Bristol Houses – Buying and Renting

Bristol house prices started falling in 2008 and have fallen significantly since that date but one only suffers a loss on the property if you sell it. For the Bristol house buyer it is only good news if one has the deposit for a mortgage together with the necessary  income multiples. The last house price crash was back in 1989 when over a ten year period house prices fell by 20% or more, whereas up until the end of 2007 house prices rose significantly but with this period of retraction from 2008 prices are still well above 1989-2000 levels.

In the UK property ownership is very important, unlike the rest of Europe where renting is considered the norm. We like to congratulate ourselves on being shrewd when the value of our homes rise but dismiss a fall in value with the remark “I bought it as a home not an investment”. Bristol house prices will always fluctuate and there will always be boom and bust in a recurring manner. Basically house prices stay stagnant for several years allowing incomes to catch up with property values; hence more properties come onto the market as people move upmarket resulting in more properties being released for first time buyers. Banks and building societies need to lend money and have to compete with each other with better rates and earnings multiples and loan to value. This is where we start to see 100% and 110% mortgages being offered and despite the collapse of the banking world it will be no different in the next boom since Banks and Building Societies compete for our mortgages. So the boom and bust economy continues with house prices continuing to rise and fall into the future. The only way this could be curtailed is for the government to lay down legislation on income multiples and loan-to-value amounts.

Buying a Bristol house or apartment for the first time is probably one, if not the largest, purchase you will make in your life although amazingly many people jump into this major decision either totally unprepared or certainly a little naively. Buying a house in Bristol or anywhere else for that matter should follow a certain procedure which starts, not with finding a house, but with the help of a Bristol mortgage broker, your local Bristol bank or other financial institutions.   They will discuss with you the type of mortgage which will best suit you, including your income and how best to use it, or if you have a partner, you and your partner’s income can be used (this is called an income multiple). They will also advise what type of repayment method would suit you either interest only or repayment. This choice depends on whether you anticipate moving again since an “interest only” mortgage requires you to repay only interest on the amount  borrowed. When you move the total sum borrowed is then repayable plus any extra fees whereas a repayment mortgage repays interest and capital to the lender, albeit in the early years this will be a relatively small amount. Therefore if a move is anticipated in the early years maybe an “interest only” mortgage with your own repayment vehicle, such as an ISA which can be attached to a mortgage, may be better.  Your lender will advise you but remember however it is not mandatory to accept their products so look around for the best rate for your repayment vehicle.

An alternative way to purchase a house or flat in Bristol is with shared ownership, either with friends and family, Bristol housing associations or a Home buy Agent. All these alternatives have pros and cons especially buying with friends and family which makes it doubly important to take full legal advice. By clicking on the link above you can find out more about shared ownership.

Where to buy in Bristol? There is so much to consider when buying in Bristol, such as schools, transport, amenities, parking, security, prices and ambience. Bristol houses for sale in Totterdown will be less expensive than houses for sale in Clifton and flats for sale in Easton will be much less than flats for sale in Sneyd Park overlooking The Downs. There are also beautiful rural areas near to Bristol such as the Chew Valley and Blagdon but access to public transport and other amenities in these areas is more limited. Size of property is important and for example, a young couple starting a new family who do not wish to keep moving, a reasonably large house with 3-4 bedrooms is a must so with a limited budget one of the modern suburban housing developments would be ideal. These offer good size modern properties with ensuite facilities, garage and garden, good public transport links, schools, sports and community centres fit the bill. Those with grown up children maybe a move out of Bristol into the country is the dream with plenty of space and privacy alternatively whereas one may want to be in the thick of it with village life in Clifton Village but finding a parking space could drive you mad. Wherever you wish to live and whatever style of house or flat you require you will be spoilt for choice in and around Bristol.

There are a couple of options available when buying a house in Bristol. One can either use the plethora of Bristol estate agents numbering over 125 at the last count where one can surf the web looking through the agents Bristol property listings. When an interesting property appears call the agent for details or make an appointment to visit the property. Eventually when you find the house of your dreams make an offer, haggle, then instruct the agent that you wish to purchase, inform your solicitor and sit back and wait for things to happen. That is of course if you don’t have a property that is being sold or is for sale, then the whole affair becomes totally stressful and tense -  will your sale go through? Will the chain collapse? Will they pull out at the last moment? Will you be gazumped? Will the survey be OK on both properties? The nightmare continues until the day contracts are exchanged and all parties take a deep breath and think about the move which usually occurs 4 – 6 weeks later. Have you booked your Bristol Home Moving Service?

Another option which only really applies if you do not have a property to sell and have cash available or a mortgage arranged is Buying your house at a Bristol Auction. It can be a great way to bag a bargain or buy a bundle of trouble but either way you can, with a methodical plan, professional help and plenty of common sense save up to 35% or more on your Bristol house purchase. Follow the Activ Bristol Tips when buying your house at a Bristol Auction and take care.

Finally we arrive at renting in Bristol which is far more common these days due to the difficulty in buying for younger people and the problems associated with raising a mortgage and the deposit required. There is plenty of property available to rent in Bristol but with a large student population the cheaper end of the rental market is very competitive for the potential tenant.  The advantage in Bristol is the volume of Bristol Property letting agents and although some specialise only in Student rental accommodation there are plenty of agencies left for the rest of the population. Bristol has regenerated the waterside area of Bristol over recent years and the array of Bristol harbourside properties is fantastic offering a two bedroom ensuite apartment with views at a rental of just under £1000  making living and working in Bristol a pleasure. Should you prefer something more rural then take a trip out to the Chew Valley where a two bedroom cottage will cost you approximately the same.

Due to the high demand for rental properties combined with the difficulty in obtaining a mortgage landlords are taking advantage of the supply and demand by increasing rents. However, it is the same as the rest of the housing market - when money eases and houses start to sell once more demand for rentals will decrease and rents will decline.

Bristol City Council offers a scheme to help landlords acquire good tenants through them offering financial incentives and guarantees to help house the less fortunate and those struggling to find suitable accommodation, so landlords read this.

Always when renting it is imperative to sign a lease since it protects both you and the landlord. If you are not sure about the lease being offered have it checked by your solicitor or by Citizens advice. Make sure all the electrical appliances are checked every year and check the inventory carefully since  the landlord may not have checked it when the last tenant moved out but could hold you liable for any discrepancies discovered when you move out.

Whether buying or selling a house in Bristol or renting an apartment on the harbourside Bristol is a fantastic city with more festivals and events going on than any other city apart from London which makes it a great place to live if you are a student, office worker, tradesman or family with children.