Why Buy-to-Let Properties in Bath Are a Popular Choice

Buy-to-let properties give investors the chance to earn regular rental income while their house grows in value over time. Some investors use this method to pay their mortgages from the rent received, but why is Bath and the surrounding area such a good place to do this?

The Tourism and Lifestyle Appeal

Around six million tourists visit Bath each year, attracted by the likes of the Roman Baths, the Pump Room and the Abbey. While the city struggles to absorb so many visitors, it opens up opportunities for holiday rentals using sites like Airbnb. This type of business is best suited to cities that receive a lot of visitors, but that don’t have a huge number of hotels or other types of accommodation, so it fits Bath’s profile well.

Another option involves buying a property and renting it to someone who lives here. This provides the security of ongoing rental income that holiday lets can’t, although finding long-term tenants can be challenging. Bath is a city with strong rental demand, thanks to the expensive housing market, the presence of numerous students and its growing population.

The yield is a figure that lets us see how profitable a buy-to-let property is likely to be. It’s achieved by taking the annual rental income and then dividing that figure by the property to get a percentage. The average yield in Bath is an acceptable 4%, while with some houses this rises to an impressive 7%. There’s no agreed figure on what a good yield should be, although the Bath figures are close to the UK average.

A Booming Property Market

The rental aspect is crucial to any successful buy-to-let business, but we can’t neglect the other part, which is buying and selling a suitable property. According to the Office for National Statistics, the average price here dropped slightly between June 2024 and the same month this year, reaching £398,000. It’s generally considered to be one of the most expensive British cities in terms of property prices, with London and St Albans the only places ahead of Bath according to recent reports.

Finding the right property at the right price can be an issue, due to the relatively small market and high prices in Bath. The other part of the business to consider is how long it could take to sell a house here. Bath’s booming housing market has seen prices rise rapidly in recent years, driven partly by many people deciding to move here from other parts of the country.

Selling a property can still be time-consuming, even when the market is booming. A look at how to sell your house fast reveals that choosing a property buying service online allows the owner to quickly move on and use the funds from the sale for other reasons. Sitting tenants aren't a problem, so it's possible to sell the property for cash without waiting for the lease to come to an end.

It’s easy to see why so many people view Bath as a great choice of location for buying a rental property. It’s an investment that you need to weigh up carefully, as it comes with risks and isn’t right for everyone.