The Bristol Buy To Let Market Update from Property Options – December 2016
In November Chris Worthington gave a presentation on the economics of the buy to let market at our Property Investment Meeting (PIM). In this update we decided to briefly revisit the presentation.
The prospect of Brexit is dominating the economic agenda but the Bristol housing market continues to perform well.
Bristol is first in the Hometrack league table of towns and cities for annual house price growth at 12.3% in 2016. In second and third place were London (10%) and Southampton (8.5%). However in common with the rest of the UK house price growth in Bristol is slowing, the growth in house prices in Bristol in the last quarter was 1.1%.
Bristol is also performing reasonably well in terms of rental yields with an average of annual rental yield of 5%, placing Bristol 25th in the league table of rental yields of 50 towns and cities in the UK published by HSBC. Looking to the future a recent report from Savills predicts that rents will increase in Bristol by 27% in the next five years, higher than the forecast of 19% for the UK as a whole.
In his presentation Chris also considered where to invest in Bristol. In previous updates we have referred to new residential developments in the city centre such as Finzels Reach and Number One Bristol. However investors should also be looking at areas close to the city centre such as Easton, Bedminster, Montpelier and Totterdown with cheaper property available in Stokes Croft and St George.
In the longer term more new development in the city centre residential development is planned at the Redcliffe Quarter, situated between St Thomas Street and Redcliife Street, an area of the city that has been under used and semi derelict for twenty years. The mixed use development will include a 22 storey landmark tower faced with Bristol blue glass. This marks a change in planning policy, supported by the new Bristol Mayor Marvin Rees, to permit taller buildings in parts of the city.
The overall picture for buy to let investment in Bristol is therefore looking very good for the future and given the buoyant state of the Bristol economy, it is no surprise that property developers are investing in the city on a large scale.
This month there is only one negative news item to report – a cutback in investment on the planned electrification of the main line from Bristol to London, by calling a halt the electrification of the lines between Bristol Temple Meads, Parkway and Bath.
However in our view the shorter journey time on the main line to London will still benefit the city and specifically, it will enhance the property market in the Temple Meads area.
We will all be discussing the latest position on the property market in Bristol and across the UK at our next PIM which will be in the new year, on 26 January 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