Bristol Property Investment 2023 – The Best Buy to Let Property Areas in 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 one of the 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.

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, Covid-19 pandemic issues and the general economic turbulence, 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.

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 6.18% with an average property price of £322,531 in May 2023. 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 6.5% growth by 2027. Bristol and the South West will equally see respectable growth levels of around 6.2%.

The majority of houses in Bristol sell for an average price of £392,402 in 2023. Out of Bristol’s overall sold properties, the prices are up by about 6.13% in 2023 compared to March 2022. 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 2023 and beyond, resulting in rental property in Bristol being an excellent choice for investment.

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 2023, 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 Covid-19 and economic uncertainty.

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 2023.  These rates have increased significantly over the past five years, with over 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.

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 couple of 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 £1,867 PCM, making the average rental yield a sizeable 5.71%- 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.

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 £741,087 on average, are set to see a negative increase of -1.7 % by 2027, which is the lowest predicted growth in the country. While the Bristol property market and property price growth tend 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 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 8% in the L1 postcode and the highest property price growth predictions of over 11.7% by 2027. According to Savills latest forecasts, property price growth for England’s South West region stands at 6.2% 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.