Bristol and North Somerset Lettings Market and Rental Yields
Overall, Bristol's rental market in 2025 is characterised by rising rents, stable yields, and strong tenant demand, particularly in central and affordable areas.
Rental Prices
Average Monthly Rent as of Q1 2025, the average monthly rent in Bristol is approximately £1,754 1 2. This represents a 6.7% year-on-year increase.
High Demand Areas such as Central areas like Redcliffe, Southville, and Clifton are experiencing the highest tenant competition, particularly for 1- and 2-bedroom furnished flats.
Rental Yields
Gross Yields - Gross rental yields across Bristol average between 4.5% and 5.5%.
Gross rental yields (annual rent as a percentage of property price) vary by area, generally inversely related to house prices.
In the BS8 (Clifton) postcode – where values are highest – yields are tight, around 3% on average. In the more moderately priced North Bristol suburbs (e.g. BS7), typical yields are closer to 4%.
South-of-river districts like BS3 and BS4 can achieve around 4–5% yields, reflecting their lower entry prices and solid rent levels. Notably, properties in student-heavy or HMO markets (e.g. parts of BS6 around Cotham/Redland) may see even higher yields (5–7% gross) due to multiple tenants sharing.
In North Somerset, Portishead (BS20) offers yields roughly in the 4–5% range (family homes renting for £1,300+ PCM against purchase prices in the £300k’s), whereas Clevedon (BS21), with higher average prices, sees closer to 3–4% yields.
Some of the strongest performance areas such as Easton, St. George, and Bedminster are showing the strongest income performance due to tenant affordability constraints in more expensive north and west Bristol postcodes.
Market Trends
Price Stability - Despite national economic volatility, Bristol's rental market remains stable, supported by strong local employment, limited housing supply, and ongoing urban development projects.
National view point
Rental market conditions are steadily improving after 3 years of chronic undersupply and excess demand. There remains a mismatch in supply and demand, which is not going to rebalance anytime soon, meaning a continued upward pressure on rents.
Rents are increasing at their lowest rate for 3.5 years. However, this has more to do with worsening rental affordability than an improvement in the supply of homes for rent.
Rents have risen 3% in the last year, the slowest rate of growth seen in 3.5 years. (Zoopla)
Demand
