13 Nov by admin

Bristol Property Investment – The Best Buy to Let Property Areas in Bristol

When it comes to UK property investment, Bristol is one of the hottest property markets in the country that continues to grow year on year. The city has performed incredibly over the years and is set to continue such growth in 2021 and beyond. As of 2018, the Bristol property investment market was ranked 5th for buy to let properties, showing it is a rich property investment opportunity. With a modern economy built on creative arts, aerospace, and electronics industries; Investment properties in Bristol are often considered one of the best areas in the UK for a property investor looking to invest in the South of England. It’s no wonder that investors are putting their money into this vibrant city as it has such a high demand for new residents. The city is one worth considering for a property venture.

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Bristol's Buy to Let Investment Market

Regeneration Bristol Regeneration Bristol

Bristol’s local economy generates around £32 billion per year and is expected to grow by 3% over the next 10 years. There are many reasons to invest in investment properties in Bristol, with many statistics surpassing the national average. Along with a booming property market and one of the best investment areas, Bristol rental property has a lot to offer residents with some awe-inspiring statistics. It was the first UK city to undertake a local currency project, the Bristol Pound, carving the way for other towns to add some momentum into their local economies and businesses.

There is a wide range of property types available, from waterfront studio residential property to Victorian terraced houses. As one of the UK’s most popular places to live and visit, Bristol investment property helps make up a thriving buy to let market. The Bristol housing market has become increasingly popular over the past decade. Houses and flats are the most popular investments, but the possibilities are endless. This could be because of how liveable the city is on the whole. In 2014 and 2017, Bristol was named the best city to live in Britain by the Sunday Times. This then meant the demand for more properties increased as people realised it’s potential.

A report in 2020 found that the three top words used to describe the city were “diversity,” “culture” and “green.” These words paint a perfect picture of the city, with over 91 different languages spoken by residents. Bristol is fast becoming one of the most thriving and innovative cities in the country, and if you are looking to invest in UK property, it may be worth considering.

The city is currently the 10th largest in the UK, with a population growing more quickly than other UK cities. Over the next 25 years, the population is set to rise by 15%, which is higher than England’s other core cities.

The Bristol housing market and the buy to let market, in particular, has seen a wealth of growth. Bristol buy to let hotspots such as Clifton and Redland show that the property investment Bristol offers is popular in the city centre and outside of the city centre. One of the most significant factors relating to the Bristol buy to let market is the strong economic growth over the past few years. The city is driven by an office-based employment sector which is only thought to strengthen over the coming years. For Bristol property investment dreamers and those looking to invest in Bristol buy to let, the demand means you’ll have a steady stream of potential tenants. Tenants will primarily be young professionals who filter into the city to live and work in the strong business sector.

Why Invest in Bristol?

Property investment Bristol is a desirable prospect for investors, with property values rising regularly. The South West of England, primarily led by Bristol, continues to thrive every year. Despite Brexit and Covid-19 pandemic issues, Bristol buy to let investment couldn’t be any better. There are so many reasons to invest in the city and why you should buy property in Bristol.

This city has the highest proportion of workforce cycling and walking to work than anywhere else in the UK. Young professionals want a comfortable commute into their workplace, which is why so many choose to live in Bristol city centre.

With more accommodation and properties available in the centre, it allows professionals to commute without the hassle of driving or using public transport. Rental property in Bristol is highly sought after by this demographic, making it an exciting option for investors.

If you’re still asking yourself “why invest in Bristol?”, it may be that you need some more information and facts. As an investor, you’ll understand one of the key rules of how to invest in UK property is to know the best areas to make returns and increase capital growth.

