Is Bath a Good Place to Invest in Property?

Got property investment on your mind but not quite sure if Bath is the right move? Bath’s stunning streets and rich history have made it a standout place for the property market. Enticing everyone from first-time buyers and students to long-term renters, Bath’s mixture of charming Georgian townhouses and sleek city apartments truly has something for everyone.

But what are the risks of property investment in Bath and how competitive is the property market now?

In this article, we breakdown everything you need to know about Bath’s property market. From property prices, rental returns, risks and the best areas to invest in – we’ve got you covered. Let’s jump in.

What Are the Property Price Trends and Capital Growth Potential in Bath?

While 2023 and 2024 ushered in a slower spell caused by rising interest rates, 2025 has seen Bath’s property market start to pick up pace again, particularly with properties within the £300,000 to £500,000 range.

Today, lower mortgage costs and a boost in property demand are all helping to bring momentum back to Bath’s property market. As such, well-priced homes are quick to draw attention from both residential buyers and investors seeking long-term gains.

It’s no secret that Bath’s rare blend of historic charm, high rental demand, and tight housing supply makes it stand out as one of the go-to destinations in the UK. As a UNESCO World Heritage city, it’s subject to strict planning rules that help limit overdevelopment which is a standout feature for investors who are seeking property in a location that maintains stable property values, even when the wider market conditions take a wobble.

For investors focused on capital growth, Bath is forecast to see steady, sustainable increases – particularly in neighbourhoods with strong transport links, or within a close proximity to the city’s two universities.

According to ONS (Office for National Statistics) and local agent forecasts, Bath is expected to outperform many nearby towns in terms of long-term property value. For investors willing to play the long game, this could mean attractive returns as the market continues to stabilise and rental yields hold firm.

What Kind of Rental Yields Can You Expect in Bath?

Rental yields and property investment go hand-in-hand. If Bath has made it on your radar as a potential location for your property purchase, then you need to know exactly what sort of rental returns Bath can offer.

In truth, rental yields will always depend on the kind of property and tenant you’re targeting.

Typical buy-to-let mortgage investments in properties to rent in Bath can generate yields of up to 4.5%, providing a solid and steady return if you’re looking for lower-hassle investments.

On the other hand, student accommodation to rent in Bath and HMOs can see returns of up to 7% due to the consistent demand and flood of new students seeking accommodation for the city’s universities.

Additionally, if you’re targeting more short-term lets and those looking for holiday cottages to rent in Bath, the potential returns can be even higher. However, the management is more demanding with additional regulations to consider, resulting in the exact profit to have a tendency to fluctuate.

Here’s a quick snapshot according to the ONS on the types of property available in Bath and the kind of rental yields investors could expect to see in 2025:

What Areas of Bath are Best for Buy-to-let Investments?

There is no one-size fits all with property investment and not all areas of Bath offer the same opportunities for investors. Your ideal neighbourhood will depend on your budget, rental goals, and the type of tenants you want to attract.

Let’s take a closer look at some of the most promising areas for buy-to-let investments in 2025:

Oldfield Park

Just a short bus ride from both universities and the city centre, Oldfield Park is one of the most in-demand areas for student properties to rent in Bath. With a strong mix of Victorian terraces and HMOs (houses in multiple occupation) have long-made Oldfield park a favourite amongst landlords.

With such a high demand, landlords rarely face lulls in tenancy. As such, rental yields tend to be reliable and consistent, particularly for larger shared housing accommodation. As a well-connected and lively neighbourhood, Oldfield park is ideal if you’re looking to invest in buy-to-let housing with dependable returns.

Bathwick

Bathwick provides a more residential and upmarket atmosphere than Oldfield Park. As a result, property in this area is known to attract a slightly different tenant base, mainly postgraduate students, working professionals and families.

The area is home to a spread of elegant Georgian townhouses, converted flats and newer developments. It’s within walking distance of the University of Bath, city parks and the canals, and the properties here are often snapped up quickly.

As a more affluent area in Bath, property prices will typically be higher, however, the tenant quality and rental income will naturally reflect this. If you’re investing for long-term growth and lower tenant turnover, Bathwick might be the smart choice for you.

Twerton

Moving away from the higher affluence of Bathwick, Twerton is a perfect choice for those looking to invest in property with a much more affordable budget, but holds potential of strong returns.

