House prices continue to surge in central Bristol
Sales and rental prices of Bristol city centre flats continue to surge despite high interest rates and inflation levels, according to research from global property advisor JLL.
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 and both domestic and international students as Bristol’s key drivers for its 5.3% increase in rental prices.
Sales prices in Bristol also recorded a 1.5% rise for the year, while prime one-bed flats in the city centre increased in price by 8.3%.
The increase in rents across all of the ‘big six’ demonstrates not only the demand for city centre living but also the need for more homes. This is not exclusive to the rental market, with a requirement for more homes of all tenures needed to address demand.
Nicholas Rumble, director of residential development in Bristol, said: “It’s clear for a few years now that Bristol is a victim of its own success. Great universities, a thriving business community and a buzzing nightlife scene make it one of the most attractive places to live in the UK. But until we address the need for more quality housing, there will be a ceiling on our success. Now’s the time to build and realise the economic potential on offer for Bristol.”
Marcus Dixon, director of UK residential research at JLL, said: “Make no bones about it, 2023 was a challenge for the UK housing market. Yet it continues to show structural resilience and the ability to handle the headwinds posed by high interest rates, inflation and wider economic certainty.
“We’ve entered the new year with more upbeat mood music surrounding the UK housing market. Early indicators suggest activity is increasing and the outlook from both buyers and among professionals is increasingly optimistic. The consensus on the direction of travel for the bank rate is improving, and a five-year fix has now fallen below 4% for those with bigger deposits.
“It won’t be plain sailing but while the UK’s city centres continue to be attractive places to live, work and study, its residential property market will go from strength to strength.”
