Bristol Rental Market 2025

As we step into 2025, Bristol’s rental market is once again attracting attention. At The Letting Game, we view this as an opportunity to reflect on how we can contribute positively to a sector that is continually evolving.

 

 

What’s Driving Demand in Bristol?

Bristol remains one of the UK’s most desirable rental markets, attracting professionals, families, and students. The city’s unique culture, dynamic job market, and high quality of life make it a relocation magnet. Key factors contributing to this growing demand include:

We aim to ensure that both landlords and tenants enjoy a positive and enriching experience, no matter how the market shifts.

The Impact of the Renters’ Rights Bill

The Renters’ Rights Bill 2024-25 is set to reshape the lettings landscape, aiming to enhance tenant protections and promote fairness. As a landlord, understanding and adapting to these changes is essential for maintaining a competitive edge.

Key updates include:

On the 14th of January, the Bill reached an important milestone as it completed its report stage and third reading in the House of Commons. As mentioned above a significant amendment was approved, which will limit landlords to requesting only one month’s rent in advance, along with a security deposit of up to 5 to 6 weeks’ rent. The Bill now progresses to the House of Lords, where it will undergo further evaluation. You can see the current stage on the UK Parliament site.

Thriving in a Competitive Market

Bristol remains a vibrant investment opportunity. The city’s growing population and diverse economy position it as a prime location for property investment. To thrive in the Bristol rental market 2025, landlords need to stay informed, be adaptable, and consider strategies such as:

Looking Ahead with Purpose

Bristol’s rental market in 2025 presents both opportunities and challenges. At The Letting Game, we believe lettings are more than just transactions. We believe that by fostering meaningful relationships and staying ahead of market trends, creating thriving and sustainable communities.

For related information, read last months article “What will 2025 hold for Bristol landlords?”

What will 2025 hold for Bristol Landlords?

With 2024 coming to an end we look to 2025, a year that is likely to see significant change in the Bristol and wider UK rental market. To look at what is coming up we need to look at the wheels of change set in motion this year by Keir Starmer’s new government. 

 

 

Impacts of the The Autumn Budget on the Bristol rental market

On the 18th  of September, Rachel Reeves delivered the first labour budget in 14 years. A budget that needed to underpin the promises made during the election campaign and deal with the pressures on the public purse. Some of the biggest implications come from the need to raise taxes without touching the employees’ wage slips. Some of the biggest headlines for landlords include:- 

A rise in stamp duty for additional properties

As of 31st October 2024, the Stamp Duty Land Tax (SDLT) rate on additional properties, such as buy-to-lets, was raised from 3% to 5%. For Bristol landlords, this means higher upfront costs when purchasing rental properties, especially for those expanding portfolios. So as an example, buying a £200,000 property means stamp duty increases from £6,000 to £10,000. 

Capital Gains Tax Adjustments for Property Investors

While many anticipated a substantial increase, the rates on residential properties remain aligned with other assets. However, there are new rates that impact non-residential gains, with Capital Gains Tax rates rising to 18% for basic-rate taxpayers and 24% for higher-rate taxpayers. This alignment simplifies the CGT landscape but may still encourage landlords to be more cautious with portfolio sales, especially in high-growth property areas like Bristol, where selling a property could incur a more substantial tax.

Digital and Tax Compliance Commitments

Landlords with annual rental income exceeding £50,000 must transition to Making Tax Digital (MTD) for Income Tax by 2026, with thresholds extending to £30,000 by 2027. At The Letting Game, we are committed to supporting landlords through this digital transformation, ensuring tax reporting remains hassle-free.

Impacts of the Renters Rights Bill on the Bristol rental market

The new government’s Renters’ Rights Bill is set to reshape the rental landscape. Following rapid legislative progress, the bill is expected to gain Royal Assent and become law by Spring 2025. Key provisions include:

For a bit more information on these, read our article on the “Renters’ Rights Bill.”  

The Bristol market is still strong

Even though 2024 has been far more challenging than 2023 we still believe Bristol’s rental market is a good investment. Rents continue to grow and we aren’t expecting that to change as we move into 2025. At The Letting Game we are dedicated to making it easier for our landlords. With legislation like the Renters Rights Bill we’ll look at how we can make our landlords’ lives easier.  

If you are considering turning your property into a rental, or are looking for a new letting agent to partner with – then just drop us an e-mail.