There has been significant interest in private rental sector (PRS) investment in Bristol in recent years, but relatively little activity to date. The reasons for this are manifold: a strong private residential market, which has never been oversupplied; a lack of relative scale; the strength of other regional markets, especially in London and the South East, as alternative investment locations; and a relatively affluent local population have all kept PRS operators on the back foot in the city. 

However, Bristol is entering a new phase in its development and certain key factors are starting to change. The city has undoubtedly punched above its weight over the past decade. The successful fusion of branding, industrial mix and regeneration that has driven this outperformance is also what has sparked interest from PRS investors, as well as the positive perception of Bristol as a great place to live and work.

Bristol has become well recognised on the national and international stage, with the most recent accolades of ‘World’s Smartest City’ and  ‘Best Place to Live in Britain’ helping to cement an impressive reputation. Adding further value to the PRS offer are the planned infrastructure improvements in the city, such as Metrobus rapid transport network and railway electrification.

All of which is reflected in our own research team’s prediction of 27.5 per cent residential rental growth over the next five years – one of the highest rates of inflation nationally. 

Large schemes developed in competing cities give investors the ability to placemake a micro-location, creating cohesive and integrated communities with high-quality public realm and curated retail and leisure uses. Nothing of this scale has been available in Bristol. Now two separate purchase of sites close to Temple Meads in Bristol’s enterprise zone have thrown a spotlight on the wider regeneration of the Temple Quarter gateway. 

The most recently announced deal was described by the MD of Square Bay – the mixed-use developer which bought 10.6 acres between Silverthorne Lane and Feeder Road to the east of Temple Meads – as ‘a key piece of the jigsaw’ in relation to local regeneration that has the potential to unlock further investment. 

Alongside Bristol university’s purchase of an additional five acres next to its existing site, which will be home to its Temple Meads campus, the newly acquired sites have been coined ‘Bristol’s King’s Cross’ and is likely to be the biggest and most significant development in the city for at least a decade.   

Further information

Contact Savills Bristol