Buy-to-let investment booms in Liverpool

Liverpool is leading property investment in regional cities

Buy-to-let investment in Liverpool is enjoying a boom. Rental yields are high, and demand for rental property is exploding. Property investors in this part of the North West of England are enjoying some of the best property investment dynamics in the UK. There is a huge regeneration programme in place. The local economy is growing rapidly. Tens of thousands of students are queueing for rented accommodation.

In this article, you’ll learn why Liverpool is one of the best places to invest in property UK, with property investment opportunities to suit all property portfolios and investment strategies.

Tenant demand is surging in Liverpool

According to a new analysis from Mistoria Estate Agents, Liverpool’s private rented sector is in the middle of a huge boom. Tenant demand is up by almost 20% across the city. The student sector is particularly vibrant, with 6.6 tenants chasing every shared room in a new buy-to-let property. High-end quality rental accommodation is also in high demand.

Rental yields are high – and could rise

Rental yields in Liverpool are high and could rise as competition for rented property heats up. For example, the average price of a flat across Liverpool is £112,152 and the average rent is £670 per month. It equates to an average gross rental yield of 7.2% – that’s almost a third higher than the UK average. Of course, this is an average rental yield – some property investment opportunities in Liverpool produce even higher yields of 10% and more.

Property is highly affordable here. Demand from renters is extremely high. Little wonder why mortgage specialist Private Finance has named Liverpool as the number one BTL hotspot in the UK. According to its research, the city offers rental yields of 8%.

Investors starting to favour regional cities

Since the end of the Global Financial Crisis, property investors in London have fared exceptionally well. Prices in the capital have increased faster and higher than the regional cities. It is beginning to change. Residential property investment in regional cities is benefiting from affordability, regeneration projects, and investment in infrastructure.

In our High-Speed Rail 3 Report, we highlight the opportunity for property investors in Liverpool, which we have called a city with a “rich heritage and wealthy future.” We recognise that “with HS3, an enormous political desire and financial commitment to the development of infrastructure, business potential and uplifting of skills, Liverpool could provide exceptional opportunities for property investment if goals for economic growth are met.”

Those economic goals are already being met, even faster than we anticipated. In December 2016, Office for National Statistics data showed that Liverpool’s economy grew by 3.1% in 2015. That’s faster than any other major UK city. It’s way above the national figure of 1.7%, and almost double the growth rate experienced in London.

A northern powerhouse city experiencing massive regeneration

Liverpool is experiencing massive inward investment. Considered a northern powerhouse city, thousands of jobs are being created here. Already, around £5 billion has been invested in redeveloping the city. The 30-year Mersey Waters Enterprise Zone regeneration programme will see £10 billion transforms a whole swathe of Liverpool. It should help Liverpool compete with the likes of Hamburg, Boston, Toronto and Barcelona regarding the scale and diversity of its waterfront offer and associated economy.

Liverpool – the city of investment opportunity

Liverpool is where some of the UK’s most ambitious residential, commercial, business and leisure developments are in full swing. It’s great shopping and leisure destination. And there are plenty of property investment opportunities for all investors:

• Near the city centre, new build properties are attracting a growing number of professionals renting homes for lifestyle benefits.
• Some of the best yields can be found in dedicated student accommodation located within a few minutes’ walk of university campuses.
• Whether your target investment property is a traditional buy-to-let, HMO, or student accommodation, you’ll find Liverpool has some of the most affordable and highest yield opportunities in the UK today.

Our unique Hotspots Algorithm examines 108 data points across 324 areas in the UK. We first identified Liverpool as a major buy-to-let investment opportunity several months ago. We think that the opportunity is still as good today, if not better.  Contact one of our team today on +44 (0)207 923 6100,

Live with passion

Brett Alegre-Wood

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