The Liverpool buy to let market has received a lot of attention over recent years. A dynamic city full of rich culture and history, Liverpool has one of the most thriving UK economies. Back in 2017, Liverpool investment prospects topped the score tables making the city the number one property hot spot, with new off-plan property developments launching around the city.
With a winning combination of low property prices and high rental yields, it’s easy to see why. Today, the city continues to outrank many other UK areas, and Liverpool postcodes boast some of the best rental yields in the country. If you’re keen to find out how to invest in property for lucrative returns, buy to let in Liverpool should be top of your list.
The Liverpool property market
The Liverpool property market is certainly thriving, with investors from across the globe making use of Liverpool rental returns. From 2017 to 2018, there was a 160% year on year increase in Chinese buyer enquiries into Liverpool investment. Liverpool’s economy has also grown faster than other similar-sized British cities. Between 1998 and 2016, the economy increased by a factor of 2.1.
Thanks to events like the 2008 European Capital of Culture and the Liverpool Giants, Liverpool has come a long way since the difficulty of the 1990s. With such affordable Liverpool property prices, many people recognise the appeal of living in this city. The average house price in Liverpool is just £130,677, which is a steal compared to more expensive areas like London, with an average of £484,173.
Not only do more people view buying property in Liverpool as an attractive option, but the city is also filled with those looking for quality rental properties. Liverpool has a large population of young people that are seeking rental accommodation in the city, which is maintaining a steady demand for those involved in investment in property in Liverpool.
Whether you’re seeking education or want to work in Liverpool, this city has everything you need. With four major universities, the student scene in Liverpool is booming. Both the affordability of the city and the buzzing start-up scene mean Liverpool is the perfect place for budding entrepreneurs.
From regeneration plans to opportunities for business and investment, this city is equally as perfect for people looking for property to let in Liverpool or those who want to invest in property in Liverpool.
What is Liverpool famous for?
Liverpool is one of the UK’s most prominent cities and is famous for a number of reasons. Most notably, the cities rich cultural heritage, significant music scene, and world-renowned football team, Liverpool FC, are some of the main qualities that put Liverpool on the map.
There’s a reason Liverpool was voted the European Capital of Culture back in 2008. The birthplace of the Beatles, Liverpool’s music scene plays a big part in Liverpool’s prominent reputation. Many other popular musicians have lived and launched their careers in this city, such as Echo and The Bunnymen, the Zutons, Cilla Black, and more. Regular music events are held in Liverpool including LIMF, Liverpool Sound City, Africa Oye, and more recently, BBC Radio 6 Music Festival.
Both the music scene of Liverpool and the thriving football scene bring in herds of tourists each year, helping the economy to flourish. According to a report from Deloitte’s Sports Business Group, Liverpool FC grew the cities economy by a huge £497 million GVA from 2017 to 2018.
Liverpool is a major tourist spot, with people from around the UK and worldwide embarking on city-breaks in the area. There’s plenty to do and see in Liverpool, with world-class shopping and new restaurants launching on a regular basis, as well as a popular nightlife scene.
One walk around Liverpool, and everywhere you look, you’ll be faced with beautiful pieces of architecture. Liverpool also boasts a wide range of art attractions, with galleries such as the Tate Liverpool and Liverpool Walker Art Gallery showcasing plenty of exciting exhibitions.
Why should I invest in Liverpool property?
Property investors should consider property investment opportunities in the Liverpool buy to let market to take advantage of high rental yields, increasing demand, and strong capital growth potential. In recent years, more and more investors are choosing to invest in Liverpool property thanks to the opportunities on offer. Rental yields for the city reach around 5.05 per cent on average, while Liverpool house prices have grown rapidly and are expected to continue rising.
High rental returns
Liverpool boasts some of the most impressive investment property for sale with the highest rental yields in the UK, and since rental yields are such an integral part of any buy to let property investment, it’s not hard to see why Liverpool is deemed a top property hotspot.
As already stated, Liverpool’s rental yields average out at around 5.05 per cent, while some Liverpool areas reach even more impressive heights of up to 11 per cent! With Liverpool being such an affordable city in terms of property prices, these yields come as no surprise, especially when paired with the increasing rental costs in the city.
Liverpool property investment is an attractive venture for those hoping to appeal to a range of different tenants. Students and young professionals make up a large portion of people seeking quality rental properties in Liverpool. With a student population of over 70,000, students in Liverpool provide a reliable stream of demand for property. Liverpool’s buzzing business scene, lively nightlife and endless attractions have also made the city popular with young professionals.
