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Affordable Property and High Rental Yields
Liverpool has one of the fastest-growing property markets in the UK, while still being affordable. Its affordability coupled with a strong rental market presents some of the best rental yields. In the next five years, Liverpool’s market is forecast to grow by 27.3%. This compares to London’s 12.7% increase, making it close to five times faster than the capital.
Liverpool has become a growing hub of thousands of skilled professionals entering or graduating from the city, looking for accommodation. The high rental demand created a house price boom over the past few years, causing investors to benefit from Liverpool’s capital growth. Liverpool house prices are some of the lowest in the country and, with average rental yields reaching 5.4%, investors can get much more for their money.
Large Student Population
Home to seven universities, the largest amount in the country, Liverpool welcomes over 70,000 students every year. Approximately 15,000-25,000 of these join Liverpool John Moores University alone.
Liverpool has a large young demographic of 17 to 29-year-olds, hence its strong demand for high-quality accommodation. This is mostly for one- and two-bedroom properties. Single-lets and new-build developments are some of the best types of investments due to the demographic’s modern yet affordable requirements.
Having one of the UK’s highest graduate retention rates, Liverpool has been named as one of the best Northern cities for graduates starting their careers. For this reason, the city is a melting pot of entrepreneurial talent and does not fall short of rental demand. To invest in Liverpool is to invest in the large portion of professionals graduating in the science sector, naturally being drawn to the city’s recently regenerated Knowledge Quarter and Science Park to commence their careers. Liverpool’s employment creation is extremely robust due to the large student population. This attracts many businesses to relocate and benefit from this talent pool, further strengthening the economy.
£7 Billion Regeneration
Liverpool is home to some of the top regeneration projects in the North, totalling up to £7 billion in investments.
The Liverpool Waterfront is the city’s main project and one of the country’s biggest. An impressive £5.5 billion transformation of the two million square metre route that stretches along Liverpool Waters is underway. Here, a new business hub, residential district, and leisure spaces will attract businesses and working professionals, ultimately boosting demand across the city. As this regeneration nears completion, more new-build accommodation will arise. A Liverpool investment will produce plenty of benefits, like instant equity, through off-plan opportunities.
Before 2026, the regeneration projects are set to deliver 10,000 new homes, 17,000 new jobs, £250 million worth of road infrastructure, a new TV and film hub, and Everton FC’s new £500 million stadium. Constant improvements across the city increase its desirability to live and work there, consequently benefiting the local economy.
A Top Tourist City in the UK
Liverpool is a UNESCO City of Music for producing musicians like The Beatles and Frankie Goes to Hollywood. Liverpool is globally recognised for its rich history and contributions to musical arts. And its tourism numbers account for this.
Tourism equates to 50% of Liverpool’s economy, attracting over 60 million tourists before 2019. However, hosting the Eurovision Song Contest this year saw over 50,000 people visit the city and around 200 million viewers tune in worldwide. The event put Liverpool in a global spotlight it is building on that momentum. Up to £30 million in profit was predicted through the event, producing a long-term boost to tourism that is expected to increase by 5% per year and rise to £260 million by 2026.
These numbers do not account for the existing successful tourist attractions. Liverpool ONE is a top retail shopping destination and Liverpool Football Club is a tourist hotspot. No one can forget the legendary Cavern Club either, or the Tate Liverpool art gallery, which will soon undergo renovation.
Since the pandemic, the popularity of short-term lets has grown. A 7% increase in demand for these holiday lets was seen between 2019 and 2022, seeing a total of £2.1 billion in sales and 512 million nights registered. Investing in short-term rentals in heavily tourist-populated cities like Liverpool should be considered.
Excellent Transport and Connectivity
Liverpool is not short of public transport options. From Liverpool Lime Street Station and Merseyrail services to an expansive bus network and the Mersey Ferry over the water. Liverpool has fantastic accessibility and is perfect for those commuting to or from the city centre. This is not forgetting John Lennon Airport, one of the country’s most popular airports. Every year, approximately 31 million people travel here and make the most of the short-term rentals nearby.
Lime Street Station sees nearly 20 million passengers passing through every year. From here, residents can find direct connections to Manchester, Newcastle, Glasgow, and even London Euston in just over two hours. The array of transport options leaves Liverpool residents with flexible travel. Whether by car, rail, or bus, citizens can be in the furthest reaches of North or South Liverpool and be within a 20-minute range of the city centre.
In the outskirt areas of cities, properties with larger indoor and outdoor spaces for a considerably lower price can be found. As a result, investors look to suburban towns rather than city centres for more profit. Some of the best areas of Liverpool do exactly that.
The Best Place to Live and Work
Liverpool was named the best place to live and work in the UK in 2022. Citizens score it high for its manageable cost of living and rewarding career prospects. This is due to being one of the most affordable cities in the country and the many regeneration projects creating more job opportunities. If that was not enough, the pace of life and overall happiness of residents also helped Liverpool’s title.
Some of the best areas in Liverpool are listed in six of Totally Money’s Top 25 Buy-To-Let Postcodes in the UK – double than any other city listed. With Liverpool City Centre properties averaging only £10,000 more than in the towns and suburbs, demand is high in these areas for their desirability more than their affordability. Liverpool is invested in constant house, road, and leisure improvements spreading across the whole city.
Inspired to invest in Liverpool?
From its history and capital growth to regeneration projects and market forecasts, the CityRise City Guide will help in your decision to invest in Liverpool.
Click here to download the CityRise City Guide.
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