Royal London House
Liverpool
Yield 7%
- Central Location
- 199 Apartments
- studio, 1 & 2 beds
Prices From £193,000
Liverpool Waters
Liverpool
SOLD OUT
- Waterfront Location
- 128 Apartments
- 1 & 2 beds
Prices From £148,068
BeBold
Liverpool
NET Yield 6%
- Central location
- 22 apartments
- 1 Beds
Prices From £75,735
Vincent House
Manchester
NET Yield 7%
- Completed
- L1 Liverpool
- Studios
Prices From £61,500
Liverpool Property Prices
Parts of Liverpool has seen higher price increases than the entire UK for 2021, with some areas up 20% whereas other areas also topping the UK growth market such as Manchester and Sheffield have only seen around 8% growth.
Prediction for Liverpool
Predictions are impossible to predict with 100% accuracy, the below is a prediction from Savills for the entire North-West region.
- Savills forecasts the North West as the UK’s best-performing region to 2024, with house price growth of 24.1%
- House prices in Liverpool grew by over 22% from 2014-2019 (Zoopla).
- In the three months to May 2019, Liverpool led the UK, with an average house price increase of 0.9%, according to the UK House Price Index from Zoopla/home track.
This however doesn’t paint an entirely accurate picture as this takes into consideration the average for all cities and towns in the area. Liverpool among other North-West urban areas such as Blackpool are more likely to be above the average whereas other areas that have already seen much growth may be below the average. Liverpool still has much more growing to do and is typically behind Manchester in its growth trends by just a few years. So looking at Manchester Property Investment research is a good indication where Liverpool will be heading in the short term (5 years).
Liverpool Rental Yields
Liverpool has been outperforming in rental yields for years ever since the 2008 regeneration. With much of Liverpool still predicted to grow with a looming population boom and further knock-on effects from various regeneration projects rental yields are still expected to rise.
Since 2006 the average rent in Liverpool has risen by over 14%, however this is below inflation by around 27% meaning tenants in Liverpool are far better than the majority of the UK. What this means for investors is an expectation that rental prices will catch-up with the property price and the rest of the UKs growth in rental charge. Although this is speculative, yields in Liverpool are still very high. The expected rise in rentals is shown in the report below from JLL. With a higher yield naturally comes a higher price, so landlords may also benefit 2-fold.
Liverpool Regeneration
Liverpool is a very unique economy in a very unique situation. It s is rare for a city to have a lower population today than it had 100 years ago. Currently it’s about half the population it once was after WW1. Why is this important for investors to know? Liverpool’s infrastructure is built for twice the population than it currently supports, and the population trends are a clear indication that it is back on track and recovering from the Thatcher government. Investors still have years left to invest where buying into Liverpool is the equivalent of buying a stock at its lowest point. Property prices and yields should follow this growth.
Liverpool regeneration to date
Early 21st century Liverpool wasn’t even a shadow of its past. If you have been researching Liverpool you will be well aware of the L1 regeneration project completed in 2008. This project alone was said to cost £920 million and has added over 5000 jobs and attracted over 28 million visitors to the area. This is arguably one of the best examples of urban regeneration within the UK.
From this many other smaller developments projects have sprung up, from The Liverpool Met Museum, Met Cathedral, further shopping centres, regeneration round the docks and more recently the revival of the Cain's brewery estate into a thriving night life and tourist attraction.
Liverpool Future Regeneration
Liverpool’s future regeneration projects are no longer fuelled purely by government initiatives but by private sectors which is a huge testament to just the success achieved from this. Planned projects include…
- Duke Street and Parr Street Hotel, commercial space, and residential project
- Parliament Square, Baltic Triangle 17 storey building with rooftop spa
- Anfield - £6 million to help surrounding areas from Your Housing Group and in partnership with Liverpool FC
- And the most exciting, proposed project - Littlewoods Building conversion to film studio complex which is part of a £70 million plan.
Student Investments
Liverpool has over 70,000 students with a huge number of international students. The City has 2 major universities, The University of Liverpool and John Moores University. There are also smaller University such as Liverpool Hope and Liverpool School of Tropical Medicine. In total there are 7, however most of the students and international fame are centred around the main 2.
- University of Liverpool
- John Moore's University
- Liverpool Hope University
- Liverpool School of Tropical Medicine
- Liverpool Institute for Performing Arts
- The City of Liverpool College
Why is the international student population so significant?
The housing market for students in Liverpool is far and wide, however it all depends on the demographic of a particular student. For example, international students will gravitate towards more central locations in newer build properties, whereas 2nd year national students will need cheaper accommodation and head further out from the centre for cheaper HMO (house of multiple occupants) accommodation.
With all these Universities you also have a huge number of teaching staff and PHD students. This demographic will look at keeping clear of student occupied areas and developments. To sum up.
