Bristol rental growth tops UK regions as build-to-rent pipeline eclipses London – JLL

Published by

Peter Davison

Bristol is experiencing the highest rental growth among the UK's regional cities, as a pipeline of almost 50,000 build-to-rent (BTR) homes across the nation propels the government's Levelling Up agenda, according to new research from JLL.

Developers in the city are currently bringing forward 1,200 BTR homes, adding to the 800 already completed, the research shows.

Rents in Bristol increased 12 per cent between February 2020 and September 2021, with more than a quarter of Bristol's residents estimated to be privately renting - creating significant demand.

Hawkins & George was one of the first BTR projects delivered in Bristol. The two buildings are owned and managed by Grainger with all 194 homes let in three and a half months. Following the success of Hawkins & George, Grainger agreed to the forward funding of Millwrights Place, a scheme being developed by Cubex that will provide 231 flats as part of Finzels Reach phase two. Both schemes were project managed by JLL in Bristol.

More recently, Grainger announced it will forward fund the build to rent element of the second phase of Redcliff Quarter, which includes 374 private rental homes and 94 affordable homes.

Other notable BTR schemes in the city include Box Makers Yard, a 376-home scheme in the Temple Quarter area, developed by Legal & General.

Earlier this year, Barings bought the £215 million GDV Soapworks scheme, being developed by Socius in Old Market, which will create 243 BTR homes (pictured).

Nicholas Rumble, residential development director at JLL South West, said: "Known for being one of the most vibrant, sustainable, and culturally inclusive cities in the UK, there are a wealth of reasons why the fundamentals of the BTR market in Bristol remain strong.

"Bristol appeals to young professionals and families who are relocating from cities such as London. Due to this ongoing trend, Bristol's population growth is expected to exceed the national average over the next decade.

"At the start of this year, the South West accounted for just three per cent of the total BTR market compared with 13 per cent in the North West and 13 per cent in the Midlands.

However, given the ever-increasing development pipeline and robust rental market, Bristol represents an opportunity for investors to capitalise on."

Louise Emmott, head of regional residential agency and development at JLL, said: "The 10 largest regional cities are home to a combined population of 15.6 million compared with London's 9 million.

"With the Levelling Up agenda promising further devolution and radical policy to shift government resources to the regions, BTR will be intrinsically linked to successful regeneration focused on sustainable community investment.

"As investors turn their attention to ‘safer' sectors in the wake of the turbulence created by the pandemic, appetite for living assets is soaring and the regions offer opportunities for scale.

"It's with this in mind that regional investment has hit its highest levels since 2014 and why we anticipate 2022 being another record year, as local authorities seek to improve their housing provision through brownfield-first strategies that support city centre BTR development."

Peter Davison

Peter Davison is deputy editor of The Business Magazine. He has spent his life in journalism – doing work experience in newsrooms in and around Bristol while still at school, and landing his first job on a local newspaper aged 19. By 28 he was the youngest newspaper editor in the country. An early advocate of online news, he spent the first years of the 2000s telling his bosses that the internet posed both the biggest opportunity and greatest threat to the newspaper industry and the art of journalism. He was right on both counts. Since 2006 he has enjoyed a career as a freelance journalist. He lives in rural Wiltshire with one wife, two children, and three cats.