West Country city that is bucking house price trend

Many estate agents were happy to see the back of 2023 yet one area defying the gloomy market towards the end of the year was Bristol.

“There are a lot of first-time buyers in Bristol with steady jobs in the public sector,” says Robert Nagle of Leese & Nagle. “After holding back during the uncertainty they now don’t want to wait.”

Although much slower than last year, Bristol’s market is bucking the UK downturn. The city and county (Bristol is classified as both) includes four of the 10 hottest postcode districts too: BS3, BS5, BS6 and BS7. Recently named by Time Out as its top place to visit in the UK in 2024, Bristol has a vibrant arts, music and nightlife scene that helps give it one of the highest graduate retention rates in the country, but what else is fuelling the property market?

The number of Londoners moving to Bristol has dropped, and is around 4.8pc of buyers in Bristol, according to the estate agent Hamptons, but underlying demand for homes is strong employment opportunities across education, research, engineering and financial services, a thriving start- up scene and the highest international migration for two decades – especially from non-EU countries.

George Cardale, the head of new homes at Savills, says there’s strong interest from China and Hong Kong. “Overall, 2023 has been a challenging year, but we are still seeing demand from three key groups: first- time buyers, downsizers and upsizers.” So where to buy?

For first-time buyers, the “hot” BS3 postcode includes Bedminster and Southville, two popular areas.

Bedminster, a former industrial suburb now turned art district to the south draws both young professionals and families. The average price of a terraced house sold in the past year was £432,606, according to Zoopla.

New one-bed flats at the Factory No.1 development cost from £250,000.

A big regeneration project, Bedminster Green – on former factory sites around East Street, the area’s historic but ailing high street and St Catherine’s Place shopping centre – has 2,273 homes in planning. Easton, the city’s “coolest” neighbourhood according to Time Out, in BS5 is another magnet for young.

Higher mortgage rates, however, have hit those stretching themselves the most, meaning it is often those looking to upsize to a larger house who have seen what they can afford to pay fall furthest. BS6’s Cotham, Redland and Montpellier are popular for proximity to the centre, trendy Clifton Village and the green lung of Clifton Down, Gloucester Road eateries and good schools – Cotham School is a wellrespected secondary that attracts children from Clifton who do not go private.

A little further out of the centre, Henleaze and Westbury- on-Trym remain popular with families for their villagey feel and sense of community, says Nagle. “You can find a three-bedroom semi for around £600,000; a four-bed for £700,000 upwards.”

Charlotte Strang, who sources properties for investments, student landlords and lets to professionals, says that the local buy-to-let market is not dead. “For flats, I would recommend investing in a two-bedroom property with some sort of outdoor space like a balcony,” she says. “These tend to rent better than one- bedroom flats. They’re also a safe investment for selling on. Many tenants like to use the second bedroom as an office.”

She says Bristol harbour’s Finzels Reach, Horizon (Cabot Circus) and Everard’s Printworks are schemes where initial yields of around 5pc can be achieved for the BTL investor. For student lets, Ashley Down area is popular for its proximity to the University of the West of England and Bristol University.

Investment opportunities include the Temple Quarter area, surrounding Bristol Temple Meads Station, considered to be one of the UK’s largest urban regeneration projects. Another one to watch is Bristol Zoo – there are plans for 196 new homes.

New residential neighbourhoods slightly further outside the city include the Brabazon development in Filton, which will benefit from a new railway station linking with Temple Meads Station, in under 15 minutes.

Prices start from £ 194,000 for a one- bedroom flat, through Savills. Chinese and Hong Kong buyers especially prize Filton’s easy access via the M4 and M5, and proximity to Bristol airport.

Among downsizers, the prime neighbourhoods of north Bristol, particularly Clifton, Sneyd Park, Redland Hill and Westbury Park are often sought-after for their community feel and direct access to the shops and eateries of Clifton Village and Whiteladies Road.

“But a lack of smaller properties in these neighbourhoods means there is still competition for the classic period properties,” says Nigel Bishop of Recoco Property Search. You can pay £495,000 for a two-bedroom apartment in Clifton Village – Knight Frank is selling one with a balcony [ see below]; or Savills is selling one in a landmark building for £850,000.

Many downsizers prefer the hassle-free new-builds, especially around the vibrant Harbourside area. New waterside developments such as McArthur’s Yard (flats from £313,000) have been attracting downsizers, BTL investors and first- time buyers, according to George Cardale.

Liz Rowlinson