Bristol is experiencing the highest rental growth among the UK's regional cities, new research has found.
Rents in Bristol increased 12% between February 2020 and September 2021, with more than a quarter of Bristol's residents estimated to be privately renting, according to property firm JLL.
The build-to-rent (BTR) market is also booming, with developers in Bristol currently bringing forward 1,200 BTR homes, the report found, adding to the 800 already completed.
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.
Grainger is also forward funding Millwrights Place, a scheme being developed by Cubex that will provide 231 flats as part of Finzels Reach phase two, and the second phase of Redcliff Quarter, which includes 374 private rental 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, and Barings' £215m GDV Soapworks scheme, being developed by Socius in Old Market, which will create 243 BTR homes.
Nicholas Rumble, residential development director at JLL South West, said: "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."
Nationally, developers seeking value in the UK's regional markets have 20,000 BTR homes under construction and a further 30,000 with planning consent - eclipsing London's 30,000-strong pipeline of homes.
Investment in the UK's regional real estate reached a record £33.2bn in 2021, including an unprecedented £3.1bn invested in BTR, as investment also exceeded London for the first time - 69% up on the capital.
Louise Emmott, head of regional residential agency and development at JLL, added: "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."
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