Liverpool's Rental Market: Why 2022 is Set to be an Explosive Year
Like an athlete at the peak of their career, Liverpool blazed past the finish line in 2021 and left its competitors in the dust.
The Merseyside city experienced a record-breaking year in its property market that saw house prices rise faster than any other UK city.
But while past growth is all well and good, it’s the future that we truly care about.
And 2022 is set to be an explosive year for Liverpool’s already thriving rental market.
Rent to Soar in 2022
While the current average rent in Liverpool falls short of the UK average, this may not be for long.
Rent values in Liverpool finished the year at an average of £978 PCM, according to Zoopla – £82 below national figures.
However, real estate company JLL and Oxford Economics have recently outlined their 2022 market predictions for Liverpool’s rental market:
And it’s an exciting read for landlords.
According to the residential market report, Liverpool will see its rental values rise by 3% in 2022.
Want to know the best part?
This is 0.5% higher than the UK average and is on par with popular cities like Leeds.
Rent will continue to grow each year, too, with an average yearly growth of 2.6% by 2026.
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House Prices to Continue Rising
House price growth is one of the most important measurements for property investors.
By buying real estate in an area with high price rises, landlords can set themselves for a huge profit when they decide to sell up.
Liverpool’s property price growth has soared far higher than any other UK competitor, and this may continue in 2022.
According to the same report from JLL, the city of Liverpool will see house values rise by an additional 5% in 2022 – on par with the UK average.
This may be a conservative estimate if the last year has anything to say about it, with official Land Registry figures showing Liverpool homes increased by 14% in value in 2021.
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Regeneration Leading to Higher Rental Demand
Investing in a city with no demand would be pretty pointless, wouldn’t it?
Well, thankfully for investors, Liverpool generated some incredible demand across the last 12 months – and this will also continue in 2022.
Liverpool’s regional population has been rapidly on the rise over the last six years, with now 75% of the city centre population aged 17 to 29 – a key age group for renters.
Attracted to world-class employment opportunities, there’s been a strong increase in available renters over the years, with this likely to continue thanks to regeneration.
Liverpool is one of the biggest urban regeneration areas in the UK, with around £14 billion spent, or being spent, on boosting the quality of living in the city.
This includes the incredible £5.5 billion Liverpool Waters project, set to transform the iconic docklands into a bustling residential hotspot.
With so much ongoing in the city, renters from across the UK will continue to descend on Merseyside for the foreseeable future.
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Where Should You Invest in Liverpool?
While predictions for the entire city are excellent, some specific Liverpool property investment areas are set to hit even higher heights.
Chief amongst these areas is Liverpool city centre.
With a massive population of students and young professionals, the city centre is the perfect place to capture rental demand in the city.
The likes of the Knowledge Quarter and the Baltic Triangle have been a hotbed for regeneration and are expected to see the biggest price rises in the city.
If you want to maximise your investment potential, then these areas should top your list.
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