Record Breaking Rise in UK Renters Record Breaking Rise in UK Renters

Increasing Property Prices Bristol

Bristol property prices are increasing at an excellent rate. The city possesses one of the top 25 highest yielding postcodes in the country. According to Zoopla, the BS2 postcode covering St Agnes and Kingsdown grants investors rental returns of over 6% with an average property price of £265,331 in January 2021. Due to increasing property prices, investors will find they gain sizeable capital appreciation when choosing property as an investment, especially if they invest in Bristol. In general, UK property prices are set to increase over the coming years, with a predicted 20.4% growth by 2024. Bristol and the South West will equally see respectable growth levels of around 17.3%.

The majority of houses in Bristol sell for an average price of £332,546 in 2021 with two-bedroom flats and apartments selling at around £282,266. Out of Bristol’s overall sold properties, the prices are up by about 7.72% in 2021 compared to January 2020. A key reason investors choose to buy property in Bristol is the gains of revenue and profit they achieve over their investment period. Bristol property prices can be sizeable in areas, which may price investors out of a venture.

Overall, though, increasing property prices in Bristol offer the potential for sizeable gains in 2021 and beyond, resulting in rental property in Bristol being an excellent choice for investment.

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A Growing Population

Bristol’s population is estimated to be over 463,400, meaning it is one of the largest cities in the South West. The local authorities predict that by 2029, the population will reach just under half a million. Since Bristol boasts the 10th largest population in England, it’s no wonder investors find that property investment in Bristol works great for them. Having a larger population means that properties will have a higher demand as more tenants want rental accommodation. A growing population has led to high rental demand and continued capital appreciation on properties you invest in. This means in 2021, property investment in Bristol has never been better.

Expanding Economy

Since 2006, around 23,000 new homes have been built in Bristol which takes the total number of homes in the city to over 200,000. This growth will continue in the future, with Bristol city council building 33,000 new homes by 2036. This expanse poses a rich property investment opportunity, with tonnes of investment properties in Bristol to choose from.

Due to a growing population, Bristol is now one of the biggest employers in the UK. There are around 42 million people within 150 miles of the city, making it a hotspot for businesses. The biggest strength in this regard lies in its science and tech sectors that have enjoyed considerable growth over the last decade. Bristol is home to huge companies like Airbus and Rolls Royce. It’s predicted that this growth will continue to rank above the national average. That means there will be significantly more jobs in these sectors of Bristol’s workforce.

Around 80,000 jobs are expected to be created by 2036. The city already has an employment rate that is 6% higher than the UK average, showing just how well Bristol is thriving despite economic pressures like Brexit and Covid-19.

Bristol Property Investment Bristol Property Investment

Leading Universities 

Bristol is a significant university student city; this means it’s popular for shared student houses and student buy to lets too. The city’s two leading universities, University of Bristol and UWE Bristol, are home to over 56,000 students as of 2021.  These rates have increased significantly over the past five years, with an 18% rise. Likewise, Bristol continues to attract overseas students, with the number of international students doubling since the turn of the century. Impressively, around a quarter of students attending the University of Bristol are from overseas.

Popular locations and the best investment areas for students are Clifton, Redland, Filton and Fishponds. Student rental property in Bristol is in abundance. There are multiple purpose-built university student accommodations (PBSA) and numerous house occupancy available within these areas and the city centre.

With around 35,600 students over 18 and living full-time in Bristol during term time, student property investment in Bristol is a perfect investment for anyone wanting a stream of available tenants. In recent years, there have been few new university student developments in the centre of Bristol. However, there is substantial demand at present. This bodes well for investors looking at student accommodation investments in Bristol in the near future.

Property Bristol Regeneration 

Along with The University of Bristol’s plans to build a new £300m campus in the Temple Quarter, there have been multiple ongoing regeneration schemes over the last five years.

Local authorities continue to improve the city’s built environment, reduce social exclusion and strengthen the economy. The Filwood Green Business Park regeneration, located in South Bristol provides superb accommodation and development for small and medium-sized businesses. The business park opened in 2015 and created hundreds of new jobs and opportunities for South Bristol locals.

