Like the proverbial “curate’s egg”, 2025 was another year that was “good in parts” for Bristol’s residential agents.

The city’s population continues to grow – up by slightly over 6,000 during 2025 – outstripping the supply of new homes. But, while sales have been good overall, as well as relatively consistent across the year, getting transactions through to completion continues to require patience. 

One helpful factor improving house affordability and stimulating demand has been some of the heat coming out of house prices: the ONS statistics from December 2025 show that the average house price for the city was £354,000, little changed from 2024. 

Private rents, meanwhile, are still outpacing inflation, driven by the longstanding lack of supply and exacerbated by a growing line of private landlords heading for the exit. According to the ONS, average rents climbed around 6% across the year, although agents report bigger increases in some local markets.

Conversely, rents continuing to rise make it increasingly attractive for those who can afford a deposit for their first home, stimulating churn in doing so.

Sales of lower priced homes have fared best, the “sweet spot” being between £350,000 and £450,000. This has put the focus on up-and-coming parts of the city, including parts of South Bristol, St George and Redfield.

Going forward

Looking forward into 2026, with The Bank of England on an avowed path of “slow and steady” cuts, there is optimism that cheaper mortgages will encourage more first-time buyers into the market.

With private landlords continuing to sell up, the prospect of rents cooling appears less likely. Several new BTR schemes in the city will help meet growing demand for rented accommodation, but viability issues here are constricting supply.

The notable exceptions include Grainger’s Glasshouse Square scheme in Redcliffe, which has delivered 468 apartments across three blocks, opening in December 2025. However, that could be the last scheme delivered for at least three years.

Positively, PLATFORM_ was granted planning permission for 352 units as part of the Frome Gateway Regeneration scheme, while The Iron Works in Temple Quarter secured planning for 452 apartments in December 2025.

New stock to sell is becoming an increasingly rare commodity: Bristol remains one of the most expensive places in the UK to build. That is exacerbated for taller developments following new “double core” safety requirements introduced as a result of the Grenfell disaster.

Alongside that, investment yields have moved out – despite the fact that Bristol sits in the top tier of regional markets in terms of demand.

Currently sitting in the pipeline is Temple Island, L&G’s planned £350m regeneration project, aimed at transforming a former diesel depot into a mixed-use district with 520 homes (40% affordable) along with other uses including offices, retail, a hotel and public spaces. Plans were submitted in early 2025, with a start date pencilled in for the end of 2026.

This is part of the wider Bristol Temple Quarter project, aiming ultimately to deliver 10,000 new homes, commercial space and improved connections. Muse have recently been announced as the preferred development partner.

That has put the focus on the suburbs, where lower density developments can offer better build cost certainty: there is plenty of developer activity and demand here, albeit for traditional housing schemes, with a number of new entrants also coming into the market.

One example is The Graphic Packaging site in Fishponds, which has approval for 252 homes at a major new housing project called Atlas Place.

Looking even further forward, YTL’s ambitious plans to develop up to 6,500 new homes over the coming couple of decades at Brabazon, as part of its new 400-acre mixed-use neighbourhood, will play a growing role in meeting housing demand in North Bristol.

2026 looks set to be an important year for the Bristol residential market, particularly in town… and hopefully a positive one.