The Cotswolds has emerged as one of the UK’s strongest performing rental markets, significantly outpacing the broader South of England, according to new data released by The Cotswold Letting Agency.
The agency reports that the average monthly rent across the region now stands at £2,118 — a figure well above the South West average of £1,400 and the South East’s £1,770. Only London commands higher average rents, at approximately £2,620 per month.
“We’ve seen the Cotswolds consistently outperform national rentals, and this ‘bucking of the trend’ continued throughout 2024 and into 2025,” said Fergus Mitchell, director of The Cotswold Letting Agency.
Rental prices across the Cotswolds rose by nearly 22% in 2024 alone, underscoring the region’s growing popularity among tenants seeking countryside living with strong connectivity and lifestyle appeal.
Despite the sharp rise in prices, market activity has remained relatively buoyant. Available listings across the region were up by 16.8% year-on-year — above the national average increase of 13%. New rental listings also climbed by 28.1%, outstripping the 22.5% growth seen across the South of England.
However, the agency did note a slight dip in agreed lets, which were down by almost 4% compared to the previous year — a sign that rising rents and shifting tenant budgets may be influencing decision-making.
The data highlights the importance of strategic pricing in the current market. The agency warns that even short void periods can be costly, with a one-month vacancy equating to an 8% loss in annual rental income.
Mitchell added that landlords need to be “particularly mindful of localised trends and realistic pricing” if they are to maintain yields and minimise risk in what remains a highly competitive regional market.
With strong demand, limited supply, and continued rental growth, the Cotswolds is proving to be an increasingly attractive destination for buy-to-let investors — especially those looking for opportunities outside the overheated London market.
