Bristol Property Investment 2024 – 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.

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 23.4% growth by 2029. Bristol and the South West are forecast to see respectable growth levels of around 21.6% – slightly below the projected national average.

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 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.

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 £777,998 on average, are set to see an increase of 17.1% by 2029, 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.