Our regular Bristol and UK property reports are written by economist Chris Worthington, who is a regular speaker at our PIMs.
A recent report from real estate and investment company CBRE identified twenty cities across the UK, including Bristol, with the highest future demand for housing in the private rented sector (PRS), using the metrics of population in the age range 25 to 34, high numbers of students and the relative size of the economy.
A separate report from CBRE entitled ”Creative Regions” found that Bristol’s millennial population (people reaching young adulthood in the early 21st century) grew by over 10% in the last five years and 80 people are moving from London to Bristol every week.
Bristol was placed sixth in a recent ranking by CBRE of Europe’s top tech “super clusters” beating Cambridge, Vienna and Cologne. The growth of business incubators, co – working spaces and start – ups is set to continue, driving the demand for housing in the PRS.
The strong demand for housing in the PRS in Bristol is reflected the latest UK Rental market published by Zoopla.
Bristol is one of six towns in the 64 towns and cities in the index to show year on year rental growth over 4%. The other towns with high rental growth are all in in the North of England or the Midlands indicating that Bristol performs well compared with towns and cities in the South of England. The average rent in Bristol is £996 p.c.m, – the highest among the major cities in the index. The average time to rent is only 16 days, the lowest time to rent in the index and also indicative of the high level of demand in the PRS.
There is more good news for Bristol BTL investors in the House Price Index published by Zoopla, in association with property analyst company Hometrack, Bristol is placed 8th in the league table of the 20 cities in the index, with year on year house price growth of 2.9%, higher than the average in the UK of 2.5%. Bristol is the only city in the South of England in the top ten cities in the index.
These are impressive findings for investors in our city pointing the way to Bristol’s economy and housing market having the strength to ride out the recession in better shape that other towns and cities in the UK. But more importantly, the reports from CBRE focus on future demand in the PRS in Bristol, showing that Bristol’s success story in the private rented sector is set to continue at least the medium term.
Our Next Property Meeting
We will all be discussing the latest position on the property market in Bristol and across the UK in the light of Covid-19 at our next PIM.
We’ll be arranging this when safe and practical to do so.
Meanwhile, stay safe.