Gloucester vs Southampton for Property Investment
Gloucester leads on gross yield at 5.2%, while Gloucester has the lower entry price at £275,000. Here is how the two markets compare on yield, price, deposit and tenant demand.
Gloucester vs Southampton at a glance
| Metric | Gloucester | Southampton |
|---|---|---|
| Average gross yield | 5.2% | 5.2% |
| Average property price | £275,000 | £295,000 |
| Implied monthly rent | £1,192 | £1,278 |
| 25% deposit | £68,750 | £73,750 |
| Stamp duty (additional property) | £15,000 | £17,000 |
| Population | 135,000 | 255,000 |
| Region | South West | South East |
| Investor rating | Good | Good |
Gloucester
Expect a spread of semi-detached family homes, period conversions and new-build apartment schemes, with terraces concentrated in the older inner areas. Tenant demand is underpinned by local employment in services, healthcare and logistics, supported by a population of around 135,000. On the average £275,000 purchase, a 5.2% gross yield implies roughly £1,192 per calendar month in rent, a useful sanity check when you are reviewing a listing. Affordable cathedral city with regeneration underway.
- Consider carefullyStandard buy-to-let
- WorkableHMO / rent by the room
- WorkableFirst-time landlord
Southampton
Expect a spread of semi-detached family homes, period conversions and new-build apartment schemes, with terraces concentrated in the older inner areas. Tenant demand is underpinned by a large student population, public-sector employers including hospitals and councils, supported by a population of around 255,000. On the average £295,000 purchase, a 5.2% gross yield implies roughly £1,278 per calendar month in rent, a useful sanity check when you are reviewing a listing. Major port city with two universities.
- Consider carefullyStandard buy-to-let
- Strong fitHMO / rent by the room
- WorkableFirst-time landlord
Which is the better investment?
If monthly cash flow is your priority, Gloucester is the stronger option on paper at 5.2% gross. If you want the lower capital commitment, Gloucester needs around £68,750 as a 25% deposit. Averages only take you so far, though, so run the actual listing through PropertyROI before you offer.
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