Rental yields›Cheltenham
Rental yield in Cheltenham
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 2.2% and average rents rose 4.3%.
Gross yield
4.6%
Average price
£325,399
↑ +2.2% / yr
Average rent
£1,259/mo
↑ +4.3% / yr
National rank
#126 of 316
Who rents here
Census 2021, 52,899 households
23.4% of homes in Cheltenham are private rentals.
Average rent by size
1 bedroom
£869/mo
↑ +4.5% / yr
2 bedrooms
£1,095/mo
↑ +4.4% / yr
3 bedrooms
£1,352/mo
↑ +4.5% / yr
4+ bedrooms
£1,906/mo
↑ +3.6% / yr
Average advertised rent by number of bedrooms. ONS Price Index of Private Rents (2026-07).
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.
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 4.6%. Add costs for a net estimate.
How it compares
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 4.6% 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 4.3% and average prices rose 2.2% (HM Land Registry and ONS, to 2026-07).
Is there rental demand in Cheltenham?
Rent movement is the best free proxy for tenant demand, and average rents in Cheltenham rose 4.3% 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 2026-07, average monthly rents in Cheltenham by property size are £869 for a 1 bedroom property, £1,095 for a 2 bedroom property, £1,352 for a 3 bedroom property, £1,906 for a 4 or more bedroom property (ONS). The all-size average is £1,259 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.
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 4.6%.
Gross yield = annual rent divided by average price. Average price: HM Land Registry UK HPI (01/06/2026). Average rent: ONS Price Index of Private Rents (2026-07). Local-authority averages across all property types, indicative only. Contains public sector information licensed under the Open Government Licence v3.0. Not investment advice.