Top 5 Reasons to Invest in Liverpool

1 | High rental yields

Infamously, Liverpool is one of the highest performing buy-to-let locations in the UK. In fact, in Totally Money’s list of top 25 buy-to-let UK postcodes, six of those postcodes were in Liverpool. In particular:

L7 with 10.3% yields.
L6 with 8.4% yields.
L1 with 8.1%.
L15 and L4 both with 7.4% yields.

In certain areas, yields are doubling the UK average. Particularly in L7, consisting of Edge Hill, Fairfield, and Kensington – all popular student areas. In the last year, average rental prices have increased by 6.3% – which is exceptionally high given the uncertainty caused by the pandemic. The rates are higher than its neighbouring hotspot, Manchester. This has created a lucrative opportunity for investors. As property prices in Liverpool are significantly cheaper, investors can expect to see attractive levels of capital appreciation.

2 | Affordable property prices

Compared to the rest of the UK, Liverpool is an affordable place to invest. The national house price average currently sits at £230,700, following a 5.4% increase from last year. According to Zoopla, the current price of a house in Liverpool is £133,500. Ultimately, a property in Liverpool costs only a quarter of a property in London.

While property prices are still staggeringly low, Liverpool has also been voted one of the best cities for house price growth by The Guardian. In the last year, prices have risen by a staggering 11.4%, knocking the national average out of the park. For property investors, this could not be a better investment opportunity. In particular, first-time investors. For those who have a limited budget, Liverpool is still able to offer significant rental yields. As a result, investors can rest assured that properties in Liverpool will deliver impressive returns.

3 | Strong demand

The metropolitan population of Liverpool is the fifth largest in the UK. With ongoing regeneration plans and a growing economy, the city’s population continues to increase at a steady pace. As a result, demand is only set to rise for this transforming city. For those looking to invest in property in Liverpool, a growing population is a key factor to consider, as a growing population ensures consistent demand.

In the last decade, Liverpool’s population has soared drastically. In the city centre, figures have doubled what they were in 2006. Part of the reason for this is Liverpool’s stable student and young professional population choosing to move to the city. Liverpool’s world-renowned universities feed in a talent pool of 30,000 graduates a year. As we know, Liverpool is one of the most affordable cities in the UK.

Not just to buy property in, but to live in too. From buying a house to a pint of beer, Liverpool’s affordability has massively boosted its appeal as a city. Also, as the European Capital of Culture in 2008, Liverpool has a lasting legacy. Attracting over 839,000 visitors, Liverpool has long been a popular tourist destination. Home to an illustrious history and definitive local culture, Liverpool has a special place in many peoples hearts. As a result, demand continues to exceed supply in this seaport city. In turn, presenting plenty of investor opportunities.

4 | A Growing Economy

In recent years, investors have shone a spotlight on the North, and we have seen the creation of the Northern Powerhouse. Liverpool has been a key player in this dynamic. It’s not just investors who are turning their attention away from the South, but businesses too.

Currently, Liverpool has a GVA of £32 billion. However, Liverpool’s GVA growth is expected to more than double over the next year, growing by 1.5%. With projects like the HS2 well underway, Liverpool will also directly benefit from improvement to connectivity and transport. Consequently, we can expect to see many more businesses moving to the city.