News / Society
Bristol’s strong recovery threatened by rising house prices
A new report published by think tank Resolution Foundation reveals that the West of England’s strong recovery since the economic crisis could be threatened by Bristol’s rising rents and house prices.
The city region encompassing Bristol, Bath & North East Somerset and South Gloucestershire saw an economic recovery second only to London, with a 26 per cent higher economic output than the average city.
While most major UK cities have not yet recovered to pre-crisis levels, the West of England stands at seven per cent above its pre-crisis apex.
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The Resolution Foundation study attributes these facts to the high levels of employment shown in this region; 76.8 per cent higher than most other areas of the UK.
The report notes that average housing costs across the area are at around 10 times the average annual salary, and between 2011 and 2016 the average rent increased by some £100 a month, 14 per cent faster than in comparison to other UK cities.
For private renters in this area this means spending an average of 41 per cent of their annual pay on rent.
Most of the growth and success is spread across the region, but areas such as Hartcliffe and Lawrence Hill – where almost half of the residents are unemployed – show that the regional picture is not all rosy.
Resolution Foundation policy analyst Conor D’Arcy urges the future West of England metro mayor to take control.
He said: “The new mayor could make the West of England Britain’s first full employment city. To achieve this the mayor should target support at those who have missed out on the area’s recent job miracle, such as single parents and those living in less connected and deprived areas.
D’Arcy added: “Tackling the area’s growing housing crisis by building more homes will be key to ensuring people are able to keep more of their hard-earned wages, rather than just handing their pay rises over in higher rent or mortgage costs.”
Bristol mayor Marvin Rees said that the report recognises that the West of England is in good economic health but it is “no reason to be complacent”.
He said: “The challenges it highlights around housing and employment are in our sights. Building new and affordable homes and wage improvements are high priorities for us.
“We want Bristol to be economically successful and ensure everyone shares in that prosperity. I look forward to working with the new West of England mayor and my colleagues in South Gloucestershire and Bath & North East Somerset to build on this economic success and make sure no-one is left behind.”
Photo credit: Destination Bristol
Read more: Bristol is gentrifying faster than any UK city outside London
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