Liverpool’s city centre population is quickly growing, leading to higher numbers of young people. Research at the end of 2017 found that three-quarters of the people living in the city centre were aged between 17 to 29. More recently, northern cities like Liverpool and Manchester have seen an influx of people leaving London behind to live in the north-west. This is a trend that has contributed to the increasing population of Liverpool and helped grow levels of demand even further, bringing more property investment opportunities for buy to let Liverpool investors.
The amount of property to let Liverpool offers is causing an imbalance between the levels of supply and demand. High demand for rental properties has allowed the cost of renting to go up. This, in turn, has led to rental price growth of 2.65%. In other cities like London, rental costs have decreased by 1.12 per cent.
Strong capital growth potential
With high levels of house price growth and more and more regeneration plans being announced in the city, Liverpool definitely boasts a lot of potential for capital growth. Compared to all other UK regions, the north-west comes out on top for house price growth rates. Figures show that property prices increased at a rate of 5.6 per cent in the year to July 2018, with a continued growth of 21.6 per cent expected by 2022.
Most of the best buy to let postcodes in Liverpool city centre and nearby are sure to benefit from the many regeneration projects planned. Regeneration plans include Liverpool Waters, the new city centre neighbourhood that will transform the Liverpool waterfront. Other projects such as the regeneration of Liverpool Lime Street station and plans to renovate Anfield and its surrounding areas are also expected to help the city flourish.
The Office For National Statistics revealed that Merseyside saw a 3.1% economic growth rate in 2016 — faster than any other major city region in the country. Regeneration plans will only drive this economic growth further and improve the city’s reputation as a magnet for both national and overseas investment.
Available Liverpool Properties
Which Liverpool property investment is right for me?
There are lots of options when selecting the best investment properties in Liverpool. With students and young professionals driving the highest level of tenant demand, both these property types are a popular choice for Liverpool investments. The type of property that’s right for you could, however, depend on a number of factors such as your budget and your buy to let investment goals.
Student investment property Liverpool
The opportunities for student property investment Liverpool offers are often low priced compared to residential, while still offering great rental yields. Student property investments make a good option for first-time investors who are beginning to build their property portfolio.
The student scene in Liverpool has a lot to offer, with lively nightlife and regular student events. When choosing a buy to let student property in Liverpool, consider how close the property is to universities, bars, nightclubs and restaurants, as students in Liverpool are typically more keen to rent accommodation in a good location.
Another thing to consider when buying Liverpool student accommodation is the quality of the property itself. Today’s students are now a lot more focused on renting high-quality accommodation with a luxury edge. That’s why at RW Invest, our student buy to let properties for sale Liverpool have stylish, modern designs and features like high-speed internet.
Residential property investment Liverpool
Investors who want to expand their portfolio but aren’t interested in buying a student investment property in Liverpool are likely to benefit from residential property investments. Residential property investments in Liverpool are our most popular development type at RW Invest, all with competitive prices and high yields.
More and more young people are starting to move up north from London in recent years, with cities like Liverpool offering great business prospects and affordability. With young people struggling to buy homes of their own, the rising population of Liverpool’s young professionals has led to increasingly high demand for residential rental properties.
Those interested in residential Liverpool property investment will find that making an investment in property in a city centre location will receive the highest level of interest. Young professionals like to be close to their workplace and the city’s main attractions. To cater to this, all of our apartments are located in the best buy to let postcodes in Liverpool. If you’re interested in finding a residential investment property for sale in Liverpool, don’t hesitate to explore our range of options, with prices from as low as £55,995.
Off-plan property investment Liverpool
Aside from deciding between student or residential, when looking for an investment property for sale in Liverpool, you should also consider whether the buy to let property is an off-plan, a new build, or an older property. The majority of the investment properties at RW Invest are off-plan, meaning that they’re still in the development stages.
Off-plan properties come with a lot of benefits for buy to let in Liverpool, such as having the potential for better capital growth. This is because, by the time your property has been completed and is ready for tenancy, it could have increased in value. With Liverpool based off-plan properties, especially those at RW Invest, the potential for capital growth is already high, making this city the perfect place for your off-plan investment.
Since off-plan properties are also new builds, they’re the desired property type for a lot of tenants. This is due to aesthetic reasons as well as energy efficiency, with off-plan properties being a lot more eco-friendly than older builds. Young professionals are one particular tenant type that’s attracted to new build properties in Liverpool’s city centre that are modern, well-designed, and don’t require any maintenance or repairs prior to moving in.
What are the best buy to let postcodes in Liverpool?
