Why Bristol is great for Property Investment

Bristol is one of the top tourist destinations in the U.K with a population of more than 450,000 people. Bristol has a strong housing market with great demand from both buyers and renters. Bristol has a technology and financial based economy with wonderful job prospects and opportunities. This has fuelled the demand for housing in the city and it is reported that a lot of Londoners are migrating to Bristol.

Median property prices in Bristol stand at £311,000. This is much more than median home prices in London (£301,000). In fact, median home prices in Bristol are £10,000 pounds higher than the national average.

Property price performance in Bristol as of December 2018

If you look at the increase in property prices, you would find that prices have increased in Bristol by almost 300% in the last 20 years. In comparison, property prices in London have increased by 250% over the same period. Bristol has beaten London hands down in growth in property prices in the last 5 years. In the last year, property prices in Bristol have appreciated by 1.4% whereas the increase across the nation has been only 1.35%. In the last few months, property prices across the nation have fallen slightly by 0.27%. But Bristol housing market has remained firm, registering a positive change in prices of 0.66%.

It is interesting to note that house prices in the southwest of the country have not fallen as steeply as house prices in other parts of the country during the recession of 2007. Even the post recession growth registered by Bristol has been far more impressive than other cities like Birmingham and Manchester.

Days on the market

The number of days a property stays on the market is an indication of the strength of the housing market. On an average, a property in Bristol stays on the market for 51 days before it is sold. The national average for days on the market is 57. A property in London stays on the market for nearly 80 days. This shows that Bristol housing market has consistently outperformed the national housing market.

Higher rental yield

If you look at the southwest alone, you would find that Bristol has consistently beaten other cities in terms of rental income growth. Average rental yields in Bristol have been 4.5% per annum, showing the great demand for housing in this city.

Bristol property market offers not only superior capital gains but also higher rental yields to investors.