Property Investment in Bristol

Bristol is a modern, forward-thinking city in the southwest of England, albeit with a long history of maritime trade that has propelled it into being one of the UK’s most prosperous areas.

The city’s plans to evolve and progress in the coming years, with its commitment to sustainability at the forefront of those plans, make it an interesting location for property investors wishing to diversify their portfolio. So, let’s take a deeper look and see why this famous port-city is becoming a sought-after property hotspot.

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Overview

In recent years, many property investors have turned their attention northwards. With London becoming increasingly expensive, and with a solid return on investment difficult to find, it’s no wonder why the northwest, with lower house prices and high yields, has become so popular.

Meanwhile, Bristol has been quietly simmering away in the background – perhaps overlooked due to its closer proximity to the capital. But whilst the average property price is higher than most cities in the north, there’s still an awful lot of upside potential for investors with the budget available.

First of all, it is, undoubtedly, a great place to live. It’s a talent hub for the southwest of the country, with over 465,000 residents, 46,000 businesses, two world-class universities, and a mantelpiece full of awards – winning best British city in which to live in 2014 and 2017.

But moreover, its economy is flying. Quite literally, too – the aerospace industry is a major player in the region, with the likes of Airbus, BAE, Rolls-Royce and GKN all based close by. Naturally, the port is a major source of trade and income with plenty of big-name manufacturing and engineering companies calling Bristol home. Plus, the city has one of the highest concentrations of tech and finance jobs outside of London.

Altogether, this paints the picture of a progressive city with a solid set of fundamentals to drive continuous improvement in the property market – both in terms of capital appreciation and rental prices.

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    Why is Bristol a good choice for property investors?

    The average property price in Bristol is £356,165, at the time of writing (July 2022, Rightmove).

    This puts the city well and above some of the more entry-level prices available in the north of the country – for example, Manchester’s average property price is £240,867. Nonetheless, it’s still half of London’s average price of £710,610.

    And that means there’s still enough wiggle room to generate strong rental yields, which any buy-to-let investor should be prioritising. The average rental yield in Bristol is 5.1%.

    The yields are driven by steadily increasing rental prices as a result of exceptional demand. The previously mentioned universities produce 10,000 new graduates into the city each year, and there’s a growing trend of people moving from London to Bristol. This means there are high numbers of young professionals, attracted by the city’s excellent engineering, finance and tech industries, to provide plenty of potential tenants.

    In addition, the outlook for the city is positive. It was one of the first to formally recognise the climate crisis and this has focused all future development and regeneration efforts.

    Over the coming years, the aim is to create a sustainable, community-focused city with a world-leading, circular economy. To do this, there are several projects planned or already in action:

    • Temple Quarter – This area will be transformed into a mixed-use community with 10,000 new homes, 22,000 new jobs, and upgrades to the Temple Meads train station to expand rail capacity.
    • Avonmouth Port – Expansions to the port intend to attract even more manufacturing and engineering companies, prioritising those with net-zero models.
    • City Centre – The city centre is due an intensive overhaul, with a City Centre Development and Delivery Plan on the way that will provide the blueprint for the city centre’s transport, commercial, residential, leisure and hospitality infrastructure, in addition to detailing initiatives to meet environmental objectives such as becoming carbon neutral by 2030.
    • The council’s partnership with Bristol Energy will invest over £1bn in smart, sustainable energy projects, which will have knock-on benefits for the community (e.g. jobs) and the city’s economic output.
    • As these projects progress, and the city continues to evolve, it should have a positive impact on the local property market. Getting in now, although more expensive than other cities across the UK, could reap significant benefits for investors in the future.

    If you’re interested in property investment in Bristol, get in touch with our team to discuss your options.

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      All information accurate as of July 2022.

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