The best buy to let areas in Liverpool are L7, L6, L1, L8, L3 and L5. The success of these postcodes is down to the high average rental yields, growing demand, and capital growth potential.
L7 has an average rental yield of 11.79%, while L6 boasts average yields of 11.52% and L1 follows behind at 9.36%. The postcode L8, home to the up and coming Baltic Triangle, has average rental yields of 5.8% and welcomes demand from young professional tenants. The L3 postcode has average rental yields of 7.3% and the L5 postcode offers average yields of 9.2%, providing plenty of great options for Liverpool buy to let investments.
Why do these postcodes perform so strongly?
These postcodes perform so strongly as Liverpool buy to let hotspots as properties are affordable in these areas while rental costs are rising. This is due to the fact that these postcodes are considered prime locations in which to rent property in Liverpool, helping to boost demand.
So why do people consider these postcodes some of the best to live in? There are lots of things to do and see in the best buy to let areas Liverpool offers. The L8 and L1 postcodes span throughout the Baltic Triangle area of the city – one of Liverpool’s most popular locations. Liverpool’s L3 postcode is another one to watch for 2019 and beyond. This postcode houses the Fabric District, a Liverpool area undergoing some major renovations through the Knowledge Quarter’s regeneration project. Another of the best buy to let postcodes in Liverpool, L5 boasts average yields of around 9.2%. This area will see regeneration under the £150 million scheme, Project Jennifer. Project Jennifer is set to update the area significantly.
A Guide to Liverpool Regeneration Zones
The Baltic Triangle
Once an abandoned and derelict neighbourhood, the Baltic Triangle is an example of a Liverpool area that’s experienced a lot of regeneration over the years. Located towards the south end of Liverpool city centre, £128 million has been invested in new developments in the Baltic Triangle area since the start of 2012.
The Baltic Triangle is now a hub for the creative industries, with workspaces like the Baltic Creative attracting fresh new talent to the city. New nightlife and leisure attractions are opening regularly in the area, such as the popular Camp and Furnace events venue and the Baltic Market, housing a number of great food stalls from local independent eateries. Since the Baltic area is just a short walk from the main attractions of the city centre, Liverpool’s young tenants will enjoy living in this creative and trendy hotspot.
With a further £62 million worth of regeneration currently taking place, the Baltic Triangle is definitely one to watch for Liverpool buy to let. As one of the leading property investment companies Liverpool has to offer, we pride ourselves on bringing you great new developments in the best buy to let postcodes in Liverpool. Our One Baltic Square property, for instance, is based in the heart of the Baltic Triangle, and is available to buy from £121,950 with guaranteed net rental returns of 7 per cent for one year.
Head over to the north side of the city, and you’ll find Project Jennifer – one of Liverpool’s most significant regeneration zones. Located on Great Homer Street, Project Jennifer aims to renovate the area through a £150 million regeneration programme, promoting positive social, environmental, and economic growth.
Not only has Project Jennifer helped to bring new housing and enhanced transport links to the area, but it’s also estimated to have created around 1,000 jobs for local residents. The up and coming nature of the Project Jennifer area makes it a perfect spot for Liverpool property investment opportunities.
Known for its history as the centre of Liverpool’s rag trade, the Fabric District is quickly becoming one of the city’s hippest new areas. Plans exist to revitalise the neighbourhood, making it more welcoming to the city’s residents, new businesses, and investors. The Fabric District is located within Liverpool’s Knowledge Quarter, making it an ideal spot for Liverpool off-plan investments that cater towards a young professional demographic.
What are Liverpool property market predictions?
While some parts of the UK face a degree of uncertainty, predictions for the Liverpool property market remain as optimistic as ever. With continued regeneration spanning across many areas of the city, prices and property value is set to continue increasing. Investment in Liverpool is a fantastic prospect in 2019 for investors who want to capitalise on the current opportunities available, with booming house price growth expected by 2022. The appeal of living in Liverpool is also set to continue, helping to maintain the high levels of demand for quality rental properties for many years to come. This will lead investment property companies like ourselves to continue bringing some exciting new opportunities to the Liverpool market.
Why choose RW Invest?
At RW Invest, we’re one of the best property investment companies Liverpool has to offer in terms of our selection, affordability, and rental yields. With our dedicated team of property professionals, we offer the best service to those looking to invest in property in Liverpool.
We have a track record for success when it comes to Liverpool property investment, with many of our past properties having grown in value. An example of this is with our Merebank Court apartments, which experienced a huge 63 per cent increase in value.
If you’re looking for your first or next investment property for sale in Liverpool, contact us today to inquire about our Liverpool buy to let properties and find the perfect opportunity for you.