Why Bristol Landlords Are Staying in the Rental Market

Are landlords leaving the rental market in droves, as some experts claim? Or are reports of an exodus overblown?

Let’s look beyond the hype to uncover the truth and why many landlords, particularly in Bristol, are choosing to stay in the game.

You may have come across headlines proclaiming that landlords are fleeing the rental sector. While it’s true that some landlords have opted to sell, the overall picture is far more nuanced.

Recent data from UK Finance shows that the number of outstanding buy-to-let (BTL) mortgages fell from 2.039 million in the first quarter of 2023 to 1.98 million in 2024.

This represents a modest contraction in the BTL market. Moreover, Zoopla reported that one in eight properties for sale in July 2024 had previously been rental properties.

However, 40% of these homes are expected to be purchased by other landlords, keeping them within the rental sector.

So, while there is some movement, it hardly qualifies as the mass exodus some reports suggest.

The other side of the coin

For every landlord choosing to leave, a large number are standing firm.

What’s keeping them invested in the rental market, particularly in Bristol, where the property scene remains buoyant?

A recent survey conducted by Paragon Bank sheds light on why smaller landlords—those with one to three properties—are holding on to their investments.

Here are the top five reasons they’ve decided to stay :

Strong Tenant Demand
- A significant 60% of landlords cited strong tenant demand as a major reason for staying in the market.
- This is particularly relevant in Bristol, where demand for rental properties remains robust. Areas like Clifton, Redland, and Southville are especially attractive due to their proximity to the city centre, local amenities, and universities.
- For landlords in these neighbourhoods, tenant demand often exceeds supply, making it a landlord’s market.
- If you’re a landlord considering the opportunities available in the area, exploring the tenant demand in Bristol can provide valuable insights into where to focus your efforts.Even as some landlords sell, the continued tenant demand ensures rental properties remain profitable. This creates an opportunity for those who stay in the market to increase their rental yields.
Retirement Income
- 54% of landlords see buy-to-let as a reliable way to secure income in retirement. In an uncertain economic climate, property remains a tangible and reliable asset.
- Bristol’s property market, which has seen steady price growth, offers landlords the potential for both long-term capital appreciation and regular rental income.
- For example, property prices in Bristol have consistently risen, particularly in areas like Harbourside and Montpelier, providing landlords with a solid return on investment. This makes buy-to-let properties a strong part of a retirement strategy, offering both passive income and capital gains.
Property Price Growth
- 47% of landlords point to rising property prices as a key reason for staying in the market. UK property values have risen by 73% over the past ten years, and Bristol has seen impressive growth as well. In neighbourhoods like Cotham and Bishopston, property values have increased steadily, creating significant equity for landlords.
- For landlords who entered the market years ago, the continued rise in property values makes selling less attractive. Many are opting to hold onto their properties and benefit from future price growth and rental income opportunities in Bristol, making it a profitable long-term investment.
Building a Portfolio
- 40% of landlords are staying in the market because they aim to build wealth and financial stability through property investments. Expanding a property portfolio remains a popular strategy for landlords in Bristol, where rental yields and long-term capital growth are attractive prospects.
- With its growing population, student base, and ongoing development projects, Bristol offers opportunities for landlords to add to their portfolios in up-and-coming areas like Totterdown and Easton.
- For landlords keen on growth, building a property portfolio in Bristol provides long-term financial security, with the potential for consistent rental income and future property appreciation.
Preference for Tangible Assets
- 34% of landlords prefer the security of property investments over other, more volatile asset classes like stocks or shares. For many, property is a tangible asset that not only grows in value but also generates income. With the uncertainty in global financial markets, owning property in Bristol, where demand remains high, feels like a safe bet for long-term wealth building.

What does the future hold for you?

While some landlords may be opting to sell, many others see continued value in the buy-to-let market. In cities like Bristol, where the rental market remains strong and property prices continue to rise, there are plenty of reasons for landlords to remain confident.

If you’re weighing your options—whether to stay in the market, expand your portfolio, or sell up—it’s essential to have a clear understanding of the potential risks and rewards. That’s where expert advice can make all the difference.

How We Can Help

At Sarah Clarke Property Consultants, we specialise in helping landlords like you navigate the complex rental market. Whether you’re looking to review your current portfolio, explore tax strategies, or learn more about the Bristol property market, our team is here to provide expert guidance.

Why Many Landlords Are Ignoring the Doomsayers and Staying in the Rental Market