In a city where every street seems to tell a story, Bath’s property market has entered a new chapter. Known for its golden Georgian terraces, healing waters, and world-renowned cultural scene, Bath has long been a jewel in the South West’s tourism crown. But in 2025, it’s not just heritage buffs or spa-goers keeping the city busy — it’s hosts, investors, and property owners discovering that short-term rentals in Bath have never been more lucrative.

Since the pandemic, the UK has witnessed a permanent shift in how people travel, work, and stay. Domestic tourism remains robust, hybrid working allows professionals to explore extended getaways, and international visitors have returned in full force. Bath, with its unique mix of heritage tourism, educational institutions, and business travel, has emerged as one of the most resilient and profitable short-let markets outside London.

In this blog, we’ll explore why Bath’s short-term rental market is soaring in 2025 — breaking down the forces that shape local demand: tourism, student and academic occupancy, and the city’s enduring architectural charm. We’ll also look at how property owners can navigate this thriving yet competitive market, and why Pass the Keys Bath remains the go-to management partner for hosts who want to maximise income while maintaining peace of mind.

1. Bath’s Tourism Engine: A Year-Round Source of Demand

Tourism has always been the heartbeat of Bath’s economy, but the rhythm in 2025 is faster than ever. According to data from Visit Somerset, Bath now attracts over 6 million visitors annually, with both domestic and international tourists contributing to one of the highest per-capita tourism revenues in the UK.

Where the Growth Is Coming From

Bath’s visitor appeal rests on several enduring pillars:

• World Heritage status: The city’s historic significance as a UNESCO World Heritage Site continues to attract global travellers seeking culture and architecture.

• Health and wellness tourism: Bath’s Roman and Georgian spa heritage has evolved into a modern wellness destination. The Thermae Bath Spa, boutique wellness hotels, and yoga retreats are key booking drivers year-round.

• Festivals and cultural events: From The Bath Festival and Jane Austen Festival to Bath Comedy Festival and Bath Christmas Market, the city’s event calendar ensures there’s rarely a quiet weekend.

These attractions have created sustained occupancy across the seasons. During event weekends, Airbnb prices in Bath can rise by up to 45%, with many listings booked months in advance.

A Consistent Demand Curve

While many UK destinations experience sharp seasonal drops, Bath’s diversified appeal mitigates those lulls. Weekends, in particular, remain strong thanks to domestic city-breakers from London, Bristol, and the Midlands.

With average occupancy sitting at 78–82% and nightly rates climbing by 12% year-on-year, Bath’s short-term rental sector continues to outperform most UK regional cities.

2. The Student and Academic Market: The Quiet Powerhouse Behind Mid-Term Demand

Bath is not only a historic tourist hotspot but also an academic hub. The presence of the University of Bath and Bath Spa University adds a stable, consistent layer of rental demand that often goes unnoticed in broader market analyses.

Academic Visitors and Extended Stays

Bath’s universities attract thousands of international students, visiting professors, and research fellows each year. Many of these professionals — as well as parents visiting students — seek flexible, furnished short-term accommodation rather than committing to long-term contracts or staying in hotels.

This group tends to:

• Stay for 2–12 weeks, bridging academic terms or research periods.

• Prioritise quality and location near university campuses or the city centre.

• Book properties well in advance, ensuring off-season occupancy for hosts.

Corporate and Educational Conferences

Beyond individual visitors, Bath’s universities and civic institutions host regular conferences and short courses. The annual Bath Digital Festival, Architecture Week, and numerous postgraduate symposiums draw hundreds of delegates seeking short-term accommodation.

For hosts, this creates a unique mid-term market — distinct from tourists yet equally profitable — especially in shoulder months like February, March, and October.

3. Heritage Meets Hospitality: Why Bath’s Architecture Drives Premium Bookings

There are few cities in Europe where architecture plays such a direct role in tourism as Bath. Its uniform Georgian streetscapes, elegant crescents, and iconic honey-coloured limestone façades make it a living museum — and a magnet for design-conscious travellers.

