The Liverpool City Region has quickly become the best city in the UK for investors to make serious money on rental income and returns. The key cog in the Northern Powerhouse machine has become the most profitable rental market for landlords in the UK. Liverpool rental yields, Liverpool rental returns and Liverpool investment have become powerful magnets bringing money from home and abroad due to this wealth of investment opportunities.

Liverpool is breaking barriers and achieving important milestones as part of its unprecedented and unrivalled growth. In 2018, the city broke the £1 billion barrier in property transactions. The total spent on property sales has more than doubled in only six years. The amount spent on such purchases grew by over 125% over the period 2012 to 2018. The figure of £552 million put down by investors six years ago went over and above £1 billion this year.

The Growth of Liverpool Property Market - Liverpool City Centre at Night Image

The number of property transactions made has also spiked, with the 3,494 deals made in 2012 growing by over 100% to more than 7,000 by 2018. This means that Liverpool’s property market has a lot more variety for both investors and potential tenants. Coupled with low starting costs and high rental yields, it is not difficult to see why Liverpool is the best place in the UK to invest.

Why Invest In Liverpool?

Why invest in Liverpool? What brings money from home and abroad to this famous and historic city? There are plenty of reasons. The average rental yields in Liverpool city centre and areas such as Edge Hill, Fairfield and Kensington easily outperform buy to let returns that are found in any of the London postcodes.

RW Invest offers some of the best rental yields not just in Liverpool but across the UK with their beautiful properties. High-end, luxury developments such as One Baltic Square, Parliament Square and Fabric District Residence offers investors between 7% and 8% net rental return on their outlay. With starting costs in Liverpool proving much lower than most of the rest of the UK, investors can make a pretty penny a lot more quickly than they would in other towns and cities.

Luxury Accommodation in Liverpool City Centre - RW Invest's Fabric District Residence

The attractiveness of the University of Liverpool, one of the top 75 higher education institutes in the world, has meant that a rise in the availability and standards of the city’s student accommodation market has grown rapidly and exponentially. The ever-increasing student population of Liverpool means that demand is always on the up. The estimated total of enrolled students in the city is 70,000, and there are far more students than there are available PBSA beds.

Landlords will not only find a clamour for their properties but will soon discover that the purpose-built student accommodation (PBSA) market in Liverpool is an incredible way to get a high return on investment.

The universities of Liverpool are blessed with a high number of overseas students. In the 2016/17 academic year, the University of Liverpool had nearly 10,500 overseas students registered. The majority of these were from China. International students are very likely to stay in properties for the duration of the study courses, rather than chopping and changing every term like their domestic contemporaries.

Liverpool University - Study Place of Many Overseas Students

Low Prices and High Yields are Great For Investors

It isn’t just Liverpool postcodes and rental properties that are proving to be a boon for buy to let investors. As well as being one of the UK’s buy to let hotspots, property investors will be heartened by the low average house price of a Liverpool property when compared to other areas in the country. Acquiring a buy to let mortgage on a residential house property in the city would allow you as an investor to take full advantage of Liverpool yields.

In Liverpool and the broader North West region, house prices have surged by 5.6% in the last 12 months. Such growth is in stark contrast to London. Property prices in England’s capital city fell by 0.7% in the same period.

There was a rise of 0.9% in rental prices over the 12-month period to August 2018. Again, the prosperity of Liverpool contrasts with London. The capital took a 0.3% hit on its rental rates in the same timeframe. London is becoming less of a viable proposition. For such high property costs, the yields must justify the outlay. Unlike Liverpool, London cannot do that.

One of Liverpool’s greatest attributes is its rapid population growth. From 2002 to 2015, Liverpool city centre enjoyed a massive 181% surge in its population, the majority of whom are students and young professionals. These two demographics make up the most significant number of those deemed to be part of ‘Generation Rent’. These 20 to 29-year-olds are most likely to seek rental properties and for much longer terms than in the past and than current generations. For investors, this means higher returns over a more extended period.

The Regeneration of Liverpool

Last, but certainly not least, Liverpool’s place at the UK property investment top table looks assured for years, if not decades, as extensive regeneration projects flourish and take effect.

The £5.6 billion Liverpool Waters scheme will revamp and transform the city’s waterfront with one of the UK’s most ambitious regeneration projects. Project Jennifer will convert the previously neglected area of Anfield into a brand-new haven for retail, commerce and residential properties. The work being undertaken on the city’s ports will welcome even more visitors to an already popular tourist destination.

Buy to let investors would do well to heed the advice contained within. Liverpool is the best city in the UK for rental returns, and there is no better time to invest than right now.

Liverpool Waters Regeneration Scheme CGI
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