Local market report and housing update
Winter 2022/23
Snapshot & Location
Bath, the largest city in Somerset, has long been popular for its beautiful, historical and iconic architecture and spa baths, so much so that it is in fact a UNESCO World Heritage Site. Many of the buildings and architecture that the city is known for come from the 17th century Georgian era, made using the locally sourced golden yellow Bath stone. Examples of this include The Royal Crescent, the Circus, and Pump Room and Assembly Rooms located in the heart of the city.
Location Map
Local demographics & economic trends
The population of Bath and North East Somerset is estimated to be 198,503, reflecting an increase of 12% in the last decade, equating to an additional 22,480 people in ten years. Looking ahead, the population is expected to continue to rise, increasing by 14,900 people over the next ten years, equivalent to 8% growth.
Bath has a high level of employment with an employment rate of 76.7%, compared with 75.5% nationally, and an unemployment rate of 2.5%, compared with 3.8% nationally. Of those employed in the area a high number of them are employed in Managerial, Professional and Associate Professional occupations, making up nearly 60% of all occupational groups.
Connectivity
Bath is approximately 11 miles south east of the larger city of Bristol but it is linked via the A4 road which runs through Bath. Since March 2021 the city introduced a congestion charging zone in the city centre, the first of its kind outside of London in the UK. As a result of the congestion zone, many park and ride schemes were introduced and the area has extensive bus coverage as well. Bath is also served by Bath Spa railway station with regular connections to London Paddington, Bristol Temple Meads, Cardiff, Plymouth and many other points along the Great Western Main Line.
The local Housing Market
Sales Market
Average house prices by property type and location
Bath & North East Somerset
South West
England and Wales
Detached
Semi-detached
Terraced
Flat
Overall Average
£772,217
£472,694
£399,474
£299,422
£449,702
£542,979
£350,052
£284,725
£200,248
£339,206
£488,076
£298,211
£253,644
£253,542
£311,074
Source: HM Land Registry (October 2022, latest data)
"The latest data shows that average house prices in Bath and North East Somerset grew by just under 14% over the last year"
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Rental Market
According to the latest data from the Office for National Statistics (ONS) (Q1 2022), average rents across the wider Bath and North East Somerset area are £1,306 per calendar month (pcm). This is over 45% above the wider South West average of £898 pcm. On the upper quartile, rents were found to have reached an average high of £1,575 across the BANES area.
Bath
Bath’s rather modest size (the population is estimated at just under 200,000) as well as its beautiful, rolling hill countryside that surrounds it, has made it a popular location for all types of people and households including young professionals, families and older generations alike. It is within easy reach of the larger nearby Bristol (11 miles) and still just 97 miles west of London.
The area is known for its large historic townhomes that dot the city centre as well as beautiful detached and semi-detached homes often with large gardens and sprawling countryside manors just outside the central area. The historic nature of many of the homes in and around Bath cannot be overstated and it is these such properties which make the area incredibly popular for those looking for period, character-filled residences.
The city boasts strong software, technology, information and communication as well as creative and publishing-oriented industries while the public sector employs thousands in the area including those with the NHS, its two local universities, as well as the Ministry of Defence. Average earnings in Bath are currently estimated at £39,268, around 3% above the national average.
The centre of Bath attracts a large number of students due to housing two major universities: The University of Bath and Bath Spa University, which together host around 27,000 students. Despite this high number of students, the private rented sector is not unusually large for the area, making up 19% of all types of tenure.
This is because student housing is well catered-for in Bath and while there are many students who will still prefer to rent privately rather than in specific student halls, it hasn’t tipped the scales of what would be a usual mix of tenure types. For example, 66% of all households in Bath and North East Somerset are owner occupiers, which is largely in line with the national average.
Bath is also a popular shopping destination, offering a wide range of independent and high street shops and boutiques. The compact city centre provides a great mix of shops amid the backdrop of lovely Georgian architecture along the length of the city. There are pedestrianised streets and alleyways tucked off main hubs flanked by galleries, antique shops, designer brands and independent boutiques aside some of the country’s most beautiful buildings. Visitors and locals come from far and wide to enjoy the city’s shopping and retail offerings.
2032 forecast
population
(number)
213,413
Ten-year forecast population
(% change)
8%
Bath and the surrounding area are home to dozens of well-regarded primary and secondary educational institutions of all types including independent, state, faith, and preparatory/private. Location based on nearby top-performing primary and secondary schools is often a very strong factor in deciding where to move and locate, with proximity to the best schools strongly correlated to local average house prices. Research has shown that homes located near top-performing schools can add anywhere from £30,000 - £60,000 to home values. There are 13 ’Outstanding’ schools in and around Bath (Bath and North East Somerset) and a further nine independent preparatory (private) schools.
The latest data shows that average house prices in Bath and North East Somerset grew by just under 14% over the last year, compared with 13% across England and Wales. Over the longer term, there has been over 35% value added to the average house in the area since the pandemic (February 2020), leading to a current value of £449,702 and adding approximately £117,800 to the price of a property over the period.
The Local Housing Market
Average house price
Average house price growth
Average rent
(£ per calendar month)
Annual rental growth
Gross Yield
£449,702
13.9%
24%
£1,594
3.9%
Sources: HM Land Registry (October 2022, latest data), REalyse
We note that in the more localised immediate Bath area, average rents are now around £1,594 pcm, reflecting a robust increase of 24% over the last 12 months (REalyse). Rents have come under increasing upward pressure in the area as the amount of available stock continues to decline. As a result, gross yields have also moved out, moving from around 3.3% in 2021 to nearly 3.9% by the end of 2022. Looking ahead, we expect that rents will continue to rise, although we anticipate more modest growth of between 4 and 6% over the coming 12 months.
Sources used: Carter Jonas Research, Experian, Google maps, HM Land Registry, Office for National Statistics, REalyse, Rightmove
Notes: REalyse rental data 12-month rolling average
Get in touch
Email me
01225 747250
Sales
David Mackenzie
Email me
01225 747250
Lettings
Sharon Hunter
For further information, please get in touch with one of our local experts
Proportion of population who are owner occupiers
66%
Proportion of
population who are private renters
19%
Average annual
income
(2022, provisional)
£43,198
Five-year projected house price growth (cumulative)
7.7%
Notes: Average house prices: Bath and North East Somerset. Rental rates
areas: five-mile radius from centre. Projected house price growth, incomes
and demographics data, areas: Respective local authority
