Is Bath or Inner London better for buy-to-let?

Bath has the higher average gross yield at 3.8%, while Bath has the lower average purchase price at £485,000. Higher-yield markets suit cash-flow investors; lower-yield, higher-price markets tend to be capital-growth plays.

What is the average rental yield in Bath?

The average gross rental yield in Bath is approximately 3.8%. On a typical £485,000 property that works out at roughly £1,536 per month in rent before mortgage costs, letting fees, insurance and maintenance. Net yield after costs is usually 1.5–2.5 percentage points lower.

What is the average rental yield in Inner London?

The average gross rental yield in Inner London is approximately 3.8%. On a typical £550,000 property that works out at roughly £1,742 per month in rent before mortgage costs, letting fees, insurance and maintenance. Net yield after costs is usually 1.5–2.5 percentage points lower.

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Location comparison

Bath vs Inner London for Property Investment

Bath leads on gross yield at 3.8%, while Bath has the lower entry price at £485,000. Here is how the two markets compare on yield, price, deposit and tenant demand.

Bath vs Inner London at a glance

Metric	Bath	Inner London
Average gross yield	3.8%	3.8%
Average property price	£485,000	£550,000
Implied monthly rent	£1,536	£1,742
25% deposit	£121,250	£137,500
Stamp duty (additional property)	£36,000	£42,500
Population	95,000	2,500,000
Region	South West	London
Investor rating	Average	Average

Bath

The market skews towards period houses, detached family homes and premium new-build apartments, so entry prices sit well above the national average. Tenant demand is underpinned by local employment in services, healthcare and logistics, supported by a population of around 95,000. On the average £485,000 purchase, a 3.8% gross yield implies roughly £1,536 per calendar month in rent — a useful sanity check when you are reviewing a listing. World Heritage city with premium but constrained market.

Consider carefully
Standard buy-to-let
Consider carefully
HMO / rent by the room
Consider carefully
First-time landlord

Full Bath guide

Inner London

The market skews towards period houses, detached family homes and premium new-build apartments, so entry prices sit well above the national average. Tenant demand is underpinned by commuters using the town's rail and road links, public-sector employers including hospitals and councils, supported by a population of around 2,500,000. On the average £550,000 purchase, a 3.8% gross yield implies roughly £1,742 per calendar month in rent — a useful sanity check when you are reviewing a listing. Balance of yields and growth with excellent transport.

Consider carefully
Standard buy-to-let
Workable
HMO / rent by the room
Consider carefully
First-time landlord

Full Inner London guide

Which is the better investment?

If monthly cash flow is your priority, Bath is the stronger option on paper at 3.8% gross. If you want the lower capital commitment, Bath needs around £121,250 as a 25% deposit. Averages only take you so far, though — run the actual listing through PropertyROI before you offer.

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