Bristol residential property market
Bristol’s property market is currently hotter than London’s. Coutts reveals what’s behind this boom and what it means for homeowners and investors.
4 min read
But what’s driving this stellar growth and is it likely to continue in the coming year?
Bristol is leading the way as the fastest growing city in terms of house price rises. For example, Hometrack recorded a 10% rise over the last 12 months as a result of local and national drivers.
As affordability has continued to bite in London, some homeowners and investors have been ‘pushed’ from the capital in search of a new location that offers a strong infrastructure, economic growth prospects and long term potential. Supported by significant levels of inward investment and regeneration projects over recent years, Bristol meets the requirements of a growing pool of property purchasers, with house price growth outpacing London over the last 12 months.
The recent unveiling of the University of Bristol’s new campus located at the heart of the city’s Temple Quarter Enterprise Zone is expected to have a further positive impact on the local economy. The project, valued at £300m, is to be built on a derelict site near to the city’s busiest train station, Temple Meads.
When fully developed, the 70 hectare Bristol Temple Quarter will have the potential to attract over 17,000 new jobs and add a further £100m a year to the city’s already vibrant economy. Demand for office space in the centre of the city is strong and businesses from a variety of sectors are expanding their facilities here. The government’s Bristol Economic Briefing released in December 2016 noted that professional services business EY recruited 120 staff over the last year, while Desklodge, the offices provider, has almost doubled the space it occupies.
A £200m investment has also been allocated for a MetroBus network to improve transport in and around the city. These infrastructure investments and increased employment opportunities are further supporting property values and rental yields in the local area.
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Jonathan Hopper, managing director of Garrington Property Finders, one of the firms on our panel of buying agents, added: “With continued regeneration across Bristol, the potential for future property price growth is encouraging, albeit is not immune to wider national influences.” As seen in other UK city hotspots, Hopper noted: “price earnings ratios are rising sharply too, with the average price of a Bristol home now some 9.2x that of local salaries, and the supply of new homes is also set to increase which may restrict price growth as developers start to compete for buyers.”
While double digit house price growth looks unlikely to be repeated in 2017, argues Hopper, it is quite reasonable to expect that purchaser demand will remain strong for homes in the city, and that the local market will firmly remain one of the standout locations for some time to come.
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