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Cheltenham – What to look for in houses for sale?

by | Nov 15, 2022

Home $ House for sale in the UK $ Houses for sale in the South West $ Cheltenham – What to look for in houses for sale?

Sometimes, working out the prices of the houses for sale can be tricky business. This is why we created this article all about the price of houses for sale in Cheltenham, Gloucestershire.

From the average asking price of houses for sale in Cheltenham to the growth of the population in the area, all will be talked about regarding the city of Cheltenham. So you will get better clued up on the area, and make finding a house for sale in the UK easier.

In Cheltenham, what are the rental yields?

Assuming you are not looking for a house for sale in a certain area because of private reasons such as being close to a family member or you have been relocated to a new office, these are some of the factors to consider in order to understand if an investment is worth your money.

Investors typically look at data such as the average rental yield, the average asking price of rent per month, rent turnover and sale turnover. These KPIs give property investors a solid idea of how the market is performing in that area.

For the city of Cheltenham, the below table demonstrates this well. To make things simple, it compares these numbers to the wider region of the UK; South West. As well as Gloucestershire, to give a smaller scale area to compare the data to.

Average Yield Average Asking rent Turnover (rental) Turnover (sale)
Cheltenham 2.9% £1,061 140% 17.0%
Gloucestershire 3.43% £1,098 129.75% 16.64%
South West 3.57% £1,079 132.66% 17.35%

Assuming that in the future you want to re-sell the house you will eventually purchased in Cheltenham you might be interested in the number of sales per month (48) that happen in the local housing market. Comparing this figure for Cheltenham with the above table gives you a good understanding of the profitability of the area.

In Cheltenham, how has the number of houses changed?

The growth of an area like Cheltenham can be a great indicator of a thriving city and the influx of new people can drive demand for housing and help appreciate the value of your house after you buy it.

Paying attention to the table below tells you how the number of houses has changed over time at one year, three year and five year intervals.

1 year 3 years 5 years
Cheltenham growth rate -1% 9% 21%

Despite the number of houses being built rising, this may not indicate that the housing price of the houses for sale is going up. It could be the case that there are a lot of new builds in the area which are causing the supply of the houses for sale to match demand and this could cause a decline in house price as time goes on.

Make sure you do your own research specific to the city of Cheltenham if you want to find out the exact reasons for the housing change.

What are the asking prices for the houses for sale in the city of Cheltenham?

Table showing the asking prices for houses for sale in Cheltenham

Average asking price (1 bed) £186,465
Average asking price (2 bed) £329,294
Average asking price (3 bed) £486,080
Average asking price (4 bed) £723,695
Average asking price (5 bed) £1,368,333

Reading the table above should therefore give you a good idea of the type of house for sale that is within your budget in Cheltenham and if you may need to look at a different area in order to buy the type of house you can afford.

Also, noting the £0 should also give you an overview of what the asking price for houses for sale are in general.

As you go ahead and make offers on a house for sale, it is sometimes best to know what other people are offering for the same type of house for sale so you know what to offer yourself to get a good deal. So you should know, the average asking price of Cheltenham is £468,323.

Even though the asking price is not what the eventual price the house is sold at, making a note of the averages for the city of Cheltenham is useful when negotiating and knowing what to expect for every type of house for sale.

What kind of demographics does the city of Cheltenham have?

Are the people in Cheltenham earning a lot?

By and large, a higher household income in a population can have positive effects on the crime rate and the quality of space. This is due to the fact that higher earners tend to buy houses where there are better schools and more desirable amenities that impact the quality of life someone has.

In Cheltenham, the average income is £46,350. Measuring this figure against the average household income for the UK of price34,000 should tell you if the city is higher or lower earning.

When buying a house, use this statistic with other factors when making a decision too like the crime rate or the social grade score of 38% to decide on what the demographics are like in the area.

Are the deprivation levels of the UK any different to Cheltenham?

The number of people who are deprived can have an impact on the perception of your house in the general marketplace. Additionally, if you are looking for a house to live in for the long term, you can start to picture what your neighbours and the people in your area live like financially.

If the proportion of deprivation of Cheltenham is 16% and in general for the UK this figure is somewhere around 33%, you can see if this figure is something you are happy with as you search for a house to buy.

In Cheltenham, what is the crime rate?

