Gloucester House Prices up 65% in 10 Years
- Gloucestershire house prices are 4.2% higher than one year before.
- Land Registry data shows sales volume is still well below normal levels.
- Property prices in Gloucestershire peaked in October and are likely to break records this spring/summer.
- Cotswold remains the most expensive district to buy a home in Gloucestershire. Gloucester is the cheapest but has the highest crime rate.
- Gloucester has the greatest 10-year property price growth. Year-on-year it's Tewkesbury.
- Across the Southwest, house prices are expected to increase 21.6% over the 5 years to 2029 (Savills).
Are house prices going up in Gloucestershire?
Average house prices across Gloucestershire have risen 4.2% since last year, in line with England and Wales, also at 4.2% house price growth in the same period.
Average house prices in Gloucestershire peaked in October 2024 at £323,181 before falling to £319,175 in December, in line with typical seasonal trends. We expect to see more record-breaking highs as sold prices for the spring are released by the Land Registry.
Worst October for Gloucestershire property sales since the Credit Crunch
October saw just 627 property sales across the county. Monthly property sales in Gloucestershire were down at 585 in October 2008.
We expect spring data to show the market picking up again since the February base rate fall, but changes to Stamp Duty Land Tax effective from the 1st of April will continue to affect affordability and limit movement in the property market.
Will there be a UK recession in 2025?
The Quarterly Economic Forecast (QEF) predicts the UK economy will grow by 1.3% in 2025 and 1.5% in 2026. Source: British Chambers of Commerce (BCC).
This, however, is well below the pre-pandemic average. NEISR estimate that Britain's poorest households will not recover fully until 2027.
How does the Bank of England affect the Gloucestershire Housing Market?
Borrowing has been returning to a more affordable level, but very slowly. The February cut to 4.5% means that mortgage rates will follow. The Bank of England has held base rates at 4.5% this month due to higher-than-expected inflation, consistent with their plan to bring the cost of borrowing down slowly to keep the economy stable.
Thousands of remortgagers and home buyers in Gloucestershire and the rest of the country have begun preparing to move now slightly lower mortgage rates are available, but many will have to hold out a little longer if the current rates are still out of reach. As the market begins moving again, prices will be driven gently upward, particularly in more affordable areas.
Oxford Economics is predicting the base rate will eventually fall to 2.5% in 2027.
Are you thinking of buying or selling a property in Gloucestershire?
Cheltenham has the most active property market YoY
Sales volume across Gloucestershire is -18% year-on-year (YoY), but Cheltenham is just as strong, with the same number of sales in October 2024 and 2023.
Cheltenham is a Spa town and cultural hotspot, home to the Cheltenham Literature Festival, the Cheltenham Jazz Festival, the Cheltenham Science Festival, the Cheltenham Music Festival, the Cheltenham International Film Festival, the Cheltenham Cricket Festival and the Cheltenham Food & Drink Festival, as well as the internationally famous horse races, the Cheltenham Festival.
Stroud is an arty, folky market town with a big hippie scene and second strongest at -2%. Cotswold is weakest at -37%.
However, sales volume was already dampened in 2023, compared to pre-covid levels. When we look at current sales volume versus the same month ten years ago, when things were relatively 'normal', Tewkesbury fares best, at -24% of October 2014's property sales, compared to -49% average through Gloucestershire. Gloucester itself is the clear loser, now -61% over ten years.
Are houses in Gloucestershire expensive?
Average property prices in Gloucestershire vary by district from £280,748 to £444,114.
Unsurprisingly, average house prices in Cotswold are highest at £444,114; 31% more expensive than the next most expensive district, South Gloucestershire (£339,008), 39% more expensive than the average for the county of Gloucestershire (£319,175), and 56% more expensive than the average for England and Wales (£285,089).
Cirencester is a charming market town in the River Church in the Cotswolds and home to the Royal Agricultural University, with house prices around £400,000.
House prices in Gloucester (£241,024) and the Forest of Dean (£280,748) are less expensive than the average for England and Wales.
House prices in South Gloucestershire are in part driven by proximity to Bristol, with towns like Filton and Kingswood forming part of Bristol's larger urban area.
Where is the cheapest place to buy in Gloucestershire?
The cheapest district in Gloucestershire is Gloucester, at £241,024, but this is led by Terraced houses. The cheapest Flats and Maisonettes, Semis and Detached properties are in the Forest of Dean. Cinderford is particularly affordable.
Records broken for house prices in Gloucestershire
The average house price across England and Wales finally beat the 2022 peak in August and has remained above the 285k mark since.
Seperately, every district in Gloucestershire reached record highs since August, and we can expect many of these highs to be beaten in spring/summer 2025.
Savills predict a relatively modest 2.5% average growth across the South West for 2025 but a much stronger 5.5% growth next year.
Tewkesbury property prices soar
Tewkesbury saw a massive 11% year-on-year price growth, far ahead of the 4.2% average for Gloucestershire and England & Wales, and runners-up South Gloucestershire (+5.3%) and Cheltenham (+4.5%). Forest of Dean (+3.4%), Gloucester (+3.3%) and Stroud (+3%) all fell under the national average, with Cotswold barely moving (+0.1%).
