The Bristol Buy To Let Market Update from Property Options – October 2016
We were recently asked by an active buy to let investor for our opinion on areas of Bristol that are attractive for new investment. There is certainly plenty to choose from and developers are taking forward several major projects in the city, reflecting a high level of confidence in the local economy and the Bristol housing market.
- Portland Square in St Pauls is a hive of activity, with two attractive period buildings currently being converted to flats and with the expectation that more will follow.
- In the City Centre, the Finzels Reach development is making rapid progress with apartments already available and on nearby Victoria Street the Milliners development is also well underway.
- In South Bristol there are new developments in Bedminster and in Hartcliffe there are plans for new apartments at the Urban Splash Lakeshore Development.
Many buy to let investors will be attracted by the idea of investing in newly built property, not least because of the prospect of low maintenance costs. However the flip side of that are the monthly charges for management and the annual charge for ground rent. On the plus side there is the expectation that a new flat will attract good tenants and achieve a higher rent than an older property.
For investors interested in buying property in or close to the city centre, rental yields are higher in the BS2 postcode area compared to the BS1 postcode area. The average rental yield on a two bed property in BS2 is around 5.7% compared with with around 5.2% in BS1. The corresponding figures for a three bed property are 4.3% and 3.3%
Overall the Bristol housing market continues to perform well. According to the August edition of the UK Cities House Price Index published by Hometrack Bristol continues to register the fastest rate of annual growth of any major city in the UK at 13.1%. This is followed by London at 10.4 %.
The % change in house prices in Bristol in the last quarter was 1.7% and the average house price in Bristol is currently around £256, 000.
We will all be discussing the latest position on the property market in Bristol and across the UK at our next PIM on 24 November 2016 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