We were very pleased to have Chris Worthington as a speaker at our April PIM.
Chris Worthington is an economist with 20 years of experience in local economic development at Swindon Borough Council, North Somerset Council and here in his home city of Bristol.
His interest in economic development started when he worked with Voluntary Service Overseas in Jamaica, in between playing village cricket and touring the island on a motorbike. On returning to the UK he worked in two small businesses in Brixton, London.
He currently writes property market newsletters for us here at Property Options, as well as for local agents Lets Rent and articles on the economics of the buy to let market for Your Property Network, the well known monthly magazine for landlords and buy to let investors.
Chris is a buy to let investor himself and in his spare time he writes film reviews for a local paper and short plays.
Buy To Let Market Update – Economic Trends
Chris presented an overview of the key economic trends that affect the buy to let market such as interest rates, rents, house prices and rates of return on capital.He highlighted the conflicting information which appears in the press and online and stressed the importance of using reliable and quality sources as indicators.
Some of the key points he highlighted were:
- Only 140k houses pa have been built over the last 5 years – demand is approx 200k
- Social housing was 47% of the market in the 70s and is now just 20%
- In 2001 2.3m households rented – in 2014 this was 5.4m and the forecast for 2025 is 7.2m
- 50% of 20-39 year olds now rent
- Average house prices across the UK are £291k, but this conceals huge variations
- In the South West, the most expensive area is Bath and NE Somerset at £371k and Plymouth is cheapest at £181k
- Bristol’s average house price is £281k
- Average price increases for the UK over the last year are 6-7% and also vary
- The South West is at 5.7%, London and South East 8.1% – with the North East just 2.9%
- Over the next 5 years the forecast is 4.2% pa across the UK
- Average UK rents are £791 pm, with increases of 3% last year, in the South West this was 1.2%
- For ROI, Southampton is highest at 7.8%, Bristol is 4.9% and Kensington & Chelsea lowest at 3.3%
- Average returns on rental property last year were 12% / £22k, before deductions
Key factors driving rental property demand in Bristol include
- Highly paid key sectors, including aerospace, IT, banking, professional services and creatives
- The highest employment of all major UK cities – 72%
- High profile universities with a buoyant student population
- Good infrastructure, with electrification of the train line also due in 2020
- Strong environment profile
Chris also revealed his favourite investment hotspots in Bristol, which was very interesting.
If you missed his talk, then you missed an excellent opportunity to learn more about key economic trends and a fascinating evening. So do make sure you join us on 26 May 2016 at Holiday Inn, Bristol City Centre, 6-9 pm
For more info and to reserve your place CLICK BELOW!
We look forward to seeing you there.
The team at Property Options