Bristol’s rental market robust despite backdrop

Bristol’s prime city centre rental market has continued to perform strongly despite a challenging political and economic backdrop, according to research from global property advisor JLL.

Its ‘Big Six’ research, which tracks residential development activity, prices and rents across Bristol, Birmingham, Manchester, Leeds, Edinburgh and Glasgow, shows that rents of prime apartments have risen 12.1% on average this year.

The business attributes it primarily to Grainger’s latest build to rent scheme, Millwrights Place, coming to market at the beginning of the year. The average rent of a prime new build one-bed apartment has risen 10.3% over the past year, while two- and three-bed apartments have risen 10.8% and 14% respectively.

Sales have risen in value by 1% over the past year and 9.8% since 2021.

Nationally the research showed that annual sales have grown by 1.9% over the past year, though a shift to more affordable markets was noted.

Demand for rental properties across the six cities has also remained robust, driven by young professionals seeking the lifestyle benefits of city centre living.

Even so, JLL’s research shows the rental market has become more balanced this year. Annual growth, which had soared to double-digit highs in H1 2023, now averages 6.6% across the ‘Big Six’ cities.

Tim Harris, head of the South West at JLL, said: “Bristol continues to show its value to investors, buyers and renters. But its long-held challenge of demand far outstripping supply will continue to stifle the city from reaching its full economic potential until remedied.

“There’s now positivity among the city’s real estate community that a mix of stable politics, reforms to the planning system and a continued fall in interest rates will provide fertile ground for the Bristol property market to build on in the final few months of the year and beyond.”