Reduced supply and a desirable location sees Bath prices 65% above the national average – David Mackenzie of @CJ_Bath
No matter how the property market fares in the UK, Bath has always had a strong demand from local, national and international buyers.
London, in particular, has always been a strong source of buyers where the price differential allow the city to be an attractive place to reside. Over the next 15 years to 2032, the population in the centre of Bath is forecast to increase by 9.2% to 173, 588.
Bath World Heritage status is part and parcel of its appeal as a relocation destination, and a key driver within its residential market. The high demand for property in Bath has resulted in a lack of available homes in the city. This has acted as a catalyst, increasing property values across the city, and specifically property that is “best in class” or future proof, with good accessibility in the city centre. Even with the increased supply of new homes from schemes such as Bath Riverside, Holburne Park (Warminster Road), Mulberry Park (Fox Hill) and Hope House (Lansdown Road) becoming available, we expect this will do little to reduce the current supply.
London to Bath price gap is reducing but still strong and interest from abroad, especially expats from the middle and Far East is continuing to draw with the attraction to the enviable quality of life, excellent schooling and amenities on your door step, with the boost of brilliant communication links.
Bath house prices are presently 65% above the national average showing a 6% annual price growth (all types of residential property) with gross lettings yields of 3.8% – 4.6%. Compared to Oxford, which has seen reductions in pricing of around -1% and Cambridge -2.9%, Bath has held its own, even though some parts of London have reduced as much as -10%.
We have seen a more cautious attitude to pricing for marketing purposes, and this is notable with reductions in asking prices being more apparent, however, the figures being achieved are still exceeding past prices in the main and the lack of property coming to the market is keeping demand high.