In our world of diminishing returns, diversifying your portfolio in property can be one of the best long-term investments. Property investment gives you a better return than your average bank account interest or even the stock market. But there are many factors you must consider before investing in an area; the top on the list is the location.
Location is the most crucial aspect of property investment. This is because a location influences every critical element of a successful investment, including capital growth and return on investments. With that said, if you’re looking to invest in the UK, notably Liverpool, now would be a great opportunity, given the potential for high rental yields that can be achieved with the correct guidance.
It’s not surprising that Liverpool is a leading property investment area because it is one of the UK’s most iconic cities. It is lively and features an eclectic mix of rich culture, brilliant skills, and infrastructure. All these make Liverpool a thriving UK city full of opportunities for residents and investors interested in commencing a property investment journey.
Due to Liverpool’s higher than average price growth over the past 18 months, there has been a lot of growing interest and questions about the city. Hence, in this blog post, we’ll look at 7 reasons you should consider investing in Liverpool properties and where to buy them.
7 Reasons You Should Consider Investing in Liverpool Properties
1. A Thriving Economy
Like many cities in the United Kingdom, Liverpool has experienced a massive advancement in the service sector, both public and private.
Recently, Liverpool was ranked as one of the UK’s top cities for economic growth potential. This study weighed six fundamental aspects: workforce and skills, infrastructure, business environment, place, city brand, and housing. As a result, Liverpool’s economic growth was reported fourth in the final report, ‘Investing in Britain.’
This award wasn’t just a result of the work of large corporates; Liverpool also possesses a thriving startup community with networking events, funding opportunities, and industry fairs.
In addition, the economy of Liverpool includes a wide variety of economic activities, a good number of skilled workers, and innovation that’s dedicated to science, technology and R&D.
Liverpool’s economy is already in a strong position, and with the below factors ever-growing, this is only expected to continue. This is proof that this is the best time for property investors looking for promising opportunities in the UK.
2. Affordability of Properties in the City
An area’s affordability and rental demands are understandably key factors when investing in property.
On the bright side, Liverpool is an ideal investment region for investors considering its low property prices complemented by high rental yields.
According to official government figures, Liverpool property prices are about £155,508 on average.
These prices provide a low barrier to entry for investors looking for exposure in the UK property market. Low entry prices combined with high yields, make the city of Liverpool, an attractive opportunity for investors.
3. Regeneration
Liverpool is undergoing a regeneration programme that is set to boost the economy and transform areas into bustling neighbourhoods.
No area is set to go through as much regeneration as Liverpool Waters – a 2 million square meter area of land that is being injected with £5.5bn over a 30-year period.
What is Liverpool Waters?
Liverpool Waters Development is a regeneration programme which will lead to £5.5bn being invested in 30 years from 2018.
Led by The Peel Group, this regeneration programme will transform a series of unused and derelict docks along the River Mersey into an exciting, thriving residential and commercial development with exclusive investment opportunities.
This programme includes the new home of Everton Football Club, Bramley Moore Dock and Mauretania, a 128-apartment complex brought to you by Romal Capital and Global Residential, located in the heart of West Waterloo Place.
Very few places in the UK will have such connectivity and vibrance as this spot in the next decades. With one of Europe’s largest development programmes ever, the 2.3km marine area is set to become one of the best investment opportunities for those who work with companies who can access it.
4. High Return on Investment (ROI)
Liverpool is a prime location for investors looking for an attractive combination of high growth and low risk. The city offers a variety of retail, leisure, and office spaces, along with residential developments that provide high rental returns on investments.
The area also benefits from its proximity to international airports and excellent transport links, including the M62 motorway link with Manchester Airport and railway stations at Lime Street and Central Station that connect the South.
In October 2019, Liverpool’s L1 postcode was named as having the highest rental yields in the whole of the UK, with five other Liverpool postcodes also making it onto TotallyMoney’s top 25 areas in the UK for buy-to-lets.
With Liverpool being such a thriving city with a great property ROI, investors looking to diversify their portfolio would do well to find a better city in the UK outside of London.
Nevertheless, if you invest in Liverpool, you should know that the City of Liverpool has a landlord licensing scheme. Landlords renting properties in the city may need to get a licence from the council. In this case, it would be best to speak to an expert to ensure you’re covered.
If you’d like to look at an exciting investment opportunity in Liverpool with great ROI that we have just launched, check out Mauretania.
5. Living Standard
Liverpool has something for everyone, from rich arts and culture to a vibrant and exciting club and bar scene. The city benefits from a culturally diverse population based on its location and history as a shipping port.
If you haven’t already, we would seriously recommend you head down to Liverpool’s L1 shopping centre and walk down to the riverfront – there aren’t many cities like it.
Also, being a vibrant city with a lot to offer, it’s good to know that the cost of living in Liverpool is budget-friendly. In addition, the city is close to several beaches and the Lancashire countryside, which is only a short drive away.
