Here is Property Options’ latest update on the Bristol Buy To Let (BTL) market – for November 2019.
This update is by economist Chris Worthington, who is a regular PIM speaker.
This month, we are looking at the popular millennials market.
In a recent report from regulated property buyer Good Move, Bristol has been named as one of the top ten locations for 18 to 34 year olds – the millennial age group. Exeter and Bath were also high in the league table.
The report is based on data for annual salaries, employment opportunities, arts and recreation facilities and broadband speed.
Bristol is gaining population from the millennial age group and Russ Counsell a director of Good Move commented “Young people bring money, innovation and life to a city and our research has highlighted the places benefiting from their interest.”
This is good news for buy to let landlords, but to cater for that age group they will need to provide high quality accommodation within reach of the city centre. The benefits of this strategy will be high quality tenants who are willing to pay a premium rent.
Kerry Flay, area supervisor at Andrews Property Group commented “Bristol’s wealth of career and educational opportunities are driving rents up as more people move to the city” adding that “Bristol is often seen as a more affordable alternative to living in London and coupled with this is the high demand to live in such a vibrant buzzing city.”
Some of the demand from relatively high earning millennials for rented property is being met by new “build to rent” developments in the city. These typically offer one and two bed fully fitted apartments with a range of on-site services including a gym, restaurants, meeting areas and bike storage.
Property development company Grainger, the UK leading provider of rental homes, is planning a 231 apartment scheme at Finzels Reach in partnership with Cubex Land.
With other developers also involved in build to rent, around 2000 apartments will be built in Bristol in next few years.
The growth of build to rent is clearly a significant development in the market, how should buy to let investors respond?
For small scale investors it will not be possible to compete head on with large scale developments funded by institutional investors. Some investors may decide not to compete in the sector and stay with traditional suburban family homes, HMOs and student lets.
However there is the option of investing in a modern apartment that would be attractive to millennials at a lower price on the edge of the city centre, in areas such as Bedminster, Totterdown and Old Market.
Our Next Property Meeting
We will all be discussing the latest position on the property market in Bristol and across the UK at our next PIM, on Thursday 28 November 2019 at Future Inn, Bristol, BS1 3EN.
We hope you will join us then.
For more info and to reserve your place Click Below