Bath Rental Market Report 2026: Trends, Yields and Outlook

Bath's rental market enters 2026 in a strong position for landlords who remain in the sector.

Executive Summary

• Average rents: £1,734/month—second only to Londonnationally

• Yield growth: South West yields increased from 7.27% to8.06% year-on-year—the highest growth of any UK region

• Tenant demand: 7-9 applicants per available property

• Supply pressure: 290,000 rental properties lost from thesector nationally since April 2021

• Landlord sentiment: Polarised—31% planning to exit, butprofessional landlords expanding

The market paradox continues:record landlord exits are tightening supply and pushing rents higher, creatingbetter returns for those who stay.

Rental Prices andTrends

Current Average Rents in Bath:• 1 bedroom flat: £1,100-1,300 (+6.5% YoY) • 2 bedroom flat: £1,400-1,650(+5.8% YoY) • 2 bedroom house: £1,500-1,800 (+7.2% YoY) • 3 bedroom house:£1,800-2,200 (+6.9% YoY) • 4+ bedroom house: £2,400-3,500+ (+8.1% YoY)

Rent Growth Drivers: • Supplycontraction from landlord exits • Limited new development (UNESCO constraints)• Strong employment base • Lifestyle desirability

How Bath Compares: • Bath:£1,734 rent, £580,589 average price, 3.6% yield • Bristol: £1,452 rent,£395,000 price, 4.4% yield • Plymouth: £1,156 rent, £145,826 price, 9.5% yield• South West Average: £1,394 rent, £358,000 price, 8.1% yield

Bath's high property valuesmean gross yields are lower than regional averages. However, capitalappreciation has historically compensated.

Rental YieldsAnalysis

South West yields have risenfrom 7.27% to 8.06%—the highest growth of any UK region.

Bath-Specific Yields: Grossyields typically range from 3.5-4.5%. However: • HMOs: 6-8% gross yields(requires licensing compliance) • Student accommodation: Higher yields butseasonal voids • Peripheral areas: Lower property values with relatively strongrents

Yield vs Total Return: Bathproperty values have grown from £320,000 (2015) to £580,589(2025)—approximately 80% capital appreciation plus ongoing rental income.

Tenant Demand andDemographics

Demand Metrics: • 7-9applicants per property • Average time to let: 14-21 days • Void periods:Minimal for quality properties

Who's Renting in Bath: • Youngprofessionals (35%): Budget £1,400-2,200/month • Students (20%): HMOs or sharedhouses • Corporate relocations (15%): Premium budgets • Families (15%): 3-4beds, £1,800-2,500/month • Retirees/downsizers (10%): Quality-focused

Supply Dynamics

National Context: • 290,000rental properties sold since April 2021 • Selling to buying ratio: 5.4:1 (was1:1 in 2021) • 31% of landlords planning to reduce or exit

Bath-Specific Factors: • UNESCOrestrictions limit new development • High entry costs for new landlords • HMOcontrols (Article 4 Direction) • Potential short-term let restrictions

Performance byProperty Type

Flats/Apartments: Strong demandfrom young professionals. Yield typically 3.5-4.2%.

Terraced Houses: Classic Bathhousing stock. Appeal to families and sharers. Yield typically 3.2-4.0%.

HMOs: Higher yields (6-8%) butmore intensive management. Licensing required.

Detached/Semi-Detached: Loweryields but attract premium tenants seeking longer tenancies.

Bath Area Analysis

Central Bath: Premium rents,premium prices. 3.0-3.5% yields. Young professionals, corporate lets.

Oldfield Park: Popular withstudents and young professionals. 4.0-5.0% yields (higher for HMOs).

Larkhall/Fairfield Park:Village feel. Popular with families. 3.5-4.0% yields.

Weston/Newbridge: Moreaffordable, better yields. 4.0-4.5% yields.

Bathwick/Widcombe: Desirable,close to centre. 3.5-4.0% yields.

2026-2027 Outlook

Rent Forecast: 4-6% annualgrowth expected. Driven by supply contraction, limited development, strongemployment, and mortgage rate stabilisation.

Market Risks: Regulatoryimplementation, interest rate sensitivity, economic downturn.

Opportunities: Consolidation assmaller landlords exit, rent growth, competitive advantage from professionalstandards.

Key Takeaways

• Bath's fundamentals remain strong

• Yields are lower than regional averages but compensatedby capital appreciation and tenant quality

• Regulatory changes require adaptation but don't underminethe investment case

• Professional management becomes more valuable as rulestighten

• Those who stay and adapt will benefit from reduced competition