Property investment in Liverpool is high on the agenda of many right now, with the city’s property growth outperforming London by five times. Here, we decipher why we think Liverpool’s property market is so strong.
Deciding where to invest can be the trickiest part of property investment. Liverpool is a city that’s constantly ranking high in the top cities to live and work.
Whether it’s the city’s rental yield, which sits at an amazing average of 10% or the lifestyle the city can offer, you can’t go wrong with investing in Liverpool’s property market.
The UK’s property market is at an all-time high. The North West is soaring high with house price growth forecast at 27.3%. Not only this, the average house price growth in Liverpool has also outpaced London by almost five times since the start of the pandemic.
As mentioned in our previous blog, buy-to-let property is the perfect investment at the moment, with property experts predicting excellent capital gains and rental yields in the coming years.
With 52,300 businesses across the city, 58,000 students and 30,000 graduates amongst the 902,867 strong population, the Liverpool rental market is thriving.
In terms of places to live, Liverpool has so much to offer. Its cultural history speaks for itself, from the amazing architecture of the Albert Dock, to following the footsteps of The Beatles, there’s so much to see and do.
Not only this, Liverpool’s nightlife has a reputation that precedes it. With the city being quite small, it makes for an ideal night out, with pubs, clubs, and bars on every corner. If food is your thing, you’ve got approximately 300 restaurants to choose from – you’re absolutely spoiled for choice in this fantastic city.
How safe is your investment in Liverpool?
The short answer? Very safe. Over the past five years alone, property values in Liverpool have increased by over 25%.
Hometrack’s UK Cities House Price Index listed Liverpool as the city with the strongest level of annual house price growth at a city level.
While capital gains are important, as an investor with long-term plans, rental yield is key. As mentioned earlier, Liverpool has an impressive average rental yield of 10%. This annual return on investment is proving popular among investors and has seen our No. 1 Hatton Gardens development sell extremely well so far.
A recent study, which used UK Land Registry, Zoopla, On the Market and Property Data figures revealed Liverpool as the UK’s top performer in terms of rental yields.
Several Liverpool postcodes appear in the top 20 list, making it the highest yielding location in the UK. This is the reason the city is one of the most desirable UK hotspots for investors both from the UK and overseas right now.
The L7 postcode in Liverpool tops the list, where the average property listing is below the UK average at £95,000. Landlords in this area are reaping the rewards of average yields of 10.3%. Also scoring highly were L6 with 8.4% yields, L1 with 8.1% and L15 and L4 with 7.4%
Regeneration of Liverpool
While property investments in Liverpool are currently performing exceptionally well, the regeneration of the city that’s currently underway is only going to improve this even further.
A city that was once at the heart of the shipping industry meant that regeneration was required as the sector declined. Retail and culture-led regeneration has seen Liverpool become a hub of retail, culture, arts, entertainment and more.
Over £1bn has been invested in Liverpool in recent years, and landlords and homeowners have reaped the rewards.
As regeneration continues in Liverpool, improving its accessibility, transport and cycle lanes, there is more low hanging fruit to grab onto in this thriving city.
As a city steeped in history, it’s unsurprising that Liverpool welcomes over 54 million tourists and 4.8 million guests each year.
If you’re not looking for the commitment that long-term lets offer, then thanks to its culture and Premier League football clubs, short-term lets are perfect for overnight or weekend stays.
According to recent stats from Airbnb, the daily rate of properties in Liverpool is £145 and the average occupancy rate is 48%. This means the earning potential in short-term lets in Liverpool is £26,500 a year (just over £2,200 a month).
Long-term lets are a more common route for investors to go down. With young professionals and students looking for places to rent, it’s a busy market. With new developments, comes excitement. Our No.1 Hatton Gardens development ticks so many boxes.
No.1 Hatton Garden
With prices starting at just £99,000 and yields more than 10% more than achievable, our development in a prime city centre location is more than enticing.
Whether you’re looking for a studio, a one or a two-bedroom apartment, there are apartments designed to a high standard for your needs.
This development has excellent features, such as:
- On-site management
- 24/7 CCTV and secure building access
- Parking and visitor parking
- Stunning city views
Time to Invest?
If you’re hoping to invest in Liverpool, then we’re more than happy to answer any questions you may have. Our experienced team is on hand and well versed in the investment process.
Not only this, we’ve been investors ourselves and know the risks. With over 40 years of combined experience in the UK property industry, we’re pleased to offer expert advice on how you can make the very most out of your property portfolio.