Why Should You Invest in Student Property Liverpool? (5 Reasons) 

If you know anything about property investment, it may not surprise you to hear that Liverpool is likely the top investment location in 2023. 

After all, with considerable property price growth over the last few years outweighing the likes of Birmingham, Leeds, and London, Liverpool has continued to deliver huge returns for rental property. 

But is this the same for the student market? 

Thankfully, Liverpool student investors are seeing some of the highest returns in the UK, with the Merseyside city renowned as one of the best places to invest in student property.

There are five good reasons for this, which we will go into detail in the following section. 

These five reasons you should invest in student property Liverpool are: 

1. Highly Affordable With Significant Returns Available 
2. Five Excellent Universities 
3. Huge Student Population Generating High Demand 
4. Legendary Nightlife Scene 
5. Incredible Employment Opportunities Leading to Massive Graduate Retention 

Let’s look at each reason in-depth. 

1. Highly Affordable With Significant Returns Available

Undoubtedly the biggest attraction of student property investment in Liverpool is the city’s thriving property market. 

Currently, Liverpool is one of the most affordable locations in the UK. 

According to the latest Land Registry data, the average Liverpool property is valued at just £162,259 – almost £100k below the UK average. 

This is reflected directly in the student investment property Liverpool market, where it is common to see premium student investment property for sale in Liverpool for less than £100k. 

While property prices are low, rental yields are high, with premium facilities boasting comparatively high rental returns. 

For instance, Liverpool is home to the highest yielding postcode in the UK, according to TotallyMoney, which reports that the city centre postcode of L1 can generate returns upwards of 10%. 

It’s not uncommon to see purpose-built student accommodation for sale in Liverpool generating returns upwards of 8% NET. 

However, what sets Liverpool apart truly from the rest is its capital appreciation potential. 

In the last year alone, Liverpool property prices have increased by a staggering 15.74%. This is double the UK average! 

With property prices expanding at an unprecedented rate, and with predictions of a 11.7% growth by 2027 for Liverpool – the highest prediction in the UK – this is both good and bad news for investors. 

The good news is that investors will see higher returns than they ever have before in the coming years. 

The bad news is that with increasing house prices, the time to act is now before prices get even higher. 

Luckily, this is where RWinvest can help. Skip to the final section of our guide to find the latest available student investment property for sale in Liverpool. 

2. Five Excellent Universities 

It’s very rare for a city to offer three world-class universities, never mind five, but that’s what Liverpool has to offer students. 

Home to the University of Liverpool, Liverpool John Moores University, Liverpool Hope University, Liverpool School of Tropical Science, and Liverpool Institute for Performing Arts, students are spoiled for choice in Liverpool. 

The main headline university is the University of Liverpool which is part of the prestigious Russell Group and continuously ranks among the top 200 best universities in the world.  

However, Liverpool John Moores University is quickly emerging as an attractive choice for students. 

In fact, LJMU was the first university to receive two commended judgements from the Quality Assurance Agency, which reviews how a university meets the standards of UK higher education.  

Due to these universities, it’s unsurprising that Liverpool ranks 22nd in the top 200 student cities in the world! 

Major campuses for LJMU, University of Liverpool, and Liverpool School of Tropical Science are all focused around the £2bn regeneration zone, the Knowledge Quarter, making the area a smart student property investment location in Liverpool. 

3. Huge Student Population Generating High Demand 

Liverpool’s vast and growing student population is one of the many reasons to get excited about its property market and investment opportunities.  

With more significant numbers than the likes of Leeds, a rival city in the property investment market, Liverpool boasts a student population of over 70,000. 

Liverpool also has one of the largest Chinese student populations of any city in the country, making it a prevalent student accommodation investment choice for international investors. 

This international student population is significant for investors, particularly those looking to invest in purpose-built student accommodation.  

Around one in five students studying at the University of Liverpool are Chinese. 

According to a report in Savills, Chinese students are around 2.2 times more likely to stay in high-quality purpose-built student accommodation than domestic students.  

This is likely due to Chinese students having wealthy parents to provide for them. 

For this reason, purpose-built student accommodation can an incredibly lucrative investment in Liverpool. 

It gets better, too, especially when you factor in supply and demand. 

Across the UK, there is a significant lack of available supply to meet the high levels of demand seen for student property. 

Full-time students reportedly outweigh available bedrooms by 3:1. 

This is great news for Liverpool student buy to let investors, as a growing tenant base means that they will be in with a better chance of retaining tenancy in their property and thus making a consistent income from rental payments. 

4. Legendary Nightlife Scene 

While investors themselves may not be interested in the nightlife opportunities on offer in a city, it is still a vital measurement to consider. 

After all, nightlife and lifestyle are a major part of a student’s thinking when choosing a university city, so it’s important to assess these options to see if a city will be popular for students. 

Luckily for those interested in student investment property in Liverpool, the Merseyside city has one of the most iconic nightlife and lifestyle opportunities in the UK.  

Thanks to Liverpool’s varied and diverse approach, there is something for everyone. 

For the more cultural student, the world-class National Museums Liverpool offers seven top destinations. Likewise, the Tate Liverpool and Liverpool Empire Theatre is available for students who love the arts. 

Students looking for a place to eat are also spoiled for choice. With famed restaurants dotted across the city in places like Liverpool ONE, Bold Street, and more, there is a range of affordable and delicious food spots to pick from. 

Lastly, Liverpool’s excellent nightlife scene is a major attraction for students.  

With excellent clubs and bars found in the city centre, Lark Lane, and the Baltic Triangle, students will find some of the most affordable and fun-filled nights possible. 

It’s no surprise, then, that Liverpool was voted the best city for nightlife in the UK. 

The Merseyside city was also voted the 2nd best student city in the UK. 

5. Incredible Employment Opportunities Leading to Massive Graduate Retention 

Employment is a huge component behind a city’s appeal to students. After all, the main factor behind achieving a degree is to get employed. 

Not only this, though, but part-time jobs are also vital, as many students often rely on them to get by. 

Thankfully in Liverpool, the city is bustling with world-class employment opportunities for both graduates and students. 

In July 2020, the Liverpool city region was voted in the top 10 international locations for business start-ups. 

Interestingly for graduates, the bulk of these businesses are found in high-skilled and high-paying sectors. 

Notably, the majority of these businesses are focused on the Baltic Triangle and the Knowledge Quarter, which are two of the most exciting and renowned clusters for tech industries in the world. 

The Knowledge Quarter, for instance, is renowned as a global research hub and is home to the likes of Liverpool Science Park, The National Oceanographic Centre, Mersey Bio Incubator, and RedX Pharma.  

Regeneration is significant in the year, with over £2bn worth of investment in the pipeline. The nearby Paddington Village, for example, features the world-renowned Royal College of Physicians in their new headquarters, The Spine. 

With billions more in the pipeline in Liverpool, these employment opportunities will only continue to expand, further attracting students to the city. 

Currently, Liverpool has the 7th best graduate rate in the UK and is better than the likes of Oxford and Cambridge. 

The city is also the 6th most employable city for graduates, creating a recipe for success for Liverpool student property investors.