Cheltenham and Gloucester census figures released

It seems a distant memory three years ago when we were filling in our Census Returns, but now the figures are beginning to be released, especially the statistics about property. The figures for each individual town and city have been released, so let’s look at both Cheltenham and Gloucester’s figures. In the town of Cheltenham there are 46,137 households, just over six out of ten properties are owned,  62.9% to be precise (29,063 households) whilst in Gloucester of the 46,444 households 65.4% or 30,416 households are owned.  Renting interests me and in Gloucester there are 7,686 rental properties (16.5% of households being rented) whilst in Cheltenham there are surprisingly more rental properties with 21.1% or 9,763 households being privately rented.

So, with  between 16 and 21 % of households being rented in both Cheltenham and Gloucester, which is very much above  the national average of 15.6%, where does that put both Cheltenham and Gloucester? For renting, Cheltenham is just out of the top 25% of local Authorities when it comes to renting 92nd out of 347 authorities whilst Gloucester is the top 15% of local authorities when it comes to renting (52nd out of 347 authorities).

So does that mean renting isn’t booming in Cheltenham and Gloucester? .. quite the opposite! Demand continues to be good from quality tenants who are prepared a pay a decent rent, but only for a decent property. On average over the last 12 months, landlords in Cheltenham have achieved a total return on their buy to let investment, when you combine yield and capital growth, of 11.2% whilst in Gloucester it has been 12.3% . 

Also, if there were a glut of rental properties, there would be an over supply of property to rent, driving prices down. In the lettings industry, it is recognised there will always be 5% of the rental market up for rent at any one time, which means there should be 488 properties to let today in Cheltenham (5% of 9,763 as mentioned above) .. I am pleased to tell you there are only 406 as I write this article!  In Gloucester the picture is more or less the same where there were 384 properties to rent (if you assumed 5% were on the market) today there 371 properties available.

Don’t get me wrong, tenants are more discerning in the properties they rent. Woodchip wallpaper and no central heating won’t cut the mustard anymore. However, present your Cheltenham and Gloucester property to a good standard and price it right and you should do very well. If you are considering becoming a landlord or are an established landlord who is thinking of buying another property to rent out in Cheltenham and Gloucester, please do your homework. Feel free to ask my opinion on what makes a 'decent property'. I don't sell property, so it's in my interest for you to buy the right property for you, not me. I don't charge for that opinion, because I hope you will recommend me to your friends, which in fact is the best compliment you can make.