With the UK House Price Index reporting that property prices have fallen by one per cent compared to the previous month and experts predicting this trend will continue into next year, investors should begin planning their next purchase to take advantage of a less competitive market.
Bristol could be the next perfect location for an investment opportunity and was voted one of the best places to live in the UK by readers of The Sunday Times earlier this year.
With a strong economy, many unique cultural attractions and a thriving centre, Bristol represents the very best of modern city living.
Although house prices in Bristol are higher than the UK average, many other factors make the city ideal for the next location in anyone’s investment portfolio.
One consideration is the high level of demand for property in the area, as this will allow for competitive pricing and fewer vacant periods.
In August 2022, the ONS reported that rent prices in the South West had risen 4.3 percent on the previous year.
In Bristol, this is due to a combination of factors, including the city’s high employment levels, the growing tech start-up scene and several notable engineering and technology businesses with hubs in the local area, such as Airbus, Rolls Royce, Ovo Energy and Aardman Animation Studios.
With a swathe of young professionals looking for housing and two nearby universities brimming with potential tenants, houses of multiple occupations (HMOs) are becoming an increasingly popular route for investment across the city.
However, for investors seeking buy-to-let properties, it is essential to know which properties are in demand and what is attractive to most potential tenants.
Not only will this ensure that the vacant property is filled quickly, but it also ensures that rents can remain competitive.
For example, the young professionals who make up much of the tenant population in Bristol typically want to live in the thriving city centre, close to local hotspots, amenities and transport links.
With increased demand pushing the price of properties up, competitively priced, suitable quality property in a central location is likely to be snapped up quickly and rarely vacant – a perfect investment opportunity.
The young professional demographic additionally suits many investors as they tend to want smaller properties, which often require less upkeep from a landlord.
But it’s not just short-term considerations such as property appearance that investors need to consider.
Investors should also consider the long-term future of their preferred location to ensure that the demand for property will stay the same over time and their investment continues to yield a return.
Bristol is ideally placed to meet these long-term criteria as a city that is expanding and developing, demonstrating the colossal potential to become a significant economic hub in the South of England.
The Centre for Economics and Business Research (Cebr) has predicted that Bristol will become one of the top ten largest economies for employment growth by the second half of 2023, partly due to the £1 billion investment in regeneration plans for the city that was launched in 2020.
The funds are earmarked for various projects, including developing the Temple Quarter, featuring a refurbished Temple Meads Station, a new University of Bristol Enterprise campus, and 10,000 new homes.
With additional funding from the Government’s Levelling Up scheme announced in 2022, these investments will deliver high levels of social value and put Bristol on the map as a future economic hub in the South West.
As well as the massive influx of funds and economic growth giving Bristol stability, the growing student population is a reflection of the thriving and dynamic city centre.
Equally, many graduates are tempted to stay in Bristol after university due to a combination of job and lifestyle opportunities, meaning there will always be demand for affordable, attractive housing.
Bristol’s renowned, colourful street art, an abundance of independent shops and restaurants, and numerous historical and cultural attractions make for a unique city recently voted eleventh trendiest destination on National Geographic’s ‘Cool List’, beating well-known favourites like Paris, Abu Dhabi and Amsterdam.
Both a hub for business and culture, Bristol has a lot to offer its residents and investors.
From the bustling harbourside to the up-and-coming Temple Quarter, Bristol has the stability of a big city with a close-knit community spirit.
Those looking for long-term investments should look to Bristol as somewhere that will remain a popular destination for years to come and even a potential home for the future. With house prices beginning to fall, now is the perfect moment to invest in the South West property market.
McArthur’s Yard is a new development in Bristol’s harbourside with 1,2, and 3-bed apartments and duplexes opening in 2023-2024.
Rob Carter, Marketing Manager at Guinness Homes.
Guinness Homes is part of The Guinness Partnership, founded over 130 years ago and is one of England’s most extensive affordable housing and care providers.
Guinness is committed to improving people’s lives by providing as many high-quality, affordable homes as possible and the housing and care services customers most need. Guinness has more than 140,000 customers nationwide, living in over 65,000 homes.