Double-digit growth isn't unheard of for Gloucestershire, but not since early 2023.
Long-term Gloucestershire property market investment
Flanked either side by the Cotswolds and Forest of Dean, outdoor space and fresh air combined with a strong job market, excellent transport links, and regency charm have driven house prices in the cathedral city of Gloucester, proving it the best long-term investment in the county over the past ten years.
House prices in Gloucester are 65% higher than they were ten years ago, followed by the second most expensive district, South Gloucestershire (+63%), then Tewkesbury (+61%), Cheltenham (+57%), Forest of Dean (+54%) and Cotswold (+53%).
Long-term house price growth has been slowest in Stroud (+50%), but even this district is only 2% behind the national average (+52%). Stroud is followed by
Despite below-average year-on-year growth, buying in Gloucester may be your best long-term investment for the county. If you'd prefer something more rural, consider Churchdown, a popular village well-placed between Cheltenham and Gloucester.
New homes in Gloucestershire are now 41% more expensive than existing properties
Brand new houses have always been more expensive than existing ones. But the difference has more than doubled from 20% in a single year and now stands at £128,997 in Gloucestershire.
If you exclude newly-built properties, you can see price growth has been fairly static since the end of 2022 and last year's uptick in the graph at the top of this page is being exaggerated by expensive new builds.
This is great news for hopeful first-time buyers who are looking to buy a pre-existing home and are still saving for a deposit, as existing property in Gloucester is only 1% higher than its peak of November 2022.
New builds lose up to around 7% of their value after purchase, much like a new car the minute you drive it away (source: Toomey Legal, Sloth Move).
"This disparity in price will fuel nearby house prices up as estate agents use these potentially over-priced local comparables when setting sale prices for existing properties in the local area." - Andrew Boast, CEO.
This means new builds are not quite the same value for money as they may first seem; however, they are built to modern building regulations, which means they are more energy efficient than older homes. This is increasingly important with government plans to bring in a minimum EPC rating of C on all rental properties by 2030.
What is the safest town in Gloucestershire?
Charlton Kings, Churchdown and Stonehouse are the safest towns in Gloucestershire. Although Gloucester has the highest crime rate, the number of crimes has been falling in the city since it peaked in mid-2022.
Should I buy a house in Gloucestershire?
Gloucestershire is an excellent location to buy a home:
- Period and Regency properties.
- Well connected by the M5 a public transport networks.
- Higher than average property values, with below-average bargains still to be found.
- Excellent employment opportunities.
- Beautiful countryside with Forest of Dean ancient woodlands & Wye Valley protected National Landscape.
- Prestigious Schools.
- Range of local amenities & activities.
House prices are still rising, and the cost of borrowing is gently falling. If you can afford to buy before prices increase further, you'll likely be able to switch to a more affordable mortgage rate in 2027, by which point your investment should have appreciated in value, along with the equity you'll build each month by making your mortgage payments.
Across the Southwest, house prices are expected to increase 21.6% over the 5 years to 2029 (Savills).
If you are renting and can afford to buy at the current rate of interest, this may be a much more desirable option than saving for a bigger deposit, as rents are still rising, whereas mortgage rates are likely to fall.
However, if you are stretching your budget to buy in Gloucestershire, consider saving for a bit longer or opting for a more affordable county. If the base rate rises again, you may be unable to keep up with your monthly repayments when your fixed rate comes to an end.
Worse yet, if prices fall, you could end up in negative equity, owing more money than your home is worth. Buying a home with a mortgage always comes with risks. Your home may be repossessed if you do not keep up repayments on your mortgage.
If you are ready to buy a house in Gloucestershire or the surrounding area, we can handle your purchase with a dedicated SAM Conveyancing Consultant to manage your transaction alongside one of our hand-selected panel solicitors.
"Inflation hitting 3.0%, and possibly reaching 3.7% later in the year means the Bank of England might hold off on more rate cuts. This has a knock-on effect on mortgages and how confident buyers feel, as the anticipation of lower rates often drives increased interest and market optimism."
- Andrew Boast FMAAT MIC
CEO and Author | SAM Conveyancing
Sources: Latest data from - Gov.UK, Bank of England, UK House Price Index, Savills.
Caragh is an excellent writer and copy editor of books, news articles and editorials. She has written extensively for SAM for a variety of conveyancing, survey, property law and mortgage-related articles.
Andrew started his career in 2000 working within conveyancing solicitor firms and grew hands-on knowledge of a wide variety of conveyancing challenges and solutions. After helping in excess of 50,000 clients in his career, he uses all this experience within his article writing for SAM, mainstream media and his self published book How to Buy a House Without Killing Anyone.
Without Killing Anyone
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With more than two decades’ experience in the conveyancing sector and over 50,000 successful client moves under his belt, Andrew shares insider tips and advice to empower you as a buyer, giving you the tools to make the best decisions for your circumstances and ease the chaos.
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