The rising cost of debt and cost of living pressures have done little to subdue demand for homes in Bristol, according to JLL.
The global property advisor released its new 'Big Six' report where it recorded that the average sales and rental values rose 3.6% and 13.4% respectively.
The ‘Big Six’ research, which tracks residential development activity, prices and rents across Manchester, Birmingham, Leeds, Bristol, Edinburgh and Glasgow, highlighted continued demand from young professionals plus both domestic and international students as the key drivers for the increase in value, alongside a reduction in supply and building and planning constraints.
JLL found, in Bristol, rental property stock fell by 14% in the second quarter of 2023 and by 18% since before the pandemic, as landlords continued to leave the market "due to economic constraints". At the same time, over the past 10 years the city's population grew above the 海角视频 average at 10.3%, "placing even greater pressure on the residential market".
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The property advisor concluded that the increase in rents demonstrates a demand for city centre plus the need for more homes.
Looking at the sales market, property values also grew but at a slower pace at 3.6%. JLL found one bedroom apartments had the highest growth at 8.7%, with the average price now sitting at £250,000 in Bristol.
Nicholas Rumble, director of residential development in Bristol, commented: “Bristol has long been a victim of its own success. It continues to provide a place where people want to live, work and study but it has been hampered by a lack of available residential properties and tight planning regulation which has slowed new properties coming to market. If we are to keep up with this continued demand and allow the economy to keep growing, then we need to encourage more housebuilding in the places where we need it most.”
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Marcus Dixon, director of 海角视频 residential research at JLL, added: “Younger residents and students are continuing to drive demand across the 海角视频’s regional cities, as they prioritise the neighbourhood in which they live and access to key amenities. This is a trend that we expect to continue, particularly as young professionals seek employment opportunities outside of the capital due to cost of living pressures.
“What has become clear through our analysis is that neither the sales nor rental market is currently able to keep up with demand. With fewer landlords entering the market, and the rate of new builds slowing, government intervention is needed to restimulate the market and ensure that there are enough homes for the people that need them. By creating opportunities for people to live and work in our regional cities, it will stimulate further inward investment and contribute to the success of our cities long term.”
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