The red-brick Victorian terraced houses of Bedminster have been revealed as Bristol’s best property investment over the past 20 years.
Analysis by commercial property specialist Colliers International of latest Land Registry figures for six mixed areas of the city has shown that average house prices in the south Bristol suburb have risen by 512% since 1997, rising from £50,339 to £307,979.
This compares to average price growth of 379% for Bristol during the past 20 years, according to house price data from July 1997 to August 2017. The average UK house price growth in that time was 273%.
During the same period, Bradley Stoke experienced house price growth of 507%; Knowle of 484%; Clifton of 388%; Bristol City Centre of 327% and St Paul’s of 299%.
Christopher Dawson, development director in the Bristol office of Colliers International, said: “If you were a buyer, your investment would perform best had you bought an average home in Bedminster in 1997, in terms of capital appreciation.
“However, it should be noted that there has been a considerable change in the average home within these areas with a higher proportion of recently built properties.
“Average prices also mask the shift in some locations from houses to apartments which may distort figures by bringing down average unit values.
“For example, in Clifton there has been a notable shift to smaller housing types with the proportion of detached and semi-detached house sales falling from 17% of the market in 1997 to 9% of the market in 2017 to date.”
Mr Dawson added that while house price growth in Bristol had been a positive experience for home owners, it had resulted in house prices in the city becoming considerably less affordable.
“In this context the push by Bristol’s Mayor, Marvin Rees, for increased affordable housing provision is very welcome,” he said.
“For those buying in Bristol in 1997, houses in the city cost around 3.6 times the UK average annual earnings. Now in 2017 house prices in Bristol are approaching 12 times the average annual earnings.
“One of the results of this is that build-to-rent - the practice of building purpose-built residential rental accommodation - has become an increasing attractive prospect to both developers and institutional investors in recent years.
“This is due to impressive prospects for capital growth and increasing security of income as more people are renting for longer in order to save up to get onto the property ladder.”
His development colleague, Andrew Frost, added that recent figures from Hometrack showed that house price growth was slowing in Bristol, but that this was unlikely to be equally spread across the city.
“We anticipate prime core locations and strong secondary locations to hold their value, with the greatest risk of a decline in growth in poor secondary and tertiary locations,” he said.
Property as Investment in Bristol 1997-2017
Analysis of Land Registry figures by Colliers International