Bristol Build to Rent makes compelling investment case

Analysis from BNP Paribas Real Estate shows that Bristol Build to Rent makes a compelling investment case with robust 2022 outlook.

Bristol skyline facing Southeast, a city making a compelling BTR investment case - BNP Paribas Real Estate | BTR News
Bristol skyline facing Southeast.

A number of Build to Rent schemes are underway in the city of Bristol, making it a compelling case for investor. BNP Paribas Real Estate analysis shows there are c.800 completed Build to Rent units in the city – with another c.2000 in the pipeline, most of which are expected to complete by 2024.

Q3 insights show that the demographics support the growth in Build to Rent in the city. The population of Bristol is expected to grow 5.9% over the next ten years (compared to 4.2% in England). The 25 to 44 years cohort is expected to grow well above the national average at 6.1%, compared to -1.3% in England, over same period.

There is also a higher than average proportion – 20.8% – of households in the private rented sector, whilst home ownership is below the national average, at 58.8%. Housing affordability in Bristol has impacted on home ownership levels. Data from the Office of National Statistics shows that average house prices are at £280,000 – above the national average, and similarly, the ratio of house prices to earnings in Bristol is also greater than the average for England, at 8.59.

“Bristol has a wonderful sense of identity, one of the key factors that makes it such an attractive place to both live and work. The city and surrounding areas is one of the UK cultural and innovation hotspots, and this is translating into an increasingly attractive Build to Rent proposition.

“Industries are thriving, the population in booming at a rate above the UK average, and wages are highly competitive. Even the pipeline of Build to Rent will not be sufficient to satiate the thirst of market demand where more than a fifth of households rent. All signs point to Bristol as the city that should be top of investor’s watchlist for opportunities going into 2022.”

Joshua Gunn, Head of Bristol Office, BNP Paribas Real Estate

Bristol is one of the most populous cities in England, home to two universities and has a rich history. It also has strong transport links to London and its own airport. The city is home to a number of industry clusters including creative and digital, and the fintech sector, as well as having a strong professional and financial services presence too.

“The rise in the Build to Rent sector outside of London continues to be in the spotlight for investors who are keen to identify new opportunities in and around regional cities.  Bristol certainly makes an interesting proposition for those investors, where the fundamentals of strong demand and short supply are underpinning sector growth. The city also benefits from its reputation as vibrant, aspirational, and with a fierce sense of community. Post pandemic, people are reassessing their priorities and the ability of Bristol to deliver on career ambitions and work/life balance is huge upside factor.”

Rebecca Shafran, Alternative Markets Research Associate Director, BNP Paribas Real Estate