Here is the latest edition of the Property Options’ monthly update on the Bristol Buy To Let (BTL) market.
This update is by economist Chris Worthington, who is a regular speaker at our PIMs.
Bank of England Director Visits Bristol
Last month Alex Brazier, the Bank of England Financial Stability Strategy and Risk Executive Director made a welcome visit to Bristol, hosted by investment group Hargreaves Lansdown.
He made some very blunt comments about the conduct of the banking sector that led to the 2007- 2008 financial crisis, but is confident that the financial system is now “three or four times stronger than it was ten years ago.”
His job is to make sure that the banks are capitalised sufficiently to absorb any shocks and to make sure that that do so by a wide margin. This is done by applying stress to banks and other financial institutions.
He admitted that the stress tests had not been popular with some senior figures and were deemed to be “unsporting” by one chief executive. Mr Brazier considers this view to be a confirmation that the stress tests are getting it about right.
Buy to let (BTL) investors who are reluctantly coming to terms with the new guidelines for higher rental cover and higher deposits for BTL mortgages should reflect on how difficult it was to get a BTL mortgage in the wake of the financial crash!
House Prices in Bristol
In the latest City Level Summary of House Prices in the top 20 cities in the UK published by property analyst Hometrack Bristol is in 13th place, with year on year growth in house prices of 3.7%. This is higher than the average increase for London (2.8%).
The average house price in Bristol is now £268,400, the average for the 20 cities in the index is £252,700.
House prices in Bristol increased by 1.2% in the last quarter.
Temple Quarter Enterprise Zone
There is more good news on improvements to the infrastructure in Temple Quarter Enterprise Zone at Temple Gate and Temple Meads Station.
The Temple Gate scheme will include:
- Removing the Temple Circus roundabout and replacing it with a simplified, signal controlled junction
- New high quality, segregated pedestrian and cycle routes
- Better public transport facilities, new bus stops and shelters and a MetroBus stop
At Temple Meads Station, work to extend extensions to platforms 13 and 15 has been completed, making way for the arrival of new, longer intercity express trains this autumn.
These are part of the overall plan for the Enterprise Zone, an increasingly important area for BTL investors to consider for inclusion in their portfolio.
Conclusion
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 September 2017 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
Property Options Bristol
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