House Prices in Bristol: Property Market Overview
Bristol house prices are continually a topic of conversation amongst UK property investors. Home to a diverse and relatively well-off population, Bristol is ranked as one of the best places to live in the UK. The city boasts a creative spirit, historic architecture, a picturesque waterfront and plenty of open space.
As the UK’s 8th most visited city and destination for arts and culture, it’s certainly easy to see Bristol’s appeal. As a result of its proximity to London and a steady stream of talent from the city’s universities, more businesses are setting up shop in Bristol, attracting young professionals and families from across the UK.
House prices in Bristol have been on the rise in recent years. In this article, we take a closer look at Bristol house prices and property market trends.
Bristol Property Market Overview
Thinking of buying a House in Bristol? When looking into house prices in Bristol, first it’s important to understand historical trends and future projections.
- Fifth Largest House Price Increase
In the last 20 years, house prices in Bristol have seen the fifth-largest increase in the UK. The average cost of a property in Bristol in 2022 was £333,000. Twenty years ago, this figure was estimated at around £97,800 – a 240% increase in just two decades.
- Star of the South West
How do Bristol property prices compare to the rest of the South-West? The South-West is home to the second-highest rate of property price growth for any UK region. Annual property prices in this region are £305,000, the average property rising in value by 10.5% in the last year. At the start of 2022, buyers paid 8.3% more than the average price in the rest of the South West for a property in Bristol.
- Still Rising in 2022
Bristol property prices didn’t slow down at the start of 2022. January 2022 alone saw house prices increase by 2.1%. Longer-term trends in the area have seen property prices achieve 8.1% annual growth, and in 2022, first-time buyers are spending a whopping £22,000 more than they were a year ago.
- 2023 Trends and Predictions
Bristol is forecast to be the third strongest market in terms of house price growth, behind Manchester and Birmingham. Demand for housing is outstripping supply as students and young professionals return to city living.
In 2023 JLL predicts annual house price growth in Bristol of 4%, and annual rental growth of 15%.
Is Bristol Expensive?
- UK’s Fifth Most Expensive City
According to Zoopla, Bristol is the UK’s fifth most expensive city to buy a house, with the Bristol average house price now £333,000 (as of the end of December 2022). London takes the top spot, with the average cost of property reaching £524,400 followed by Cambridge, Oxford and Bournemouth.
The average salary in Bristol is £39,400, slightly behind the 2022 UK average of £40,000 a year. Average house prices in Bristol for a one-bed flat in the city £245,000 and £340,000 for a two-bed and £400,000 for a three-bed flat at the end of 2022.
- Increased Rental Demand
Bristol experiences more demand for housing than supply which has pushed rents up. This is one of the major factors making the city one of the most expensive in the UK.
In the second half of 2022, one-bed flats experienced annual rental growth of 25%. In December 2022, average rents for a flat in the city were £1,250 per calendar month, with two bed flats at a cost of £1,600 per calendar month. Considering the average house prices in Bristol, landlords can still generate good yields if they choose the right property..
On average, rents in the city from July 2022- December 2022 grew by 12%.
What is the Housing Market Like in Bristol?
Bristol was dubbed the UK’s wealthiest and most popular place to live, but what has caused this surge in popularity in recent years?
- London Exodus
The off-the-scale demand for housing in Bristol is partly down to the number of Londoners moving out of the capital. In search of space, many London residents are moving down the M4 to Bristol in search of more value for their money.
- Pandemic Trends
The pandemic has upended the way people live and work. As more people work from home, they’re also looking for houses with more space, extra room and in areas close to nature. The South West region as a whole became increasingly popular in recent years, with the average property costing £30,000 more in 2022 than it did the previous year – only first-time buyers in the top 20% of earners will be able to afford a home in the South West.
- Post-Covid Return
With life steadily returning to normal in 2021 and 2022, Bristol saw populations return, which has meant demand for housing outstripped supply. As students and corporate workers returned to the city, rental costs soared.
- Job opportunities and Lifestyle
As a trendy alternative to London, many businesses have set up shop in Bristol due to its cheaper rents and talent provided by an influx of young professionals and well-regarded universities.
Bristol’s burgeoning creative and tech scene attracts more professionals and the influx of young people comes in conjunction with amenities, from coffee shops to bars and restaurants, further pushing up Bristol’s lifestyle appeal.
Are House Prices Dropping in Bristol?
According to the latest figures from the Office of National Statistics, property prices Bristol experienced a 0.2% drop in December 2022 compared with November 2022 – the first decline in more than a year. This dip is less than the UK average, which experienced a 0.4% drop in property prices. The South West saw the most significant monthly price fall, with a movement of –1.8%.
Despite the drop, in the year prior to December 2022, house price growth in Bristol was 13.6%. This compares nationally to an annual rise of 9.8%. The good news for investors is that house prices are falling and are expected to continue to fall in 2023.
However, Bristol is expected to continue to attract those traditionally headed to London, which could see property prices remain buoyant – only time will tell.
Is it Worth Buying Property in Bristol?
Are there cheap houses for sale in Bristol? Bristol is a great destination for property investors. While property prices are above the UK national average, investors looking for a long-term investment in an area with great rental demand and occupancy would do well to look closely at the city.
