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.
Developer confidence in Bristol remains at a high level in the residential sector. New apartments are currently on the market at the Huller and Cheese and Finzels Reach developments on the waterfront and at Redcliffe Place on Redcliffe Parade.
Away from the City Centre, apartments are being marketed at The Paintworks and Lakeshore. Looking to the future, new residential developments are planned at Brandon Yard opposite the SS Great Britain, Redcliffe Wharf and the Elizabeth Shaw Chocolate Factory in Easton.
Property Investment and GVA
Investment in property in Bristol mirrors the dynamic local economy.
Research published by accountancy firm EY, found that Bristol will be one of the UK’s fastest growing cities over the next three years – as measured by GVA (Gross Value Added, the total of all the revenue generated in the local economy).
The annual increase GVA in Bristol is forecast to be 2.3% per annum from 2017 – 2020. This is third in the GVA league table for high growth locations, Reading and Manchester are joint first in the table with GVA growth of 2.4% per annum.
The UK average is forecast to be 1.8%. The EY report attributes growth in GVA to the expansion of high growth economic sectors, such as information and communications technologies and professional services.
The strength of the local economy also supports the year on year increase in house prices.
The latest UK Cities House Price Index places Bristol 8th in the league table of the twenty major cities in the UK with a year on year increase of 6.1%.
Glasgow is top of league table with a year on year increase of 7.9% while the average for the UK is 4.7%. London is 16th in the league table with a year on year increase of 2.7%.
For Bristol based buy to let investors this is all good news – but how should they respond in terms of their investment strategy?
The strong economy and well paid jobs in Bristol will generate a demand for high quality rented accommodation.
Investors with deep pockets should consider investing in the new developments in the city, with the expectation of low maintenance costs and an increase in the value of property in the medium term.
We will continue to highlight these opportunities in future editions of the Bristol Buy To Let Update.
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 25 January 2018 at Future Inn, Bristol, BS1 3EN.
We hope you will join us then.
For more info and to reserve your place Click Below