Welcome to Bristol
Bristol is a beautiful, historic city in the heart of England’s south west with an independent spirit and an unmistakeable vibe. High quality jobs, a unique cultural offering and great connectivity are just three of the reasons why people move to Bristol from across the country and the world.
Located on the River Avon, this former port city offers stunning scenery and maritime history alongside a thoroughly modern city centre. A programme of regeneration works is underway and the local universities offer world class education, research and development prospects.
It is also a city with nowhere near enough homes and a huge surplus of people competing for the best accommodation. Rents are very high and supply is low – in other words, Bristol offers the perfect conditions for property investors.
Economy
Bristol is one of the UK’s key economic hubs with a wide base of industries, a strong and diverse talent pool, and economic growth prospects which are far higher than the UK as a whole.
With a total vale of more than £15bn, Bristol’s economy is already sizeable, and a report from Avison Young shows that this is just the start. The data shows that the city’s economy is projected to grow 8.9% over the next five years, far outpacing the rest of the UK.
Population & Housing Market
Bristol is one of the fastest growing cities in the UK. Over the last Census period, it’s population went from 428,200 to 472,400 – growth of 10.3%, exceeding both regional and national growth averages. Furthermore, Bristol City Council notes that the speed of growth is increasing. The last full year on record saw the largest annual increase in population since 2016, making Bristol the second fastest growing core city after Manchester in terms of population.
By 2040, the Council estimates that Bristol’s population will rise to more than 525,000 as the current pace of growth shows no signs of slowing. This creates an obvious problem of housing supply that will need to be addressed.
It has been estimated by planning and architecture practice Marrons that Bristol’s predicted 2040 population means that an additional 60,000 homes will need to be built in the city. However, the latest draft Local Plan from the City Council includes plans for just 35,000 new homes in that time period – meaning that a major supply issue over the next 15 years is highly likely.
That is on top of the existing supply issues which are already pushing prices up. As of Q2 2024, Rightmove records the average property price in Bristol is 8% higher than the 2021 peak.
Rents are similarly affected by the housing shortage in Bristol. Research from the Living Rent Commission shows that rents are increasing 12.9% year-on-year in the city which is serious growth.
Bristol’s population growth and housing market offers everything that investors could ask for – high growth, low supply and construction rates that are not adequate to meet demand.