The city centre regeneration brings in new potential tenants for investors to target with their properties. Bristol tops the table for investor returns, and with regeneration projects increasing, this number is only set to soar.

 

High rental demand

The Bristol rental property market is incredibly attractive to investors. Around 29% of the city’s population live in privately rented accommodation. This number has increased from 12% since the turn of the century. The Bristol buy to let market is one of the best in the UK and is sure to provide investors with capital appreciation and rental yields they could only wish for.  The current asking rent sits at £1,429, making the average rental yield a sizeable 5.15%- another reason why the Bristol rental property market is so coveted.

Key factors influencing the high rental demand, include new transport and commuter links to London. This means the capital is now merely an 80-minute journey from Bristol. Birmingham can also be reached within less than 2 hours, and Cardiff is reachable in just 50 minutes. The international airport located in Bristol also means locals, visitors, and tourists can access many continents within a matter of hours. Bristol property investment will continue to thrive as more destinations are added to the airport, and as more people realise the beauty of this Southern town.

Bristol's population is estimated to be over 463,400 people, meaning it is one of the largest cities in the South West. The local authorities predict that by 2029, the population will reach just under half a million.

Daniel Williams, RWinvest

The Best Property Bristol Areas to Invest 

Bristol House Prices by Area

Apart from London, Bristol is the city at the top of the list for areas most searched by would-be tenants looking for a living space. This is because the city has an excellent quality of living, with several nice areas in Bristol. The demand for luxury accommodation and housing means that tenants are willing to pay higher property prices in Bristol that meet their expectations.

The best areas in Bristol to invest in property are still in need of new developments, and investors who want to gain capital appreciation and earn considerable returns. Any investor wishing to invest in Bristol and acquire buy to let Bristol properties must know the top hotspots to be successful and expand their property portfolio. Here is a list of Bristol house prices by area.

Population: 32,400

Average property price: £568,027 (based on a BS8 postcode)

 

Bristol city centre is one of the best areas for investment properties in Bristol. Packed full of small townhouses and modern city centre apartments, there is something for everyone. There is plenty of quality property here, making it an example of nice areas in Bristol to live. The rental returns of the BS1 postcode are around 4.2%. There is an increasing demand for property investment. Bristol locals and even those from further away enjoy living in the vibrant centre.

Bristol’s student property investment hotspot has to be Clifton, famous for its Suspension Bridge and is one of the city’s most prestigious areas. It has easy access to the city centre but still has plenty of bars and restaurants to explore. It’s one of the best spots to find flats in Bristol to buy due to high demand from those looking for a Bristol rental property. Many residents love the community vibe of Clifton, and all it has to offer. Investors often find that owning a rental property in Clifton reaps a substantial financial reward. The rental returns are similar to that of the city centre, around 3.54%. So, if you are looking for student properties, this is likely the area for you.

Population: 4,800

Average property price: £886,375 

 

Just across the Suspension Bridge, you’ll find Leigh Woods, one of the more suburban areas of Bristol set among woodland with botanical gardens and a court estate. Various mansions reside there, but also many buy to let opportunities. However, bear in mind that you’re most likely not going to find any modern apartments here.

Despite potentially prohibitive Bristol property prices that sit way above the UK average, it is still one of the best Bristol buy to let hotspots around for those seeking more luxurious residential property. As you may expect, current asking rent in the area is significantly higher than the city’s average, sitting around £2,318. This means the area has rental yields of just over 3.1%.

Population: 24,800

Average property price: £479,684 (based on a BS6 postcode)

 

With price growth outperforming the broader Bristol property market, growing by 8.9% in 2021 compared to 2020, property for sale in Redland, Bristol is seen as a worthwhile investment. This is one of the best areas in Bristol due to having lots of beautiful green space along with parks and scenic views, which is why tenants enjoy living and working there. The price of properties within the Redland area is continually gaining capital growth as more people flock to the city to find property to rent and property to buy in Bristol. This means that property for sale in Redland, Bristol is incredibly sought after.

