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House prices to rise faster than UK average
New research by JLL predicts that Bristol house prices are expected to rise faster than UK average over the next five years.
JLL anticipates that Bristol will experience an average year on year price rise of 3.9 per cent between 2017 and 2021, compared with 2.5 per cent for the rest of the UK. The real estate consultancy is forecasting a 5 per cent increase from 2016-17, slowing to 4 per cent in 2018, 3 pre cent in 2019, 3.5 per cent in 2020 and 4 per cent in 2021.
It’s a similar picture for rental forecasts, with prices expected to go up by a yearly average of 3.8 per cent over the next five years in Bristol compared with a national figure of 3.3 per cent.
James Petherick, director of residential development at JLL in Bristol, said: “Bristol boasts one of the most active housing markets in the country. The city centre has really taken off and developers have so far risen to the challenge with some excellent schemes built and underway.”
“With appetite already high and with Bristol graduates choosing to remain in the city in increasing numbers, demand for city centre housing looks set to grow.
“We expect the key centres of Bristol and Exeter to outperform the rest of the South West in terms of house price and rental growth although Brexit will cast some doubts over longer term prospects.”
The strong housing market in the city is supported by a robust regional economy with employment in Bristol expected to grow well above the South West average. Employment growth in Bristol is forecast to be 3.9 per cent during the next five years which equates to around 7,000 new jobs, compared with regional growth of 0.9 per cent.
However, JLL does warn that region, like the country as a whole, is building new homes at a much slower rate than projected.
“Bristol has a task on its hands to deliver the housing that the growing population needs,” James added. “New Government policies will help to some extent, as well as the Mayor’s drive for taller buildings, but we anticipate the housing market supply issues will continue for some time.”
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