The Bristol property market will outperform London’s market this 2019 according to the research conducted by JLL Research. The JLL Find the Gap report found Bristol house prices will increase by at least 1.5% – 1% higher than London’s 0.5% projected increase. The same report also noted that property values in Bristol would see a 2.8% appreciation this year, higher than the predicted 2.2% increase UK wide.
Strong Demand Fuelling House Price Appreciation
In Bristol, experts see strong demand for city-centre homes, mainly apartments comprising one or two bedrooms. Bristol is attracting droves of people because of its city-centre lifestyle. The demand rapidly outpaces supply, and this ultimately leads to an increase in house prices and rental values.
Whilst there are several residential developments in the area, including build-to-rent schemes, it is yet to fill in the gap in the demand.
Bristol Rental Market is Among the Strongest in the UK
One of the strengths of the Bristol property market is its rental sector. The city has a scarcity of rental property and with a rising student population. To date, as much as one-third of the rental population are mostly students. As a result, rental rates are going up. This low inventory of rental properties is causing Bristol average rent to increase by 4.1% last year. Forecasts show that a 3.1% increase annually for the next five years is possible.
An average property rent in Bristol costs £1,189 per calendar month, and most of the rental properties are two-bedroom apartments with a median rent of £1,173. Despite planned developments of close to 2,100 rental units, the demand will continue to outpace the supply for the years to come.
Bristol’s office market has a limited supply as well. In total, the city centre only had 532,000 square feet of office space in 2018. According to Savills Research, the city centre only has a 3.6% vacancy rate. The research also noted that the serviced office sector would proceed on taking space for the rest of the year, with desk prices appreciating as a result of continued rental growth.
House Price in the South West Higher than Across the UK
South West house prices increase significantly to as much as 46% since the global financial crisis hit the region. This increase is higher compared with the 43% increase across the UK. Bristol posts an economic growth of 2.5% annually as employment growth remains stable between2018 and 2022.
Bristol Property Market with Strong ROI
According to Zoopla, Bristol’s best performing postcode is BS5, consisting of Lawrence Hill, Easton, and St George. These areas have house prices increasing by 2.72% in the past year. The average house price in the area is £239,663. St George is seeing a rise in the number of young families joining the housing industry.
Houses in the BS15 including Hanham, Woodstock, and Kings Chase are posting a 2.5% increase in prices as well. The same is true for properties in BS10 such as Henbury, Southmead, and Brentry.
An increase in house prices is also evident in the upscale area of Clifton, where house prices increased by 2.35%.