Bristol Named Top Property Investment Hotspot in South West England

Bristol has been named the best location in the South West of England for buy-to-let property investors, according to a new study. The research, conducted by property investment firm ERE, analysed 310 local authorities across England and Wales to determine the most attractive areas for landlords.

The index considered several factors, including average property prices, annual rental yield, five-year price growth, the proportion of private renters, and average monthly rents. Bristol emerged as the top performer in the West Country, boasting an annual rental return of 6.5 percent, the second-highest in the entire country after Newcastle upon Tyne. The average property price in Bristol now stands at £346,796, with 26.2 percent of households renting privately.

Nationally, Bristol ranked 14th among the best-performing local authorities. Following Bristol in the regional list were Plymouth, with an average property price of £217,671 and the strongest five-year price growth in the South West top 10 at 24.8 percent. Gloucester came third with an average price of £238,506 and a 5.5 percent annual return. Exeter placed fourth, with the second-highest private rented sector share in the regional top five at 24.9 percent, while Bath and North East Somerset rounded out the top five.

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Helen Mercer-Jones, managing director at ERE Property, commented: "London is no longer the default choice for the modern landlord. With only one London borough even making the top 50, our research highlights a massive geographic pivot in the UK property market. For those seeking returns above six percent or seven percent, the smart money is moving North to cities that offer both lower barriers to entry and a much higher ceiling for rental growth."

At the other end of the regional table, South Hams in Devon ranked last among the South West's 25 local authorities, with an annual return of just 3.46 percent on an average property price of £345,188. East Devon, Forest of Dean, Cotswold, and Stroud completed the bottom five in the region.

Across the wider UK index, the strongest performers were concentrated in the north of England, with seven of the top 10 areas located in the North West or North East. Manchester took first place nationally with an annual return of 6.4 percent and a property price below the UK average. Newcastle upon Tyne was ranked second, and was the only local authority in the country to deliver an annual return above seven percent. Blackpool came third with the cheapest average property price among the top 10 at £136,609.

Only one London borough, Newham at 38th place, made the top 50, while Kensington and Chelsea finished last among all 310 areas, with the highest average property price in the country and a price tag that has fallen by 10.5 percent over the past five years.