Population: 12,400

Average property price: £412,463 

 

Often described as “Bristol’s Notting Hill”, what was once an unnoticed and under-appreciated area is now booming. The Bristol property investment market seems to have significantly increased over the last few years, and buy to let Bristol properties sell virtually overnight here with 5 to 10% above their asking prices. If you’re an investor wanting to make a profit from your property investment and looking to buy property in Bristol, Southville is the place to do it.

Population: 13,400

Average property price: £299,426

 

Totterdown and Temple Meads are sometimes seen as the cheaper option of property to buy in Bristol, which is perfect if you are a property investor. The area is attractive for those looking to invest in the Bristol property market, as it is an arty and bohemian part of town with affordable property values. Vale Street, located in the centre of Totterdown, is thought to be the steepest residential street in England.

You may know of the area from seeing pictures of the beautiful multi-coloured houses online. It’s right by the developing Creative Quarter too, which is part of the Bristol regeneration scheme. Due to the regeneration and money being spent on Totterdown and Temple Meads, they are some of the best Bristol buy to let hotspots and areas of Bristol. You can expect yields of around 5% due to these lower prices. These competitive property values make it one of the better investment properties in Bristol and one of the best opportunities in this list of Bristol house prices by area.

City Centre and Clifton

Population: 32,400

Average property price: £568,027 (based on a BS8 postcode)

 

Bristol city centre is one of the best areas for investment properties in Bristol. Packed full of small townhouses and modern city centre apartments, there is something for everyone. There is plenty of quality property here, making it an example of nice areas in Bristol to live. The rental returns of the BS1 postcode are around 4.2%. There is an increasing demand for property investment. Bristol locals and even those from further away enjoy living in the vibrant centre.

Bristol’s student property investment hotspot has to be Clifton, famous for its Suspension Bridge and is one of the city’s most prestigious areas. It has easy access to the city centre but still has plenty of bars and restaurants to explore. It’s one of the best spots to find flats in Bristol to buy due to high demand from those looking for a Bristol rental property. Many residents love the community vibe of Clifton, and all it has to offer. Investors often find that owning a rental property in Clifton reaps a substantial financial reward. The rental returns are similar to that of the city centre, around 3.54%. So, if you are looking for student properties, this is likely the area for you.

Leigh Woods

Population: 4,800

Average property price: £886,375 

 

Just across the Suspension Bridge, you’ll find Leigh Woods, one of the more suburban areas of Bristol set among woodland with botanical gardens and a court estate. Various mansions reside there, but also many buy to let opportunities. However, bear in mind that you’re most likely not going to find any modern apartments here.

Despite potentially prohibitive Bristol property prices that sit way above the UK average, it is still one of the best Bristol buy to let hotspots around for those seeking more luxurious residential property. As you may expect, current asking rent in the area is significantly higher than the city’s average, sitting around £2,318. This means the area has rental yields of just over 3.1%.

Redland and Cotham

Population: 24,800

Average property price: £479,684 (based on a BS6 postcode)

 

With price growth outperforming the broader Bristol property market, growing by 8.9% in 2021 compared to 2020, property for sale in Redland, Bristol is seen as a worthwhile investment. This is one of the best areas in Bristol due to having lots of beautiful green space along with parks and scenic views, which is why tenants enjoy living and working there. The price of properties within the Redland area is continually gaining capital growth as more people flock to the city to find property to rent and property to buy in Bristol. This means that property for sale in Redland, Bristol is incredibly sought after.

Southville

Population: 12,400

Average property price: £412,463 

 

Often described as “Bristol’s Notting Hill”, what was once an unnoticed and under-appreciated area is now booming. The Bristol property investment market seems to have significantly increased over the last few years, and buy to let Bristol properties sell virtually overnight here with 5 to 10% above their asking prices. If you’re an investor wanting to make a profit from your property investment and looking to buy property in Bristol, Southville is the place to do it.

