cheltenham average property values have risen from £262,600 to £284,500 , a much higher rise of 8.4% in that same year.

So is Cheltenham property the best to invest in? Not necessarily! Property ownership is a long term consideration. Yes it is true that today’s Cheltenham property values are 8.4% higher than they were a year ago, but most of the growth (6.4% of the 8.4%) was in the Summer and Autumn of 2013, because in the last 6 months, they have only grown by 2% - property value increases are slowing down. Roll the clock back a little further and between Spring 2012 and Spring 2013, property values dropped by 3.5% in Cheltenham, whilst in Gloucester they remained stable.
However, look over the medium to long term, and over the last 5 years, both places are almost identical. Property values since the 2008 crash are on average 12.9% higher in Cheltenham and 13.7% in Gloucester. It just goes to show you should take short term price increases and decreases with a pinch of salt. Investing in property is a medium to long term thing and should be viewed as such by new and old investors alike.

Finally, investing in property is also about the yields / annual yield a landlord can earn each year as well as the capital growth. Different landlords have different needs for their investments.If you would like some advice about buying to let in Gloucester or Cheltenham, be you a landlord with a portfolio or someone thinking of investing in the rental market for the first time, please email me on neil.west@belvoirlettings.com