A City That Photographs Itself

In the social media era, Bath’s architectural charm doubles as free marketing.
Short-let guests often share their stays on Instagram and TikTok, turning Bath’s terraces and courtyards into visual postcards. A well-presented heritage property can attract 20–30% more engagement on Airbnb, leading to higher click-through rates and booking conversions.

What Modern Guests Want

Travellers no longer just want a bed; they want an experience. Heritage homes with:

• High ceilings, fireplaces, and sash windows.

• Thoughtful modern touches — rain showers, smart TVs, and underfloor heating.

• High-quality linens and curated interiors — are outperforming standard rentals.

Listings that successfully blend Bath’s classical aesthetic with contemporary comfort consistently command nightly rates exceeding £250–£300 in central areas.

Neighbourhoods in Demand

• City Centre: Ideal for couples and tourists seeking proximity to the Roman Baths and Abbey.

• Royal Crescent & Circus: High-end heritage properties ideal for premium short lets.

• Widcombe and Bear Flat: Popular with families and academic visitors.

• Larkhall: A rising favourite for longer stays with a local village feel.

4. Regulation, Sustainability, and Market Stability

While some UK cities — notably London and Edinburgh — have introduced tighter restrictions on short-term rentals, Bath has opted for a measured approach.

Responsible Hosting in Bath

Bath & North East Somerset Council encourages compliance and sustainability, focusing on:

• Proper waste management and recycling.

• Respect for residential communities.

• Ensuring safety standards and planning permissions are in order.

This pragmatic framework has helped stabilise Bath’s market, ensuring legitimate hosts can continue to operate successfully without excessive bureaucracy.

Sustainability as a Selling Point

Many travellers in 2025 prioritise eco-friendly accommodation. Hosts incorporating solar panels, energy-efficient lighting, and eco-conscious toiletries are gaining a competitive edge — not only aligning with Bath’s sustainability goals but also appealing to environmentally aware guests.

5. Economic Outlook: Bath’s Market in 2025 and Beyond

The short-term rental outlook for Bath remains bullish. With its balanced blend of leisure, academic, and business tourism, the city is less vulnerable to seasonal dips than traditional seaside destinations.

Key performance indicators show strong momentum:

• Average Daily Rate (ADR): £185 in early 2025, up 12% from the previous year.

• Average Length of Stay: Increasing from 2.8 to 3.5 nights.

• Booking Lead Time: Up from 19 to 24 days — a sign of strong demand and advance planning.

Industry experts anticipate continued growth into 2026, bolstered by major upcoming events and investments in the West of England Combined Authority’s tourism infrastructure.

For hosts, this presents a dual opportunity: consistent revenue and long-term capital appreciation, as Bath’s property values remain among the most stable in the UK.

Conclusion: Turning Bath’s Booming Market into a Sustainable Success Story

Bath’s short-term rental renaissance isn’t a passing trend — it’s the result of enduring demand, intelligent regulation, and a city that continues to charm visitors and residents alike. For property owners, the opportunity lies in harnessing that demand efficiently, ethically, and profitably.

Whether you own a Georgian townhouse overlooking the Circus, a modern apartment near the train station, or a family home in the suburbs, short-letting in Bath offers a rare chance to earn strong yields while sharing in the city’s heritage.

However, managing a short-term let successfully requires time, experience, and local expertise — from dynamic pricing and guest screening to cleaning logistics and legal compliance. That’s where Pass the Keys Bath comes in.

As one of the UK’s leading short-let management companies, Pass the Keys offers full-service property management for hosts who want effortless income. The local Bath team handles everything:

• Professional photography and listing optimisation.

• 24/7 guest communication.

• Cleaning, maintenance, and linen services.

• Data-driven pricing to maximise occupancy and profit.

With Pass the Keys Bath, property owners can enjoy the financial rewards of short-term letting — without the stress of day-to-day operations.