Totterdown and Temple Meads

Population: 13,400

Average property price: £299,426

 

Totterdown and Temple Meads are sometimes seen as the cheaper option of property to buy in Bristol, which is perfect if you are a property investor. The area is attractive for those looking to invest in the Bristol property market, as it is an arty and bohemian part of town with affordable property values. Vale Street, located in the centre of Totterdown, is thought to be the steepest residential street in England.

You may know of the area from seeing pictures of the beautiful multi-coloured houses online. It’s right by the developing Creative Quarter too, which is part of the Bristol regeneration scheme. Due to the regeneration and money being spent on Totterdown and Temple Meads, they are some of the best Bristol buy to let hotspots and areas of Bristol. You can expect yields of around 5% due to these lower prices. These competitive property values make it one of the better investment properties in Bristol and one of the best opportunities in this list of Bristol house prices by area.

How Do Investment Opportunities in the Rest of the UK Compare to the Bristol Property Market?

While there are many Bristol areas with some promising benefits in terms of capital growth and rental demand, high property prices in Bristol and resultantly lower rental yields are causing many people to look elsewhere for buy to let investment opportunities. So how does investing in property in Bristol compare to investment opportunities in other UK cities?

Let’s start with London. The London property market has received a lot of negative press over the years regarding property investment, due to huge prices, low rental yields and slower house price growth. For context, London house prices, which currently sit at £903,448 on average, are set to increase by 12.7% by 2024, which is the lowest predicted growth in the country. While the Bristol property market isn’t far off from London’s in terms of yields, except 6% yields in the BS2 postcode, property price growth tends to be stronger in Bristol than London. It’s clear buy to let Bristol properties are a more tempting offer for investors than those offered in the capital.

When you compare Bristol rental property investments with those in cities up North, however, such as Liverpool and Manchester, it’s evident that there are more attractive opportunities elsewhere. Around 13% of people are leaving London to move up North, demonstrating a wider trend of people wanting to live in the region. Businesses and people alike are flocking to the Northern Powerhouse, which boasts unparalleled growth and affordable living costs.

Liverpool's iconic skyline Liverpool's iconic skyline

Should I Still Invest in Bristol When There Are Better Investment Opportunities up North?

Liverpool and Manchester are recognised as some of the best cities in the UK for buy to let investment, with some strong yields of up to 10% in the L1 postcode, and colossal property price growth predictions of over 27% by 2024. According to Savills latest forecasts, property price growth for England’s South West region stands at 17.3% within the same period. This means that if you’re looking for property to buy in Bristol, you can still expect a level of growth, but not as drastic as that of North West cities. The North West offers some of the best UK property investments available, with many statistics far higher than the UK average.

While you may be looking for Bristol property for sale privately, the North West offers some of the best deals on the market. If you are a property investor, before deciding on investing in Bristol property for sale privately, you should research the North West region.

Find Your Ideal UK Investment Property

Want to Learn More About Investment Opportunities? Start Your Journey With RWinvest

Interested in the property market, and keen to find out more about UK property investments? We have a number of free videos and in-depth area guides  and tools available on our website as a great way to get started.

But if you are looking to explore investment opportunities, both residential and student property investment, be sure to contact us today. RWinvest is an award-winning investment company specialising in UK property investments. We have a number of buy to let investment opportunities to choose from, with exciting residential and student properties like the incredible ELEMENT- The Quarter. If you are looking to invest in UK property, contact us today to learn more.

 

About Our Data

Please note, average property prices are gathered from Zoopla and Rightmove in January 2021. Some prices are based on certain postcodes in which the areas are located, and property types vary in price among these areas. Rental yield percentages and best areas to invest are taken from Totally Money Buy to Let Rental Yield Map. Some yields were calculated using data from Zoopla. Population statistics found through Bristol City Council.