Rental yields›South West›Cheltenham
Rental yield in Cheltenham
Cheltenham ranks 10 of 26 areas in the South West for rental yield, at 4.7% gross.
Cheltenham sits in the upper half for rental yield in England and Wales, a bit above the 4.4% typical figure across all 316 areas.
Over the past year, average prices in Cheltenham rose 0.3% and average rents rose 4.8%.
Average gross yield
4.7%
#115 of 316 areas
Average price
£322,758
▲ 0.3% past year
Average rent
£1,261/mo
▲ 4.8% past year
Privately rented
23.4%
of 52,899 homes
Average rent by size
1 bedroom
£869/mo
↑ +4.9% / yr
2 bedrooms
£1,096/mo
↑ +4.8% / yr
3 bedrooms
£1,354/mo
↑ +5.1% / yr
4+ bedrooms
£1,908/mo
↑ +4.2% / yr
Average private rent by number of bedrooms, across new and existing tenancies. ONS Price Index of Private Rents (August 2026).
Council tax bands (2026-27)
Band A
£1,580
Band B
£1,843
Band C
£2,107
Band D
£2,370
Band E
£2,897
Band F
£3,423
Band G
£3,950
Band H
£4,740
Average annual bill for the area, including police and other precepts (MHCLG and Welsh Government, 2026-27). Community precepts vary, and the band is set by the property, so check the exact band on gov.uk.
How it compares
Deprivation (IMD 2025)
77 neighbourhoods
3% of Cheltenham's neighbourhoods are in England's most deprived 10%. The typical one sits in the less deprived half of the country.
Fifths of England, most to least deprived (MHCLG IMD 2025). It shifts street by street, so check a specific postcode.
Cheltenham has 1 Article 4 area restricting HMO conversions in the national planning dataset, where turning a family home into a small house-share needs full planning permission.
Check on the Article 4 map →Work out the yield on a specific property
Pre-filled with the Cheltenham average. Change them for a real property.
That is right on the Cheltenham average of 4.7%. Add costs for a net estimate.
Nearby areas
Areas with a similar yield
Common questions
Is Cheltenham a good place to buy to let?
It is around the middle for rental income, at a 4.7% average gross yield. Whether it works depends on the specific property, so always run the actual numbers.
Are rents rising in Cheltenham?
Over the past year, average rents in Cheltenham rose 4.8% and average prices rose 0.3% (HM Land Registry and ONS, to August 2026).
Is there rental demand in Cheltenham?
Rent movement is the best free proxy for tenant demand, and average rents in Cheltenham rose 4.8% over the past year (ONS), which points to tenants competing for available stock. Still ask local letting agents about typical void periods before committing to a buy-to-let there. For the size of the market: at the 2021 census, 23.4% of Cheltenham's 52,899 households rented privately (12.2% social rented, 63.6% owner occupied).
What is the average rent for a 1, 2 or 3 bedroom property in Cheltenham?
As of August 2026, average monthly rents in Cheltenham by property size are £869 for a 1 bedroom property, £1,096 for a 2 bedroom property, £1,354 for a 3 bedroom property, £1,908 for a 4 or more bedroom property (ONS). The all-size average is £1,261 a month.
How much is council tax in Cheltenham?
In 2026-27, the average Band D council tax in Cheltenham is £2,370 a year including police and other precepts. Bills scale with the property's band: from £1,580 for Band A up to £4,740 for Band H. Community precepts vary within the area, so treat these as area averages and check the exact band and bill with the council.
How deprived is Cheltenham?
On the English Indices of Deprivation 2025, 3% of Cheltenham's 77 neighbourhoods are in England's most deprived 10%, and 39% are in the least deprived 10%. The typical neighbourhood is in decile 9 of 10, where 1 is most deprived. Deprivation shifts street by street, so check the exact postcode before you offer.
What is a good rental yield in the UK?
As a rough guide, under 4% is low, 5 to 6% is typical, and above 6.5% is high. Cheltenham is at 4.7%.
Gross yield = annual rent divided by average price. Average price: HM Land Registry UK HPI (July 2026). Average rent: ONS Price Index of Private Rents (August 2026). Deprivation: MHCLG English Indices of Deprivation 2025. Regions: ONS. Local-authority averages across all property types, indicative only. Contains public sector information licensed under the Open Government Licence v3.0. Not investment advice.