Letting Agents update on The Bristol Buy To Let Market
In January the property supplement of The Times newspaper hailed Bristol as the “City of the Moment”, great news for buy to let investors and more widely for residents of Bristol and local businesses. As in all the major cities the housing market is segmented according to the quality of the housing stock and local amenities including transport with other less tangible factors often designated as “lifestyle” also coming into play. For many years Bristol has been successful in promoting itself as a major centre for the arts and creative industries. More recently the Environment City initiative has been a major boost for the city’s green image and the food and drink offer in the city continues to grow and prosper.
In this context where are the new opportunities for buy to let investors? Stokes Croft is an emerging cultural quarter in the city with two bedroom properties available for around £200,000. However the choice of properties is limited and buy to let investors might decide to take a look at properties in a slightly higher price range in Easton or Bedminster. These two areas are both on the way up with a vibrant local arts scenes and property is still available at fairly low prices. Investors in Easton will interested to know that Easton was amongst the top 30 areas outside of London for an increase in house prices in the last 20 years with an average increase of 510%.
This is obviously based on long term historical data and it may not be reasonable to expect such large increases in future however the future does look bright for the Bristol property market. The UK cities house price index published by property market analyst Hometrack places Bristol third in the a league table of the annual increase in house prices at 12.8% in 2015, ahead of Oxford and not far below Cambridge and London in first and second place. Bristol also had the highest quarterly increase in house prices at 4.4% in the last quarter of 2015. Local estate agents expect this trend to continue in 2016 with annual price rises of around 10%.
The December edition of the Rental Trends tracker published by Rightmove found that the most popular rental searches outside of London were in in Bristol, Birmingham and Manchester. All three cities recorded strong annual rent rises in 2015 however Bristol was in the lead at 9.2%. One of the key drivers for this is an increasing demand for rented property from professionals in finance, IT, accountancy and law. In a recent report international property company JLL have expanded on this theme. In their view a combination of strong economic conditions, improvements to the city’s infrastructure and good performance across all sectors of the property market means that all the conditions are place for Bristol to make great strides in its redevelopment this year.
So what is best strategy for new buy to let investment in our wonderfully diverse city? A lower priced property in one of the up and coming areas like Easton or Bedminster or a studio apartment in the city centre. You decide, but a balanced portfolio is generally a good idea!
If you are looking to invest in the Bristol property market, then do give Lets Rent Bristol a call to speak to one of our Housing Experts who will be more than happy to assist you. Bristol's Top Rated Letting Agency on 0117 9664376