The UK city of Liverpool has a growing international reputation. Known for its footballing prowess, rich musical history, modern architecture and welcoming people, the city is also increasingly appearing on property investors’ radars.
As such, we thought it was high time to take a look at Liverpool’s property market and answer the question: Is Liverpool a good place to buy to let?
Let’s break this down and find out.
Is Liverpool a good area for investment?
First, let’s look at the fundamentals. Based on the amount of regeneration work underway and the city’s population growth, the answer is a resounding ‘yes’ – Liverpool is indeed a good area for investment.
In September 2021, the Liverpool City Region Combined Authority announced plans to invest up to £45m for the “transformational regeneration” of Everton FC’s new stadium at Bramley-Moore Dock, with linked targets for employment and training opportunities and social value.
The announcement is the latest in a series of high-profile regeneration schemes in the city. Liverpool Waters, with an estimated value of £5 billion, is one of the largest regeneration projects in Europe. Sitting immediately between Liverpool Waters and Bramley-Moore Dock is the Ten Streets creativity district, a 1 million square foot enterprise and arts zone. Then there’s the £1 billion of new development in the Knowledge Quarter, the £250 million Better Roads project, the award-winning Liverpool Science Park and so much more.
Liverpool’s leading reputation as a centre of science and technology has drawn skilled workers into the city. Since the turn of the millennium, the city’s population has grown from 851,000 people to 906,000 in 2021. By 2035, it is projected to reach 992,000. That means the city has 14 years to provide accommodation for an additional 86,000 people – certainly a promising indication for those considering investing in buy-to-let property there.
Will house prices rise in Liverpool?
Understanding the potential for capital growth is key to any investment. So, are property prices rising in Liverpool? And will they continue to do so?
According to hometrack’s August 2021 UK House Price Index, property prices in Liverpool are rising at a faster rate than they are in any other UK city, at 9.7% year-on-year. Is that a monthly blip? Far from it! Since December 2020, Liverpool has sat at the top of the index for all but two months (February and March 2021, when it saw the second highest rates of price growth rather than the highest).
Looking forward, there’s plenty to indicate that this trend could continue. Savills’ July 2021 Mainstream Residential Property Forecast pegs the North West as having the highest growth potential in the UK, alongside Yorkshire and the Humber, with property price rises of 28.0% projected in the five years to 2025.
Are rents rising in Liverpool?
Shawbrook Bank’s Buy-to-Let Report 2021 reports that the highest rental yields in the UK can be found in the North West, where they average 5.5%. Zoopla’s July 2021 Rental Market Report, meanwhile, shows an annual percentage change in rents in Liverpool of 5.8%, with an average rent of £633.
At the same time as rents are rising, demand is picking up, with renters flocking back to city centres following the UK’s highly successful Covid vaccination rollout. According to the Hometrack Q2 2021 Rental Market Report, as activity picks up, the average time to rent is falling. It hit a five-year low in July 2021, at 15 days. In Liverpool it was even lower – under two weeks.
Where is the best place to buy in Liverpool?
With renters returning to the UK’s cities en masse, the central L1 postcode zone has much to offer from an investment standpoint. Renters there can enjoy city life at its best, from employment opportunities to Liverpool’s vibrant cultural life.
This means that developments such as The Roscoe are ideally located for both renters and investors. The L1 location means that everything is on the doorstep, with the one- and two-bedroom apartments designed around the needs of young professionals looking to get the most out of the city. With prices starting at £155,950, the properties offer exceptional value for money compared with similar properties in other regional cities such as Manchester or Birmingham, which both have a far higher average property price.
Is Liverpool a good place to invest in property?
Does all of this add up to Liverpool being a good place to invest in buy-to-let property? Yes, it most certainly does. The city’s solid performance in terms of price and rent growth, its huge regeneration programmes and rapidly growing population all mean that Liverpool is a city that is very worth of property investors’ keen attention.
“Liverpool has it all – the underlying market fundamentals are strong, there’s excellent potential for growth and it’s located at the heart of the UK’s highest-yielding region, as well as its fastest growing for property prices. 2021 has been a busy year for Fabrik Invest in terms of property investment in Liverpool and we’re predicting that 2022 will be even busier.”
Dale Anderson, Managing Director, Fabrik Invest
To find out more, you can call the Fabrik Invest team on 020 8175 9891, email enquiries@staging.fabrikpropertygroup.com or visit www.fabrikinvest.com.
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