- International Students have more money and look at convenience in terms of location
- National students will try to save money and often house share
- PHD and teaching students/staff will look towards residential blocks close to the Centre and University
Types Of Student Property Investment in Liverpool
Liverpool HMO
Liverpool HMO properties are becoming near impossible to come by as they went through a period of being so cheap but with the ability to rent them out to multiple occupants creating high rental income. This means landlords simply will not let go of these properties. As a student finding a HMO also becomes difficult. Students will typically start looking halfway through their first year, so come summer most properties are taken. Student only buses also run all these HMO based routes to ensure the area remains feasible for students. Many landlords of these properties have also removed living rooms and created extra bedrooms or have expanded rooms into the lofts and basements to increase yield with more occupants.
Liverpool HMO Cons
- Hard to come by as an investment
- Older properties needing renovation
- High maintenance
- Further from the Universities and city centre
Liverpool HMO Pros
- High Yield income
- High occupancy
- Options to expand and create more rooms
Map showing the 2 major HMO hotspots for students. It is not all inclusive as the HMO market spreads to most areas in the below map. The main areas are Wavertree/Toxteth and Kensington.
Liverpool Purpose Built accommodation
The accommodation from the likes of Unite Students and other developers are built typically around the University or City Centre. This creates almost no need for students to ever use public transport of any kind as everything is within walking distance, from nightlife, shops and lecture halls. As a city centre Liverpool has everything you could ever need, this is a huge appeal for international students.
Liverpool Purpose Built Accommodation Pros
- International students pay higher rents
- Less renovation and maintenance as these blocks are better managed and typically newer
- Location is very appealing
Liverpool Purpose Built Accommodation Cons
- More expensive to purchase
- Some can be too close to nightlife
Map showing area between City Centre and The Universities where purpose built accommodation is popular for international students, also known as The Knowledge Quarter, Baltic Triangle and The Georgian Quarter.
Liverpool Residential Investments
The residential market in Liverpool in part ties closely with its student market, as we have already discussed with PHD students and teaching staff helping to massively prop up the entire economy of the city.
Waterside Liverpool Residential Area
This are will also attract a secondary market related to students. By this I mean mature students with money, teaching staff and even PHD students. The reason for this is mostly down to them having a higher budget as well as wanting to remain away from the noisier student developments whilst still being within easy reach of the Universities and City Centre.
Pros
- Higher rents
- Professional tenants
Cons
- Little HMO opportunity
- Smaller student demand
Map showing the Liverpool waterfront, popular for a higher standard of city living for mature students, non-local teaching staff and earning PHD students.
Other Liverpool Residential Area
Once you move beyond the city centre and head north beyond Beatles town and towards the grounds of Liverpool FC and Everton FC you come across a far more local population. At this point as an investment you will only be renting to families and other local occupiers. Rental opportunities dry up at this point as you would not be able to rent to students, University related staff or even tourists.
Other residential areas include south towards Runcorn and across the Mersey on Birkenhead. Generally speaking the residential areas are not as attractive as anything going on within the city centre for investors.
Pros
- Long term let tenants for easier management
Cons
- Lower yields
- Less opportunity
Map showing areas beyond the city centre where the wider residential population of Liverpool reside.
Liverpool Serviced Accommodation Investments
Along with its student population Liverpool has an undeniable market for tourists with the following all attracting visitors.
- Football – Liverpool FC and Everton
- Aintree – host of the world famous Grand National
- The Beatles – multiple museums, tours and historic/iconic locations
- Museums including a Tate, Titanic experience, Beatles museums and more
- Extensive Nightlife
Liverpool has a massive tourist market with over 54 million tourists and 4.8 million overnight visitors annually. Naturally these apartments will be located around the city centre and waterfront where the most activity is happening.
Pros
- High occupancy
Cons
- Market dominated by large hotel firms
- High management and maintenance costs
Map showing the Liverpool areas popular for serviced apartments
Best Property Investment in Liverpool
This can vary depending on your goals and your situation. Either way you will benefit from the increase in capital appreciation that all of Liverpool can offer along with the high occupancy and overall growing economy.
Best for hand on investors
If you’re a landlord already active in Liverpool with a management company of your own or perhaps you are hands on with maintenance and management yourself then HMOs are just a great way of building up a high yielding portfolio, however this doesn’t work as well if you are not actively involved in the investment. Given that almost all these properties will be freehold it does make them more attractive. If you are not hands on then these would still be a fantastic investment if you find yourself a good management company.
Best for investors wanting easy stream of income with great potential and growth
Since waterside /dock located developments are so highly sort after by professionals and anyone looking to visit the area these developments can offer a fantastic stable passive income with little work involved as they can be managed for you. This area will remain desirable and therefore is also one of the most secure options.
Liverpool Property Investment
If you are looking at Liverpool as a potential location to invest your money you will put yourself at an advantage if you know the area and local market before making any decision. Explore not just the numbers and financials but gain inside knowledge of the various locations and property investment types.
60,000
LIVERPOOLS STUDENT POPULATION
351%
PROPERTY PRICE GROWTH IN LAST 20 YEARS
5.87%
AVERAGE RENTAL YIELD