Tue, 14/12/2021 - 12:00
· 2 min read

Bristol BTR Makes Compelling Investment Case with Robust 2022 Outlook

The city of Bristol and surrounding areas makes a compelling case for BTR investors and as such a number of schemes are underway in the city.

Key Q3 2021 insights include:

  • Bristol is one of the most populous cities in England, home to two universities, and has a rich history. It also has strong transport links to London and its own airport.
  • The city is home to a number of industry clusters including creative and digital, and the fintech sector, as well as having a strong professional and financial services presence too.
  • BNPPRE analysis shows there are c.800 completed BTR units in the city with another c.2000 in the pipeline, most of which are expected to complete by 2024.
  • The demographics support the growth in BTR in the city. The population of Bristol is expected to grow 5.9% over the next ten years (compared to 4.2% in England). In particularly, the 25 - 44 years cohort is expected to grow well above the national average at 6.1%, compared to -1.3% in England, over same period.
  • There is also a higher than average proportion (20.8%) of households in the private rented sector, whilst home ownership is below the national average, at 58.8%.
  • Housing affordability in Bristol has impacted on home ownership levels. Average house prices, at £280,000, are above the national average, and similarly, the ratio of house prices to earnings in Bristol is also greater than the average for England, at 8.59. (Source: ONS).

Josh Gunn, Head of Bristol Office, comments: “Bristol has a wonderful sense of identity, one of the key factors that makes it such an attractive place to both live and work. The city and surrounding areas is one of the UK cultural and innovation hotspots, and this is translating into an increasingly attractive BTR proposition. Industries are thriving, the population in booming at a rate above the UK average, and wages are highly competitive. Even the pipeline of BTR will not be sufficient to satiate the thirst of market demand where more than a fifth of households rent. All signs point to Bristol as the city that should be top of investor’s watchlist for opportunities going into 2022.”

Rebecca Shafran, Alternative Markets Research Associate Director, comments: “The rise in the Build to Rent sector outside of London continues to be in the spotlight for investors who are keen to identify new opportunities in and around regional cities.  Bristol certainly makes an interesting proposition for those investors, where the fundamentals of strong demand and short supply are underpinning sector growth. The city also benefits from its reputation as vibrant, aspirational, and with a fierce sense of community. Post pandemic, people are reassessing their priorities and the ability of Bristol to deliver on career ambitions and work/life balance is huge upside factor.”

Bristol BTR Makes Compelling Investment Case with Robust 2022 Outlook