LISTEN: Bristol could become a victim of its own success if more houses and offices aren’t built, according to Savills.
Following the economic downturn, Savills says that Bristol has had the fastest-growing economy outside London, expanding by 19.2% between 2009 and 2014.
Since the changes made to permitted development rights in 2013, Bristol has seen the highest number of planning applications granted for office to home conversion.
Commercial values in Bristol have now been catching up with residential values, however, leading to a slowdown in office to residential conversions.
Bristol’s population is forecast to increase by 41,000 by 2025 with around 14,000 new office-based jobs created. This means up to 1.4m sq ft of new office space is required to accommodate workers.
The firm warns that at current take-up rates there is only one year’s worth of grade-A office space in the city centre before demand begins to outstrip supply.
Chris Meredith, director of office agency at Savills Bristol, says: “The strong demand for space, particularly from the TMT sector, has driven office rents for both new and refurbished space. Currently there is only one year’s worth of grade-A supply in market and Bristol needs further development in order to continue to attract new major occupiers.”
In addition, the wider Bristol area requires a minimum of 85,000 new homes by 2036 to match demand.
With an average of 3,000 homes currently being delivered a year in the wider Bristol area, this could lead to a shortfall of at least 1,234 homes annually.
Susan Emmett, director, Savills research, says: “Bristol is a great place to both live and work but it is at risk of becoming a victim of its own success, with prospective residents and business looking to locate elsewhere unless it rapidly develops more office space and homes to keep up with demand.”
• To send feedback, e-mail Shekha.Vyas@estatesgazette.com or tweet @shekhaV or @estatesgazette
