• Swindon & Wiltshire Economy
• Tuesday October 13 2026

Housing costs are Bristol’s ‘biggest threat’ to growth, city leaders warn

Bristol must solve its housing affordability crisis or risk losing the talent, investment, and cultural edge that underpin its economy, placemaking leaders have warned.

Dr Anna Farthing, cultural placemaking consultant and former Interim Head of Place at Bristol BID, said the cost of renting or buying a home is now the biggest factor affecting the city’s ability to attract and retain skilled people.

Speaking at a Knights thought-leadership breakfast at M Shed, attended by more than 100 business leaders, she said: “The cost of housing in Bristol, whether to rent or purchase, is the factor that most affects the city’s ability to attract and retain people with the talent and skills required for the city to flourish.

“Graduates, key workers, social entrepreneurs, creative and cultural industry workers, and new entrants to many sectors are now able to find more affordable accommodation in other cities, including London.

“And cities such as Leeds, Sheffield and Nottingham now rival Bristol’s cultural offer. Losing that competitive edge of attractiveness is the city’s biggest threat.”

Anna urged leaders to abandon approaches that are no longer delivering and trial new development models. She said large schemes are vulnerable to economic and political cycles, and called for more meanwhile uses in existing buildings to be made permanent where they prove successful.

She added: “If the established ways of doing things are not working, try something else. Bristol, with its deep history of non-conformism and social justice, is a natural place to explore innovative models.”

Alex Hearn, Director of Economy of Place at Bristol City Council, said development had become significantly harder because of higher construction and borrowing costs, regulatory change and viability pressures.

He called for a joined-up regional response to create a “credible pipeline” of housing and regeneration opportunities across the West of England.

“Bristol remains one of the UK’s most attractive cities for investment, with world-class universities, innovative businesses, a vibrant cultural sector and a quality of life that attracts talented people,” he said.

“We need to keep investing in the homes, transport links and employment space that allow the city to grow, while tackling affordability.

“If we fail to create that capacity, the pressures that come with Bristol’s success risk undermining the qualities that attract people and investment in the first place.”

Alex said heritage should not be treated as an obstacle to growth, but as part of the city’s future, with communities involved early in regeneration plans.

Nick Sturge MBE, Co-Chair of the West of England Business Board, said Bristol must work more strategically across political boundaries, including with Cardiff, Bridgwater and Cheltenham.

He said housing, transport and education all needed to work together to secure a diverse talent supply, while warning that heritage protection must not obstruct inclusive growth.

“Heritage is crucially important – and not just in the buildings,” he said. “But that does not mean we micro-manage building detail and preserve the wrong things that risk damaging social heritage and inclusive growth.”

Bristol City Council’s own economic strategy identifies a need for more than 3,000 new homes a year, while its housing evidence shows the median home costs almost nine times the annual earnings of middle-income households.