The Property Options’ Bristol Buy To Let Market Update
This update is by economist Chris Worthington, who was one of the speakers at our February PIM.
The Bristol Economy
Bristol’s economic success story continues. The key growth sectors – aerospace, IT, defence, professional services and the creative industries, all provide skilled, high wage jobs.
The city has two prestigious universities and a highly qualified workforce. Bristol has the highest level of people in employment (76%) of all the major cities and is 39th in the league table of 324 towns and cities for wealth creation and jobs. The main area of concern reported by local companies is skills shortages; a common finding for the UK economy in general.
Transport links are improving. The new Metro bus route is under construction and the electrification of the main line to London, due to be completed by 2020, will facilitate links with companies in London and along the M4 corridor.
The growth of the Bristol economy generates a high level of demand for owner occupied and rented property.
Forecast For The Bristol Property Market
The forecast annual house growth in house prices in Bristol is 4% up to 2021, while the average forecast increase for the UK is 2.5%.
The forecast for the annual average rent increases in Bristol is 3.8%, the average for the UK is an annual increase of 3.3%. Rental yields in Bristol are around 5%.
In total, buy to let investors can therefore expect an annual return on investment of around 9%.
Bristol is 25th in the league table of rental yields in 50 largest towns and cities in the UK. The towns and cities with the highest yields in the UK are mostly in areas where house prices are relatively low.
Bristol’s position at the mid point of the league table reflects the increase in both house prices and rents in Bristol in recent years.
New Developments in Bristol
As reported in our January update, developer confidence in Bristol has continued with new developments on the waterfront.
Away from the city centre, new housing is under construction at the Charlton Hayes development in Patchway and at the second phase of the Urban Splash Lakeshore Development in Hartcliffe. Smaller scale developments are underway in Fishponds and Kingswood.
New development is also getting underway in the Temple Quarter Enterprise Zone, with plans for new housing, the Bristol Arena and a new university campus.
The extensive private sector developments that are underway in Bristol will improve the housing supply and also provide opportunities for buy to let investors.
We will all be discussing the latest position on the property market in Bristol and across the UK at our next PIM, on 30 March 2017 at Holiday Inn, Bristol City Centre, 6-9 pm.
We hope you will join us then.
For more info and to reserve your place Click Below