The Bristol buy-to-let bubble is about to burst according to one of the citys leading residential experts.
Richard Clarke, head of residential and development at GVA Grimley in the city, said signs indicate that opportunities for a quick profit from the buy-to-let sector will come to an end later this year.
House prices in Bristol have surged and figures recently released by the Council of Mortgage Lenders show that buy-to-let mortgages have risen by 60% over the last year.
Clarke said: “Rents in Bristol appear to have reached a plateau and the Royal Institution of Chartered Surveyors has just reported that residential rents have fallen nationally for the fifth successive quarter.”
Bristol centre had seen a surge of flats and apartments coming to the market and the stock of rented accommodation had risen dramatically, he said.
“In the Greater Bristol area it is a similar picture, with houses in areas like Bradley Stoke also creating strong demand.
“There is going to come a point where the market is saturated with properties to rent, and with the prospect of rising interest rates, the investment loses its appeal.
“Whilst the market in Bristol is still buoyant, investors should learn from Bath where rents have already begun to fall,” added Clarke.
EGi News 13/05/02
