The Chocolate Factory

Bristol is one of the fastest growing cities in the UK. Over the last Census period, its population increased from 428,200 to 472,400 – growth of 10.3%, exceeding both regional and national growth averages.

By 2040, the Council estimates that Bristol’s population will rise to more than 525,000 as the current pace of growth shows no signs of slowing. This creates an obvious problem of housing supply that will need to be addressed.

It has been estimated by planning and architecture practice Marrons that Bristol’s predicted 2040 population means that an additional 60,000 homes will need to be built in the city.

However, the latest draft Local Plan from the City Council includes plans for just 35,000 new homes in that time period – meaning that a major supply issue over the next 15 years is highly likely.

That is on top of the existing supply issues which are already pushing prices up. As of Q2 2024, Rightmove records the average property price in Bristol is 8% higher than the 2021 peak.

Rents are similarly affected by the housing shortage in Bristol. Research from the Living Rent Commission shows that rents are increasing 12.9% year-on-year in the city, which is serious growth. Bristol’s population growth and housing market offers everything that investors could ask for – high growth, low supply and construction rates that are not adequate to meet demand.