House prices in Bristol city centre – the BS1 postcode – have jumped by a whopping 128 per cent since 2010, and grew 18 per cent faster than the regional average
The figures are part of research just released by Hamptons estate agent, which also puts the average house price in central Bristol postcodes at £340,800, which is way above the Bristol and South Gloucestershire average of just over £250,000.
The Hamptons report explains: “Bristol is the economic capital of the South West and, since 2009, has had the second fastest growing local economy in the UK, outpaced only by London.
“Much of this growth has translated into rising house prices, with the average home costing 50 per cent more than it did in 2010. House price increases in Bristol have outpaced most other cities, but this means more people are having to look at more affordable areas, increasingly outside Bristol.
“The average home in Bristol postcodes BS1 to BS9 now costs £340,800, with prices up eight per cent in the last year. [This figure is based on Land Registry price paid data over the past year to May 2016 and comprises 1,500 transactions. The figure for the same time period in 2015 was £315k].
“As Bristol’s economy has grown, a lack of supply against growing demand has led to prices growing 18 per cent faster than the South West average.”
New homes in Bristol
The report concludes that the redevelopment of the harbourside areas, and the fact that 10,000 new homes have been built in the city since 2007 has much to do with the hike in prices. It continues: “As a port city, the waterfront has played a big part in Bristol’s maritime history and is now the focus of substantial redevelopment. Premium new-build developments here have broken barriers, selling for prices not seen in the city before.
The former general hospital is now up-market flats
“The nature of the new homes market has also contributed to increasing average prices, too. The average price of a new-build home was 27 per cent higher than last year and carries a £30k premium over second-hand properties.
“But it isn’t only Bristol’s most expensive markets that are thriving. Areas like Bedminster, Knowle, Filton and Southville have seen increasing demand drive price growth as young professionals priced out of the city centre seek more affordable areas.
“Reasonably priced Victorian and Edwardian houses are in high demand from first-time buyers and second movers alike. In BS3, which includes Bedminster and Southville, 38 per cent of properties sold achieved over their asking price in the last year, compared to the Bristol average of 18 per cent. Typically it has been smaller homes which have been achieving most above their asking price.”
Hamptons also looked at Bristol’s rental market, where prices are also flying. The report says: “Bristol has a large rental market, with 40 per cent of the population living in a home they don’t own. Affordability issues are driving the growth of the rental sector, as the number of young professionals unable to afford to buy their own home rises.
“Low stock levels and high demand have put pressure on the cost of renting over the last two years, with average rents increasing 11 per cent in the last year.
“The number of homes to rent in the first quarter of 2016 was three per cent lower than in the same period last year, and there are signs they will fall further. Following the new three per cent additional stamp duty introduced for second homeowners, which came into effect on April 1, stock levels are down 24 per cent on the same time last year.
“With less choice available, tenants are likely to find themselves competing with each other and in some cases, having to offer well above asking price on the most sought after properties.”