The number of Bristol properties available to rent has halved in the last year, according to a new report from real estate firm JLL. The Big Six Residential Development Report found the number of homes available to let in the city was 52 per cent lower in July compared to a year earlier.
The reduction is being caused by a combination of strong tenant demand and development challenges restricting the delivery of new supply, the study found. Rents for new-build apartments in the city have increased by 2.5 per cent over the last 12 months in response to the lack of availability, above the national average of 1.8 per cent.
Rents to grow 3.7% a year
The report, which tracks Birmingham, Bristol, Edinburgh, Glasgow, Leeds and Manchester, found that with a relatively small build-to-rent pipeline across the city, rents in Bristol would likely grow by an average of 3.7 per cent a year up to 2030 - the second-highest figure recorded throughout the Big Six cities.
Tim Harris, head of the South West and Wales at JLL, said: “Bristol remains a popular place for people to live and work which is why there continues to be a high level of tenant demand within the regional residential market. At the same time there are long-standing challenges when it comes to bringing forward new developments which means the supply pipeline is unable to keep pace with demand.
“We anticipate this widening gap will only serve to increase the rate at which rental values continue to grow, meaning there will be significant opportunities out there for those who are able to bring new developments forward in the coming years.”
National rental market trends
Nationally, activity has increased across rental markets this year, with the usual seasonal rise in demand compounded by changing behaviour among tenants and prospective homebuyers, JLL said. The introduction of the first phases of the Renters’ Rights Act in May has contributed to greater movement across the rental market, with an increase in listings and more new lets agreed. Some landlords also looked to sell or change tenants in the run-up to its introduction.
Meanwhile, rising mortgage rates, higher stamp duty and moving costs, and wider affordability pressures are contributing to rental demand.
Meg Eglington, UK residential research associate at JLL, said: “Rental markets across our Big Six cities have become noticeably tighter over the past year. Tenant activity has been strong and available homes are being absorbed quickly, but so far that hasn't translated into significant rental growth because markets entered the year with relatively elevated levels of stock.
