Low prices, high yields, and a bright future for property investment in Liverpool
It’s green for ‘go’ in this Premier League city
Think of Liverpool and you may likely think of The Beatles and the Merseybeat that reshaped the music world in the early 1960s. You may think of Liverpool FC, one of the world’s most famous football clubs and winner of five European Cups/Champions’ Leagues. You may know that the city is home to the oldest Chinese community in Europe and the oldest African community in the UK. Horse lovers and occasional gamblers will know that at Aintree, arguably the world’s best-known horse race is run each year. Yes, Liverpool is famous for many things, but did you know that the city:
- Was Europe’s Capital of Culture in 2008?
- Is home to several UNESCO World Heritage sites?
- Has the best house price rises in the UK, according to Hometrack?
- Has five of the top 20 UK postcodes when measured by rental yield?
- Is undergoing a £14 billion programme of regeneration?
In this article, we’ll introduce you to the current growth and yield dynamics of Liverpool property investment, and the regeneration that is not only transforming the city but also underpinning the potential for stunning future returns when you invest in property in Liverpool – making it one of the best places to invest in property UK.
Liverpool, the affordable UK city where house prices are rising fastest
Liverpool headed the Hometrack UK Cities House Price Index in September with an annual rise of 6.9%, ahead of Birmingham in second place with a rise of 6.5%. Not only are house prices rising fastest here, they are also the cheapest of all UK cities, with an average price of £120,500 according to the Index.
Liverpool, where property investors win with high rental yields
For many property investors, rental yield is the Holy Grail. While there are many strategies to maximise buy-to-let yield and cut the tax on rental income, you’ll get a head start by investing in property in an area producing great rental yields.
Liverpool certainly delivers for yield investors. According to the latest rental yield research by Totally Money (December 2018), some of the highest yielding postcodes in the country are in Liverpool. It boasts five of the top 20 postcode locations for buy-to-let income, with yields ranging from 7.44% to 9.79%. According to Home.co.uk, the average rent in Liverpool is £904 per month.
Regeneration points to future potential for investors
Affordable property, with prices rising at more than double the national average pace, producing fantastic rental yields. But what does the future hold?
While I don’t have a crystal ball, the amount of regeneration taking place in Liverpool is evidence of a very bright future for the city and those who invest in property here. As part of its £14 billion programmes of development and regeneration, there will be 10,000 new homes delivered in the next five years, a new TV and film hub, around 2 million square feet of new commercial office space created, and the road infrastructure will undergo a £250 million upgrade. However, this is just the tip of the iceberg. Major regeneration projects include:
· The Anfield Project
Began in 2012, this project is transforming the area around Liverpool FC’s Anfield Stadium. It will deliver a total of 1,000 new homes, a new public square and new shops.
· The Baltic Triangle
This area, to the south of the city centre, has so far received £190 million of investment to regenerate. This location is home to some of Liverpool’s most creative companies, and developments here include upwards of 800 rooms designed for student accommodation and hundreds of new apartments that will appeal to young professionals. There are also more than 2,500 units currently proposed (with or seeking planning permission).
· Paddington Village
£1 billion has been earmarked to expand the eastern gateway to the Knowledge Quarter. It is expected that more than 10,000 new jobs will be created here, in the fields of science, technology, education and health. The vision is for a sense of community to be created, in a place where it is great to live, work and play – with new workspaces, cafés and restaurants, shops and accommodation.
· Festival Park
The masterplan for Festival Park includes a high-quality public realm, new retail facilities, bars and restaurants, a new primary school, and 2,500 new homes to create a ‘living community’. It envisages Festival Park as a ‘major cultural and leisure destination’, benefitting also from open space and opportunities for sport and recreation.
It is impossible to detail all the regeneration happening in Liverpool in a single blog. Why not get in touch with Gladfish today to discover more about the incredible property fundamentals that underpin property investment in Liverpool, and why we think investment here should produce incredible returns in the coming years?
Live with passion
Brett Alegre-Wood