Liverpool Property Investment Guide
Are you looking to invest in the buy-to-let market of Liverpool? If so, then you have come to the right place. This Liverpool Property Guide provides an overview of the current economic climate and future growth potential in the area, average property prices in different areas of the city, and what to expect for rental returns. We will also be covering upcoming investments that are expected to take place in the area, so you can get the most out of your Liverpool property investment.
Current Economic Climate
The Liverpool economy has been on an upward trajectory in recent years, with significant investments in various sectors. The city's buy-to-let market has been attracting a lot of interest from both domestic and foreign investors, given the growing demand for rental properties. The pandemic has had a minimal impact on the city's property market, and investors are optimistic about its growth potential given the low entry property prices.
Despite the pandemic-induced economic slowdown, Liverpool has continued to thrive, thanks to its diverse economy. The city is home to major employers in healthcare, education, tourism, and creative industries. With the government's commitment to invest in the Northern Powerhouse project, Liverpool's economy is expected to grow even further, providing more job opportunities and driving up demand for rental properties.
The Liverpool buy-to-let market has been relatively resilient, with investors continuing to snap up properties despite the uncertain economic climate. The city's low entry prices and high yields make it an attractive option for investors looking to get a foothold in the property market.
Future Growth Potential
Investing in property in Liverpool presents a great opportunity for buyers looking for a strong potential for growth. With the current economic climate improving and a continued influx of investment into the area, Liverpool is primed for significant development.
The regeneration of Liverpool's city centre, waterfront, and various suburbs has attracted property developers, investors, and tenants alike, who have all contributed to the area's rapid growth. As the city continues to evolve and grow, it's easy to see why property deals in Liverpool are gaining momentum.
One of the main reasons behind Liverpool's future growth potential is its location. Situated in the north of England, Liverpool is a major port city, with excellent transport links, including a well-connected airport and two major train stations. This accessibility makes it an attractive destination for businesses, tourists and students.
In addition, the Liverpool city region has seen a significant increase in investment in recent years, with the establishment of several new companies and continued expansion of existing businesses. This, coupled with the growth of Liverpool's already thriving creative, digital and scientific industries, means that the demand for rental properties is also on the rise. Therefore, buy-to-let Liverpool properties remain a popular investment option.
Overall, with a stable economic climate, upcoming investment into the area and an already-established reputation as a desirable location, Liverpool offers a solid opportunity for property investors to make a great return on investment. The future looks bright for those who invest in Liverpool's property market.
Regeneration and plans that are ongoing or in the pipeline
The Liverpool Waters Regeneration - A redevelopment of the docks on the Liverpool waterfront, it’s been underway since 2018 worth a whopping £5.5bn bringing in new commercial units, residential and retail into the area including Everton’s new football ground.
The Paradise Project - A £1bn completed the redevelopment of the cites 42 acres which has transformed the city into a European capital of culture. changes to the city’s transport interchange, the brand new Liverpool ONE which has brought whole new retail parks for the likes of restaurants and bars.
Anfield Regeneration Plans - Now Approved. The new parade will include shops, restaurants and several high-profile shopping outlets also on board.
Average Property Prices
When investing in Liverpool property, one of the most important things to consider is the average property prices in the different areas of the city. While there are some neighbourhoods that are known for being more expensive, there are also areas that offer excellent value for money.
If you're looking to invest in buy-to-let Liverpool properties, it's important to have an idea of what kind of prices you can expect to pay. The good news is that there are still plenty of opportunities to snap up properties at affordable prices, particularly if you're willing to look outside of the most popular areas.
According to recent data, the average house price in Liverpool is around £150,000-£200,000, although this can vary significantly depending on the area. For example, in some parts of the city centre, prices can be substantially higher, while more affordable options can be found in suburbs like Huyton and Croxteth.
Of course, when it comes to investing in property, it's not just about the initial purchase price - you also need to consider what kind of rental returns you can expect. With Liverpool's growing population and strong rental demand, buy-to-let investors have plenty of opportunities to achieve attractive yields. Investing in the right property in the right location, you could be well on your way to building a profitable property portfolio in Liverpool.
Expected Rental Returns - Traditional Buy-to-Let
Investing in property in Liverpool is a smart decision, especially for those interested in the buy-to-let market. With a growing population and increasing demand for rental properties, the potential for steady rental returns is high.
On average, the rental yield in Liverpool is around 5.2%, with some areas experiencing even higher returns. Areas such as L7 and L15 have seen a 7% and 6.6% rental yield, respectively, making them popular choices for investors.
It's important to note that the expected rental return can vary depending on the location and type of property. Studio flats and one-bedroom apartments typically generate a higher rental yield compared to larger properties. Additionally, properties located near universities tend to have a higher demand from students, leading to increased rental yields.
Investors should also consider the rental demand and competition in the area before investing in any property deals in Liverpool. Properties in areas such as the city centre and popular residential neighbourhoods like Anfield, Aigburth, and Toxteth are in high demand and have a lower vacancy rate.
In summary, the Liverpool buy-to-let market presents an excellent opportunity for those interested in investing in property. With a high rental yield and increasing demand, the potential for steady rental returns is attractive to many investors. However, it's important to research and analyze the market before investing to ensure success.
Student Sector:
Liverpool is home to three main universities, the University of Liverpool, John Moores University and finally Hope University. with all combined, the city boasts a student population of over 70,000 which is on a growing trend to reach over 80,000 in the next few years due to growth in both educational courses and university expansion. The government cannot keep up with the development of accommodation creating a high level of demand within the city. The council in more recent years have welcomed private developers in the purpose-built student accommodation sector. You can expect studio prices from £55,000/£80,000 heavily dependent on the area and size of the apartment, with rents average across the city of £150/£170 per week they create a very secure healthy return on apartments of up to 10% yields.
Serviced Accommodation Sector:
Accounting for roughly 40% of all of the cities' jobs, Public administration, health and education are the biggest single employment sector in Liverpool. Barclays, Mcdonalds and Tesco are just some of the biggest workforces within the city and likely target tenants within the serviced accommodation sector. A massive 53 million visits per year in tourism, with an annual growth of 5% year on year. The city is a fantastic location for first-time investors in serviced accommodation seeking higher returns than what the buy-to-let market offers. The current average nightly rates within the city are £95, with apartments prices from around £110,000 investors can see conservative rental yields of around 11% to 15%. some of the target corporates to consider for this area:
Overview:
Liverpool is undergoing big money regeneration with already big developments recently completed for example The Paradise Project. The city itself offers property investors security in the cheaper zone (more affordable) property prices however with the ever-growing demands from both the student, buy-to-let and serviced accommodation market, investors can enjoy secure rental returns with the long-term outlook of capital growth given the solid baseline of re-investment from the public and private sectors along with the movement of prices still yet to catch up with the likes of Manchester and Birmingham.