Rents for Liverpool Apartments Soar by Up to 12%
An in-depth analysis conducted by City Residential Estate Agents has uncovered a surge in residential rents within Liverpool’s city centre, with annual rates skyrocketing by 10% to 12%.
This newfound data in City Residential’s quarterly update on the city’s residential market indicates a significant shift in the local rental market for buy-to-let investors.
City Residential Managing Director Alan Bevan stated that this rent spike is attributable to a massive demand from tenants – a trend that shows no signs of abating.
These soaring rates markedly surpass the national averages recorded by the Office for National Statistics, which reported a 5.1% increase in average private rents across England during the 12 months leading up to June 2023.
Read on to see how this affects buy-to-let in Liverpool.
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Renter Behaviour Good for UK Buy-to-Let Investors
Alan Bevan, City Residential’s Managing Director, highlighted a distinctive pattern among tenants who secure apartments in one of the UK’s most desirable cities. Once settled, they are reluctant to move, and the majority consistently meet their rent obligations promptly. Bevan remarked, “There appears to be no letup in demand nor the willingness (though necessary) to pay the higher rent.”
This trend seems to favour landlords. Notably, the majority of tenants are displaying a readiness to remain in their properties for more extended periods. This contributes to minimising void periods and costs during the transition between tenancies.
Remarkably, the report shows arrears are reaching all-time lows, even amidst the affordability challenges in the UK. Tenants know the importance of ensuring consistent and timely payments, particularly in a market where a move to another property is likely to increase monthly rent substantially.
With high demand and low supply, tenants simply want to avoid having to move home.
According to Bevan, “Those landlords who can buy cash or have no debt can take advantage of the rise in rents on their current portfolio and look forward to the possibility/likelihood of rents outpacing general inflation.”
“They are also able to take advantage to increase their portfolios after the fall in capital prices that we have seen and any landlords who are selling.”
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How Does Liverpool Compare to the Rest of the Country for Buy-to-Let?
With rents increasing in Liverpool city centre, buy-to-let investors may be tempted to purchase properties there.
But how does Liverpool compare to the rest of the UK?
For one, Liverpool property prices offer much better value than the national average.
HM Land Registry’s price report puts the average Liverpool property valuation at £177,224. In contrast, the UK average is a much higher £289,824.
With rents rising, landlords can expect huge potential rental yields in Liverpool city centre. According to our research, the three Liverpool city centre postcodes (L1, L2, L3) offer average rental yields between 6.50% and 15.11%.
With rents rising by 10%, landlords can expect those yields to improve even more.
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