Liverpool. Birthplace of The Beatles, iconic waterfront and World Heritage Sites... but is it a good place to invest my money and make a healthy return?
• House prices in Liverpool have grown by over 22% in the last five years (Zoopla)
• The economy of Liverpool more than doubled in size from 198 - 2016 (CityMetric)
• JLL anticipates that rents in Liverpool will rise by 17.6% by 2022 (JLL)
• Liverpool is the UK's fastest growing city centre, with the population increasing by 181% between 2002 and 2015 (BBC)
Does Liverpool have the 4 things you need to make a good investment?
1. Value for money purchase!
The regeneration in the city was started with it being named a European Capital of Culture in 2008. This brought inward investment and a wealth of opportunities to the city. Liverpool started from a low base, but has consistently built a stock of quality properties over the past 10 years. However, we still feel that there is upside potential for prices as demand still outstrips supply.
2. Inward investment
Since 2008, there have been several quality initiatives brought into Liverpool. Perhaps the most prolific of these has been the Knowledge Quarter, which is a vibrant hub that brings together a cluster of world renowned bio-medical research and science institutes.
• A Global Research Hub
• Liverpool School of Tropical Medicine
• Liverpool Science Park
• National Oceanographic Centre
• Mersey Bio Incubator
• RedX Pharma
To work in these high-tech industries and institutions the city needs people. These people will need somewhere to live.
3. Supply of tenants
The Liverpool metropolitan area has a population of over 2.24 million people. Reproduction cycles and a vibrant student body continue to swell these numbers. Due to an enviable social scene and exceptional job opportunities in the city, a large proportion of the three universities students stay on in the city after graduation.
This means there is an ever-increasing stream of young professionals looking for quality accommodation in Liverpool.
4. The X Factor
No, not the television show... Liverpudlians! The people of the city are friendly and known as Scousers after the famous "scouse" dish synonymous with the city. This, together with various social and sporting events, brings a huge influx of people to the city who require short-term accommodation.
As such, there is massive demand for short-term lettings and serviced accommodation. The occupancy rates tend to be 60% + but will need a specific management structure. Investors need to check if their property leasehold agreement permits short-term lettings, but the correct property in a favourable location can generate double digit net income.
So, whether you're looking for a place to stay in a vibrant location, above normal capital appreciation, or exceptional annual income, talk to us about LIVERPOOL property for your next investment. Check out our current portfolio here.