Within Cheltenham, the number of people committing crimes is 131 per 1000 people. This figure directly relates to the safety of residents in the area which is one of the biggest factors in whether an area is considered desirable or not.

As a result, someone looking to buy a house here hoping for it to appreciate in value or buying a house here to produce rental income should check out the crime rate and compare it carefully to the UK average of 79.52 for every 1000 people to see how safe people living there will be.

If the area’s crime rate is too high, this may result in you having to pay for the renovation of burglaries or pay a premium on home insurance as insurance companies will charge you more for living in a dangerous area. So analyse this 131 figure carefully.

For the city of Cheltenham, what is the education level?

In the city of Cheltenham, 44% of people have degrees. In general, as the number of people who are highly educated goes up, the more likely they are to have the ability to buy houses as their annual household income goes up too.

So you can see for yourself, the average income for the people of Cheltenham is £46,350. This generally goes up with the education level of the area. Additionally, looking at the difference between the proportion of people with degrees and the UK average for this statistic (22.6%) should give you an idea of the affluence and education of the city.

A higher education level can therefore tell you if the house prices are likely to be high as the higher income level often results in people buying a bigger, more valuable house.

Having said this, whale education level can be a good factor to go by, there are also things like the rental yields, the population growth and social grades scores that can impact the value of a house and whether it will go up in value as time goes on.

What is the social grade score of Cheltenham?

Most of the time, the social grade score of a city is what it takes to determine what the economic levels are like as this score refers to what type of jobs the people of the area generally work as. So, from highly skilled, managerial roles, to the manual labour workers of the UK, how does Cheltenham compare?

At the highest end of the scale (A) jobs that are managerial administrative or professional are all lumped into this category. On the other hand, there is the lowest grade (E) where workers who are on benefits, state pensions or work casual jobs fall into.

In Cheltenham, the percentage of people who work in the two highest skilled categories of this scale (A and B) is 38%.

So you can compare this data, here is the estimated grouping of the social grades of the UK for the general population. Adding the two highest categories of A and B and comparing this percentage to the high social grade score which combines A and B should give you a good comparison.

Social Score Category The proportion of the UK population (%)
A Professional, managerial or administrative 4
B Intermediate managerial or professional jobs 23
C1 Supervisory, junior managerial or professional jobs 29
C2 Skilled manual workers 21
D Semi and unskilled manual workers 15
E State pensioners, casual & lowest grade workers 8

In the city of Cheltenham, how much green space remains for residents?

In the city of Cheltenham, there are 19.3 acres of green space per 1000 residents.

The charity, ‘Fields in Trusts’ recommends a minimum of 6 acres of green space per 1000 people so it is easy to see where Cheltenham is when seeing if green space availability is sufficient. This green space could be parks, nature reserves, public gardens or playing fields.

What does the population of Cheltenham look like?

In total, the number of people in Cheltenham is 42,616. This figure can be used to estimate the appreciation of the houses but it is also important you look at the population growth figure in order to make this more accurate.

Whether a large population benefits you as a landlord is dependent on what you want from a home. A large population is great if you have children who prefer the bustle of crowds in cities but there are also those who purposely want to buy somewhere rural.

You may also be able to find a balance of both where there are shops, restaurants and entertainment and also rural areas all within a short distance which may be the case ni Cheltenham, depending on where exactly you are.

How has Cheltenham changed in the past five years?

Five years provides enough time for a city to grow dramatically. It may be the case that the population grows or shrinks but the city of Cheltenham has changed by -1%. Read more here

It is also helpful to compare this data to a longer time period like 10 years like in the below subheading. If the population trend of growth or decline has been there for a longer period of time you’ll be able to tell if -1% is a recent change or not.
Click here to know more on the UK population trends.

In the last decade, what is the difference in population in Cheltenham?

2% has been the population growth change in the past 10 years.

Usually, this is more of a conservative figure compared to the five year change of a city.

Industrial changes can also be the reason for this shift but it could also be due to immigration or emigration. Bringing people in or out of the area.

The recent global pandemic has also shifted the number of people living in cities as people realise they can now work remotely. It may be that the people of a Cheltenham have seen a more desirable way of working, moving to make themselves more comfortable in their careers.

For example, the population of the South west of England has seen a massive increase in population because workers want to move there to benefit from the slightly better weather, lower house prices and also the rural area. Nonetheless, they can also benefit from travelling to the capital city of the UK, London.

