Liverpool has come a long way in the last few decades. An economic powerhouse and city with plenty of big plans in store, it isn’t hard to see why so many people are looking up North for their next investment. The property market in Liverpool has rightly gained attention over recent years as a hotspot for property investment. Those interested in investing in Liverpool should take some time to read the reasons behind Liverpool’s property market’s success.
Liverpool, much like other Northern cities, is significantly more affordable to buy property than it is in the South. In London, the average property price stands at £484,173 — a fraction of the price you can expect in Liverpool with the city’s £130,677 average. The fact that Liverpool property is so low priced doesn’t diminish the quality and prospects behind it, either. Many might consider London property to be more in demand than Liverpool, with high rental costs generating a good investment return. In reality, London falls short on this front, with Liverpool’s average rental yields of 5.0%, well exceeding the capital’s 3.05% average.
Many Londoners are starting to leave the capital and move up North to cities like Liverpool and Manchester. Many of these people recognize the strength of the property market in Liverpool compared to London, whilst some are simply seeking new opportunities in an area with great business potential and affordable rental properties. Young professionals make some of the most popular tenants in the UK for residential rental properties, driving high-quality city-center-based apartments. Liverpool has one of the highest city center populations, which has led to strong demand for Liverpool rental properties. With more of this demographic leaving London, the demand for residential apartments is shifting towards the North, making Liverpool investments the smart choice for those hoping to attract young professional tenants. RW Invest is a property company with a choice of fantastic buy to let properties in Liverpool city center, offering rental yields between 7 – 8%.
It isn’t just residential properties that are popular within Liverpool’s buy to let market, with student accommodation making a solid investment choice. Liverpool has a student population of over 70,000, with high numbers of overseas investors choosing to study in the city year after year. Not only is the demand for student accommodation high in Liverpool, but the fact that many students are now happy to pay higher rental costs for high-end, luxury student apartments has meant that the student market in the city boasts some attractive rental yields for investors.
Capital growth is, of course, a big factor for investors to think about before choosing an area to make their next property investment. Rest assured that in Liverpool, regeneration projects and an ever-growing economy have meant that the prospects for capital appreciation are high, with house prices in the North West predicted to rise by 21.6% over the next five years.