Gaining popularity among investors, Twerton offers some of the most affordable properties to rent in Bath, with tenants varying from young families, students, and working renters. Naturally, the lower purchase prices mean higher rental yields, and can have the potential for profit to outperform property rentals in more expensive areas.

Central Bath and Bath Spa Station

For those looking for all things premium, from rents to constant tenant demand, central Bath is hard to beat. In particular, areas around Bath Spa Station are especially popular with professionals and short-term renters, with quick rail links to London and Bristol.

Modern apartments, Georgian conversions, and Airbnb-style lets can all be found in central Bath. As such, if your personal investment strategy involves executive rentals or furnished short-term accommodation, this is where you’ll find the footfall.

However, high property prices can result in the rental yields becoming tighter. As such, central Bath will best suit investors focusing on capital growth or lifestyle lets.

Is There Enough Property Supply in Bath for Investors?

While the demand for property in Bath is consistently high, the supply of rental properties in Bath is often much lower. This is mainly due to the attraction of Bath’s historic charm, strict planning regulations, and a limited amount of new-build development.

Each of these factors contribute to a limited supply of property, creating a housing market where properties are highly desirable but difficult to secure – especially in high-demand areas close to universities, transport links, or the city centre. Most notably, the demand for student properties to rent in Bath keeps competition fierce during term times.

With that said, those who do manage to secure a rental property, this unique market can often often translate into strong tenant demand and reliable rental returns.

As such, patients can pay dividends for investors who are ready to keep an eye on the Bath property market, and even more so if you’re open to properties that need a little ‘TLC’.

At Boon Brokers, we understand that finding the right investment property in a competitive market like Bath isn’t always straightforward. That’s why we offer whole-of-market, fee-free mortgage advice to help you move quickly when opportunities arise. Whether it’s a sought-after rental flat or a period property with renovation potential. With access to lenders across the UK, we can help secure the right deal to support your investment goals.

What are the Main Risks of Investing in Bath Property?

Like any property investment, the housing market comes with its challenges. Here are the key risks you need to keep an eye on:

• EPC Regulations: From 2025, landlords may need to upgrade their properties in order to meet stricter energy efficiency standards. This will inadvertently require a potential increase in management costs for older and less energy-efficient properties.
• Landlord Tax Changes: Ongoing tweaks to mortgage interest relief and other tax rules could reduce your overall rental profit.
• Upfront Costs: Stamp duty and legal fees remain high, particularly for first-time investors.
• HMO Compliance: Landlords looking to manage the costs of a HMO property will need to factor in the cost of an HMO licence and meeting regulatory standards.
• Lower Yields vs. Other Cities: Comparatively, Bath’s rental yields can be lower than hotspots like Manchester or Leeds. However, in return it provides a more long-term stability with reliable tenants that can often offset these initial lower yields.

What Property Investment Strategies Work Best in Bath?

When it comes to property investment in Bath, there’s no one-size-fits-all approach. The right investment strategy will wholly depend on your personal financial goals and the risks you want to take.

Fortunately, there are several viable investment routes and buy-to-let properties that can target a mix of professionals, students, tourists, and family tenants. Here’s a quick breakdown of the most common investment strategies for properties to buy-to-let in Bath:

As we’ve mentioned, choosing the right strategy will depend on how much time, capital, and effort you’re prepared to invest. For many, a standard buy-to-let will provide a steady rental yield alongside a more stress-free landlord ownership, with less hands-on work.

That said, if you’re chasing higher returns and are comfortable with more involvement, HMOs and holiday lets could deliver better yields, particularly in student-heavy areas like Oldfield Park or tourist hotspots near central Bath.

Final Verdict: Is Investing in Bath Property Worth It?

Whether property in Bath is worth investing in will depend on your personal finance and investment goals, however, Bath remains a standout choice for many who are looking to secure reliable rental yields.

Combining historic charm with modern amenities, the city of Bath attracts students, professionals, and families alike, all of whom keep the rental demand steady across the Bath’s property market.

At Boon Brokers, we understand how tricky investing in property can be – especially in a competitive market like Bath. Whether it’s your first buy-to-let or you’re growing a portfolio, our dedicated team of advisers offer free, no-pressure mortgage advice that is tailored to your needs.

As a whole-of-market brokerage, we have access to over 100+ lenders, including popular banks and specialist lenders alike. Our dedicated mortgage advisers are able to search the market to find the mortgage deal that matches your financial needs and investment goals.

Contact Boon Brokers today and start your property investment with confidence.