One of the most important things all buy to let investors need to look for is a location with a growing economy. In many ways, this is the foundation on which a successful property investment portfolio is built.
An economic boom leads to better, higher paying jobs in innovative fields that attract professionals, families and students from around the world. These people in turn become the next generation of workers, researchers, inventors – and renters.
If you think of the most established property investment markets in the UK – London, Manchester, Birmingham and others – these are all places where investment, research, development and regeneration have led to an economic growth .
All of these locations have developed the ideal conditions to attract people, and in turn for property investors to get involved and earn long-term returns with buy to let investments.
Bristol is a great example of the next wave of regional, city centre economic growth that is emerging across the UK.
With a wide base of industries, a strong and diverse talent pool, and economic growth prospects which are far higher than the UK as a whole, Bristol’s £15bn economy is already impressive. However, this is just the start.
Data from Avison Young shows that we can expect 8.9% economic growth in the next five years in Bristol – a rate far faster than the UK average.
Certain sectors such as communications (12.9%) and science and technology (10.6%) are projected to grow even faster between now and 2028.
According to Oxford Economics this will lead to job growth of 5.7% over the next five years which is higher than the national predicted job growth of 3.1% predicted growth over that period, with professional, scientific, and technical skills a key employment growth area.
Sarah-Jane Osborne, regional managing director for Bristol at Avison Young UK, said: “From its thriving science, technology, and digital industries to the projected growth of employment opportunities over the next five years, Bristol is a city with great potential and firm foundations for investment opportunities.
“With high-value sector strengths, a large development pipeline, and world-class research facilities attracting talent to the city, it’s encouraging to see its economy being steered by the knowledge industries – strengthening its proposition for investors and generating new employment opportunities for residents. As we move forward in 2024 and beyond, the importance of collaboration between the public and private sectors to create a prosperous and sustainable future for the city cannot be understated.”
Highlights include the advanced engineering and aerospace sector which is worth £2.7bn and employs 51,000 at companies including Airbus, GKN Aerospace, BAE Systems, Rolls-Royce, Leonardo Group, and Boeing.
Bristol is also a significant digital and technology cluster, with the sector accounting for 36% of the city’s high-growth businesses. More than 230 start-ups employing more than 10,000 people are based in Bristol alongside major players like Graphcore, OVO Energy and Vertical Aerospace.
Andy Blackmore, head of financial services at EY in the South West, said: “Bristol has built a name for itself as the UK’s ‘home of science, media and innovation’, and has both a wealth of locally-grown talent and the power to attract new skilled workers to the region. This new hub will bring together actuarial and finance SMEs to develop and innovate within financial services data analytics, design and engineering.”
If you are searching for property in Bristol, this is all good news. Economic growth in modern, high tech sectors is exactly what is needed to attract young professionals and students to the city.
The Chocolate Factory is the latest Bristol buy to let investment property to come on the market and it is raising the bar of quality in the city. Located in a leafy, suburban setting within easy reach of the city centre, it includes a gymnasium, café, bar and community room in addition to providing high spec luxury rental homes.
Want to invest in Bristol buy to let? Discover The Chocolate Factory today and get in touch with the team.
