Is Bristol the new hotspot for buy-to-let investment?
The largest city in the South West and one of the most popular, Bristol’s average asking prices have increased 60% over the past decade. A creative city with media, electronics, and aerospace industries and not to mention, it’s very own community currency: the Bristol pound. Famous for its harbourside, suspension bridge, and Wapping Wharf (the home of our Bristol office!), the city has always been renowned for its independent shops and student culture but has been on a steady trajectory of improved infrastructure and job prospects.
Property prices in the South West rose by £23,000 in 2021, an incredible £7,000 higher than the national average rise of £16,000, thanks to a wave in demand due to lifestyle changes that resulted from the pandemic. Research found Bristol saw the largest increase in quarterly demand at 15.5%, creating a scarcity of rental accommodation as demand outstrip supply. The rental market in Q3 of last year saw the largest quarterly uplift with demand rising 21.9% and with it, rent prices which are on average £983 making the city one of the most expensive places to rent a property after prices rose twice as fast the England average.
So, why invest in the city?
Bristol is undoubtedly a thriving professional services sector and a global leader in engineering and technology, with a number of firms choosing the city as their locations headquarters and additional offices. Alongside this, the infrastructure is rapidly developing thanks to investment from the city to support these industries. Not to mention, there is approximately £1 billion earmarked for major projects in the councils five-year plan.
The Temple Quarter, one of the city’s key focuses for regeneration and residential homes with Temple Meads Station at the heart providing close links to the capital and other major cities.
With great transport links and top universities, Bristol has repeatedly been voted one of the coolest cities in the world as well as one of the best places to live in the UK. Which is no wonder from its vibrant and diverse community that elevates the cities lifestyle and social scene.
What are the figures?
To understand the market further, we utilise a tracker, that analyses and assesses five key indicators that impact buy-to-let desirability including:
- Average total rent
- The best short-term returns through yield
- The lowest number of vacancies as a proportion of total housing stock
- Long-term return through house price growth over the past decade
- The percentage of the city population in the rental market
This tracker and analysis has named Bristol as one of the best cities for landlords to invest in for 2022. Aldermore’s Buy to Let City Tracker listed Bristol as having a +6% change 2021. The average yields across the city vary, with factors such as higher student dwellings creating an increase.
Where should you start?
Selecting your next investment opportunity, whether starting in a new city or one you hold current portfolio, is made immensely easier when you have a commercially minded, experienced team behind you.
At NEXA, we have a uniquely skilled team that can provide in-depth analysis on all property investment opportunities, and then be on hand to offer comprehensive, hassle-free buying service where we provide value, not just in opportunity finding and deal negotiating, but also in our ability to untangle all the complexities of the mortgage and conveyancing process. Following on from this, we’re on hand to manage your investment and provide a solution-driven approach for any home improvement requirements.
If you’d like to find out more about how we can support you, contact our team today.