Cheltenham within Gloucestershire is notable for the type of people that live there. The statistics below show how this is the case.

As you read on, Cheltenham will be looked at by comparing it to the local region, as well as comparing it to the wider region too (South West). From what the population of the city is to how it’s growing as well as factors like the overall crime rate.

This data is impacted by the history of the area and what kind of industry there is around. All of which also impact house prices which is crucial for you to understand as you look at houses for sale in Cheltenham.

In general, what do houses for sale sell for in Cheltenham?

For the city of Cheltenham, the average price a house sells for is £367,570. This value usually depends on the exact location of the house within Cheltenham as well as other factors like the population growth in Cheltenham which is 2% over a ten-year period.

Housing category Total final sale price
Aerage sold price (detached) £571,728
Aerage sold price (semi-detached) £372,830
Aerage sold price (terraced) £313,222
Aerage sold price (flat) £213,408

The above table puts this figure into perspective as you can see the various average sale prices of a house for the specific type of house you’re most interested in. This comparison is important because the type of house you’re considering to buy may be more or less in demand based on variations in supply and demand in the city of Cheltenham.

Housing category Sale price per square foot
Aerage sold price/sqft £3,645
Aerage sold price/sqft (new build) £4,145
Aerage sold price/sqft (old stock) £3,525

Generalising the bottom table, the average value per square foot of a house for sale is £3,645. This value averages all of the types of houses for sale in Cheltenham. So, if you’re not sure what type of house you want specifically, you can still get an idea of the real estate market of Cheltenham.

Who can help you buy a house for sale in Cheltenham?

House for sale in the same UK region

We have prepared a list of cities in South West, the same UK region of Cheltenham that can help you evaluate the different houses for sale listed in the region:

Alternatively, you can visit our webpage dedicated to houses for sale in the UK, houses for sale in the UK.

Considering all the above data and information provided, you may want know who can help you buy a house for sale.
Lots of professionals offer property investors and first-time buyers advice and assistance in dealing with the process of acquiring a house for sale.

Below, you can find a list of professionals that come in handy when looking for houses for sale:

  • Lender – Is someone capable of lending you the money you need to complete the purchase of the house for sale
  • Insurer – Insurance companies provide building insurances and other financial products you need to protect your real estate assets
  • Conveyancer – This professional will take care of the legal work needed when looking for a house for sale
  • Surveyor – Use this professional to assess the condition of the house for sale you are willing to buy, get an independent valuation and feel more comfortable when negotiating the final price
  • Mortgage broker or adviser – Different buyers can access different mortgages to buy a house for sale. Let the mortgage broker suggest to you which one is the best given your financial situation
  • Energy professional – Nowadays is more important than ever, to get professional advice on the Energy Performance Certificate (EPC) of the house for sale you are considering as your next investment

Invest in a house for sale that meets your demands

Find here below a list of criteria that we suggest you consider before looking for houses for sale in Cheltenham

  • affordability – the UK gov website comes in helpful when you want to understand (see what house for sale you can afford)

  • Geographic Location – the county and region across the UK you are considering to invest in are crucial factors to consider when browsing houses for sale.

  • Transport network of the house for sale – Hopefully, the pandemic stays in the past. Therefore, working from home may become less predominant than a couple of years ago. Check the commuting time of the house for sale you are considering buying.

  • Bedrooms in the house for sale – are you looking for houses for sale for yourself, for a couple or for the whole family? This condition will narrow down the number of houses for sale relevant to buy.

  • EPC of the house for sale – today more than ever, the energy performance of the properties for sale on the market should be one of the first things you check.

  • Broadband speed – having a good internet connection is crucial nowadays. Always check the available subscriptions available for the areas of the house for sale you want to purchase

  • Are you a car owner? – if yes, you will have to check for parking availability of the house for sale. Does it come with a garage included in the price?

  • Conservation areas – when browsing for houses for sale, we suggest you take a look at the National Heritage list. When a house for sale is included it means that it is not possible for the future homeowner to make changes to the property, both inside and outside.

  • Houses for sale Conditions – some properties, like new builds, need no repairs or works; other houses listed for sale may need some investment to restore them and some others may need a complete renovation. Someone looking for houses for sale should always think about how much time and money they are willing to invest to complete the needed repairs.

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