Looking at Bristol housing market predictions, between 2023 and 2027, house prices in Bristol are expected to grow by 17% and the rental value forecast puts growth at 18.2%. Overall, Bristol property market predictions and favourable and indicate potential capital gains for investors.
Bristol is continually ranked as one of the best places to live in the UK and its tech and creative sectors make it attractive to young professionals – a key rental demographic. A strong housing market with demand from buyers and renters and job opportunities continues to fuel demand for housing in the city, as well as the fact that rents in London are out of reach for many.
Where is the Best Place to Buy in Bristol?
Bristol has expensive and cheap areas, and where you buy will depend on your budget and the rental demographic you wish to target. Property investors should look to Bristol’s up-and-coming areas on the edge of gentrification to find the most profitable properties.
Here are some key areas of the Bristol property market:
Clifton
Clifton is one of the best places to live in Bristol. A leafy suburb on the western edge of the city, the area is home to stunning Georgian terraces, many of which are now upmarket apartments.
Full of independent shops, boutiques and cafes, Clifton offers easy access to all that Bristol has to offer, yet comes with all the benefits of countryside living.
Clifton is home to a diverse range of properties. Three and four-storey mansions in the area include Period II properties in terraced streets. These can sell for between £1 million to £2 million. Most of the more affordable houses in Bristol are smaller townhouses and mews homes. These can go for between £400,000 to £800,000, while flats in period properties sell for between £100,000 to £350,000. Renting in the exclusive address of Clifton can cost between £275 – £325 per week.
Kingsdown
Kingsdown is a popular area with students alongside Redhall and Stokes Croft. Most students at the University of Bristol can find affordable rental accommodation in this area. Especially when compared to sought-after areas like Clifton.
Kingsdown offers a good mix of properties, plenty of bars and pubs, as well as being located in close proximity to Bristol city centre. Plus it’s only a short walk from the University of Bristol, so it’s not hard to see the appeal of this area that offers all the student essentials.
In terms of Bristol house price trends, properties in Kingsdown sold for an average price of £428,201 in the last year, 1% up on the 2020 peak. The leafy, residential streets offer plenty of houses with multiple bedrooms that would make great student properties.
Brislington
Southeast of the city, Brislington is an area that attracts a good mix of families and urban professional couples. Its appeal has led to a rise in property prices. In 2012, the average asking price of a property in Brislington was £166,192. Today, houses on the market go for around £332,509 – an increase of over 100%. High demand for housing is continually pushing up property prices in BS4. Particularly as properties in the area become popular with families.
Filton
The family-friendly area of Filnton is close to the University of West England. The area is appealing to first-time buyers because it’s cheaper than other areas of Bristol. Plus it has a range of properties with shared ownership.
Bristol terraced houses are extremely popular with buyers and sell for around £346,427. If you want to buy a flat in Bristol, apartments in the Filton neighbourhood can be secured from £193,630.
Knowle /Knowle West
Around 1.5 miles southeast of Bristol city centre is the residential area of Knowle and Knowle West. It is an up-and-coming destination with plenty of green space. This residential area is predominantly home to young families. But, as gentrification creeps onward, this could be a great area to buy if you are looking for an investment property.
While few young professionals have ventured this far out, Knowle West could be the Easton of 10-15 years ago. The well-built 1930s houses with large garages and gardens will probably see a huge leap in value a few years from now. Property prices in Knowle cost an average of £361,33, up 13% on the previous year.
Is it a good time to buy property in Bristol?
Data shows that so far, the 2023 Bristol housing market has fared better than many predicted. Buyer demand is increasing and in January 2023, the number of people contacting agents was up 11% compared with the same period in 2019.
Overall, there is still an overall shortage of property for sale in Bristol, down by 24% compared to 2019. However, there is more choice for buyers than at the same time in 2020.
While the gloomy headline news around interest rates, inflation and cost of living may suggest now is not the optimal time to be purchasing property, for those interested in the rental market, there are plenty of prospects to gain decent yields. The rental market has risen at a record rate and with Bristol’s popularity not abating anytime soon, there are plenty of opportunities for investors.
Are House Prices Still Rising in Bristol?
Bristol property prices took their first fall in 12 months by 0.2% in December 2022. Despite this, Bristol house prices had the highest increase of any UK city in that same year, ranking joint 9th with Cambridge. While house prices are likely to slow, the Bristol market remains relatively robust thanks to strong rental demand from students and young professionals.
Why are House Prices so High in Bristol?
Bristol’s high house prices are down to a few factors. The main contributor is supply and demand. Ranked one of the top places to live in the UK, Bristol is a highly desirable city with strong quality of life. This has led to a growing population and popularity, which drives up property prices.
Bristol is also home to two major universities which can increase demand for rental property and contribute to higher prices. If you’re considering the housing market Bristol, it’s good to know that many of these students stay on after university, adding to an already high demand for rental property.
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Bristol’slivability, employment opportunities and lifestyle offerings keep drawing in new residents. Bristol properties show slight signs of slowing down in terms of value in 2023, but not by much. The key for investors will be finding areas on the edge of gentrification. Properties for sale in Bristol in the “next-best area” to live will likely see a price leap in coming years. To find out more about property in Bristol, get in touch with our experts.