Bath has long been known for its elegant Georgian terraces, historic landmarks and strong tourism appeal. But in 2026, a different side of the city is taking shape – one that’s attracting the attention of investors, developers and professionals in equal measure.
The Bath Central Riverside masterplan is entering its next phase, with funding actively being sought to deliver a bold new Innovation District. With over 700 new high-skilled jobs expected in the coming years, the ripple effect on Bath’s rental and resale market is already in motion.
At Martin & Co Bath, we’re seeing a clear shift in where tenants want to live, and where savvy investors are looking to buy. Here’s why 2026 is the moment to look beyond Bath’s heritage and towards its innovative future.
Bath Central Riverside: A blueprint for modern growth
The Bath Central Riverside masterplan has been years in the making. It’s a large-scale regeneration programme covering key sites between Green Park and the River Avon, just south of the city centre.
This new Innovation District will deliver flexible workspaces, labs, offices, and co-working zones to support growth in sectors like:
- Creative industries
- Life sciences
- Clean technology
- Digital and software services
The plan includes enhanced transport links, pedestrian and cycle routes, and sustainable urban design. And most importantly, it’s backed by active business demand and a growing pool of talent.
The first phase already brought businesses like SETsquared and the University of Bath innovation labs into the city centre. Now, 2026 sees the area preparing for an influx of over 700 new jobs, many of them high-paid, office-based and hybrid-friendly.
What does this mean for property investors?
As professional employment expands, so does demand for high-quality rental homes. These incoming workers aren’t just looking for a postcode – they want comfort, efficiency, walkability and strong connectivity.
Unlike tourists or students, this group is likely to:
- Rent longer term
- Expect modern furnishings and energy performance
- Seek proximity to workspaces, transport and lifestyle hubs
- Prioritise quality of management and responsive landlords
This is where investors can step in. Properties in or near the innovation zone – particularly in BA1 and BA2 – are primed for strong yields, low voids and long-term capital growth.
Rental performance in Bath: Signs of early movement
Recent market figures from Rightmove and Zoopla show that Bath’s rental market is tightening. Between Q1 2025 and Q1 2026:
- Rents in BA1 rose by 8.2% year-on-year
- Average monthly rent across central Bath is now £1,410
- Rental supply is still around 15% below pre-2020 levels
Much of this demand is shifting from traditional student zones to professional-friendly corridors closer to the city centre, Green Park, and the Lower Bristol Road area.
Twerton and Oldfield Park: The smart investor’s picks
Twerton has historically been seen as a more affordable, student-heavy area. But that’s changing.
- Entry-level prices in Twerton start around £220,000 for a 2-bed terrace
- Yields are averaging 5.4%, compared to 4% in BA1 core areas
- Proximity to Lower Bristol Road and the new business sites is attracting interest from junior professionals and couples priced out of the centre
Meanwhile, Oldfield Park remains a high-demand area. While often associated with student lets, its large Victorian homes, garden space and excellent rail access are drawing a new tenant profile.
Smart investors are reconfiguring HMOs into professional lets, increasing rental income while lowering management costs and void risk.
What tenants want in Bath in 2026
To maximise performance in today’s market, landlords need to align with tenant priorities. Based on search data and lettings activity at Martin & Co Bath, the most in-demand features in 2026 include:
- Energy-efficient homes with EPC ratings of C or above
- Fully furnished lets with tasteful, neutral interiors
- Space for remote working, such as a second bedroom or home office nook
- Secure bike storage and access to cycle routes
- Proximity to Bath Spa station, city centre and Green Park
Homes that tick these boxes are letting quickly – often within a week of listing.
Positioning your property for the innovation boom
If you already own a rental property in Bath, 2026 is the time to optimise for this new tenant profile. Some key steps include:
- Upgrading insulation, heating and glazing to meet EPC C or above
- Modernising kitchens, bathrooms and furnishings for professional appeal
- Switching to full management to meet compliance and service expectations
- Pricing competitively based on localised market insights
Martin & Co’s property management team specialises in professional lets in Bath, offering tailored advice on how to stand out in this growing market segment.
Considering a sale? Timing matters
We’re also seeing interest from investors looking to buy high-performing stock off-market, especially in BA2 zones close to the regeneration area. If you’re thinking about selling your investment property, the early part of 2026 could deliver:
- Higher-than-expected valuations due to upcoming demand
- Faster sales due to investor urgency
- Potential for sale-and-letback to retain income
Ask our sales team for an investor valuation – we can advise whether now is the right time to release equity or reposition your portfolio.
Bath Central Riverside and beyond: What comes next?
The Innovation District isn’t a standalone project. It’s part of Bath’s wider shift towards a future-facing, sustainable economy. Additional developments include:
- Expansion of the University of Bath innovation campus
- Upgrades to Bath Spa station and connecting cycleways
- Public realm improvements linking Twerton, Oldfield Park and city centre
All of this contributes to a long-term uplift in value, tenant quality and resilience – even during periods of wider market adjustment.
Why choose Martin & Co Bath to guide your investment
As a trusted estate and letting agent in Bath, we offer more than listings. We provide:
- Expert valuations based on local rental and capital growth trends
- Insight into what’s letting well and why
- Fully managed landlord services with compliance and repairs handled
- Connections to motivated buyers, landlords and professional tenants
Whether you’re buying to let, remodelling an existing property, or reviewing your 2026 portfolio, we can support you every step of the way.
Book a free rental or sales valuation with Martin & Co Bath.
Conclusion: Bath’s future is innovation – and the smart money is already moving
The Bath Central Riverside masterplan is more than a planning document. It’s a roadmap for where demand, jobs and long-term value are heading.
For landlords and investors, 2026 offers a strategic moment to get ahead. The combination of high-skilled job growth, rental undersupply and professional tenant demand makes Bath’s innovation zone one of the South West’s most compelling opportunities.
If you’re ready to explore your next move in the property investment Bath 2026 market, speak to the team at Martin & Co Bath. We’ll help you make data-led decisions that support your goals – with service that matches the professionalism of your tenants.
