Here is Property Options’ latest update on the Bristol Buy To Let (BTL) market – for March 2020.
This update is by economist Chris Worthington, a regular speaker at our PIMs.
Bristol economy
A recent report from accountants EY found that Bristol is set to continue as one of the fastest growing regional cities in the UK.
Bristol’s economy will grow an average of 2% per year compared with the UK average of 1.8%.
The fastest growing employment sectors will be professional, scientific and technical services and administrative services – all sectors that will provide well paid jobs and a strong demand for high quality accommodation in the private rented sector.
Social housing
The availability of social housing has been boosted by the formation of Goram Homes by Bristol City Council.
The company partners with the private sector to create spaces that people want to live in and meet Bristol’s development policy requirements, particularly around the provision of affordable housing, space standards and sustainability. The target is to build 2,500 homes by 2025.
One of the first developments will be at Romney House, formerly the location of Lockleaze school delivering over 250 new homes, of which 55% will be designated as affordable housing.
Another development will be at Baltic Wharf at the western end of floating harbour on the narrow strip of land neighbouring Bristol’s historic Underfall Yard. This will deliver over 150 new homes, of which 40% will be designated as affordable housing.
Bristol rental sector
On 27th February Chris Worthington gave a presentation at our monthly PIM. This highlighted the strength of the Bristol private rented sector, with year on year growth in house prices (3.6%) and rents (5%) that are above the UK average.
The rental yield (the annual rent divided by the value of the property) in Bristol is around 4%, adding this to the 3.6% growth in house gives a total yield for buy to let investors of 7.6%.
A range of new developments in Bristol, both new build and the conversion of old buildings will provide new opportunities for investors.
The development of social housing by Goram Homes is welcome news for residents of Bristol on a lower income, who may not be able to afford a mortgage or a full market rent.
At the top end of the private rented sector estate agents JLL have forecast that around 2000 new “build to rent” apartments will be built in Bristol in the next 3 years, funded by large institutional investors.
In the words of Rupert Murdoch at the launch of Sky TV “there’s plenty out there for everyone.”
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 26 March 2020 at Future Inn, Bristol, BS1 3EN.
We hope you will join us then.
For more info and to reserve your place Click Below
Property Options Bristol
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