Liverpool has strong road connections to various parts of the North West. The quick Merseyrail trains can connect you all around the city and beyond. Lime Street Station offers a connection to several UK cities, including regular West Coast mainline trains to Manchester, Birmingham, and London. There’s also Liverpool John Lennon Airport which links the rest of the UK and Europe and includes several airlines, including EasyJet and Lufthansa. This makes Liverpool an attractive location for professionals and students alike.
What’s more, West Waterloo Place in Liverpool will be the home of a new Isle of Man ferry terminal, meaning a weekend break away from the city is only a short walk away.
To add to these, Liverpool is a thriving cultural city, well known globally for being the home of The Beatles. Speak to most young professionals who have lived in the city, and they will hold its nightlife and culture in high regard.
6. Innovation and Job Opportunities
The North of the UK, or the “Northern Powerhouse”, has seen levels of innovation unmatched outside of London. Liverpool has played a big part of this. The city is notable for many technological advancements in science and technology, including rolling out low-cost open source 5G networks and significant patents in Artificial Intelligence (AI) and the Internet of Things
To match how notably innovative this city is, there’s also a wide range of job opportunities for school and university graduates. There is something unique about Liverpool’s spirit of innovation and collaboration between different disciplines that other cities can’t compete with.
Job opportunities in Liverpool have also matched the fast-growing economy, growing at about 3.1% in 2015. The value of the city’s economy is £29.5bn, and employment reached 235,700 in 2014. Additionally, long-term employment growth is strong. It stood over the national average between 1998 and 2014, respectively.
7. Population Growth
When it comes to population, Liverpool also takes the lead as one of the UK’s most populated areas, and it has served a significant role in the Northern Powerhouse initiative. With all the rich possessions of this city, it is obvious why it has flourished into a popular destination for people looking to invest in property developments.
According to City Council statistics (2016), Liverpool has a population of almost half a million and is the 7th largest city in the United Kingdom. Liverpool includes Flintshire, Warrington, Wirral, and Chester, which contribute to a population of around 2 million inhabitants. The Merseyside metropolitan area is estimated at approximately 1.38 million.
These numbers are only set to increase, as predictions show the population could increase by 4.8% between 2014 and 2024. This is due to several reasons, including Liverpool being dominated by <24-year-olds, who make up about 33% of the population, compared to a UK average of 30.7%.
This bottom-heavy age distribution results from three huge universities in the city, with a population of about 60,000 students as of 2016.
The student population in Liverpool is more than the total population of Inverness, the capital of the Highlands. On top of this, Student numbers are growing, leaping a significant 20% between 2015 and 2016.
The increasing population in Liverpool and a growing international student community translates into higher demand for housing. When the property demand outweighs the supply, prices will rise; something we expect to see across property investment opportunities in the city.
Where should you invest in Liverpool?
Of course, Liverpool property investment is thriving. So if you’re considering investing in Liverpool, you can do so with us here at Global Residential. Being a top city in the UK with leading yields, you want to partner with a company that will keep you in safe hands – that’s exactly what we can offer at Global Residential.
We hope we’ve convinced you at this point that Liverpool is an exciting investment opportunity. Now, we will provide you with a list of the top areas to invest in the city:
Liverpool Waters
Liverpool Waters is a thriving neighbourhood that has it all and is only going to get better with time. Being a constitutive part of the Liverpool Waterfront, it is located adjacent to the iconic Royal Liver Building and Princes Dock.
Liverpool Waters is undergoing rapid transformation and regeneration following a £5 billion investment to transform the area into a world-class deep water port. The water scheme involves building a deep water terminal to create a new deep-water shipping hub for Liverpool and East Lancashire.
Liverpool Waters and Princes Dock are home to residential buildings, a multi-storey car park, and leisure facilities, which include restaurants and coffee bars, public open water swimming sessions, canoeing and scuba diving, and Malmaison and Crowne Plaza hotels, as well as excellent local connectivity.
Owning property in this area will give you access to 2.3km of waterfront and docklands, and you will also be within walking distance to the city centre, a ferry terminal and world-class sporting events.
It’s no surprise that Liverpool Waters has been so in-demand. With West Waterloo Place the flagship part of this area, investors will have to move fast to snap up properties in the upcoming developments.
Vauxhall
Vauxhall is an inner city district in Liverpool that is an advancing former dockland area famous for the Victorian-era Stanley Dock.
Vauxhall has recently experienced massive growth due to its proximity to the city centre and excellent transport links to all parts of Merseyside and beyond. In addition, it has been designated as an urban regeneration zone by the UK government, which means that developers are encouraged to build on brownfield land that was previously derelict or unused.
Moreover, it is becoming an increasingly popular place to live thanks to its close proximity to everything that makes Liverpool great – from award-winning parks such as Stanley Park, Sefton Park and Crosby Beach to museums including Tate Modern and The Beatles Story Museum.
This easy connectivity to major employment and entertainment areas makes Vauxhall attractive to property buyers and investors alike. It has a rental yield that can start from 5%.
Liverpool City Centre
Liverpool City Centre is an area with a mix of economy, culture, and history. It has a progressive population of around 36,000 and is regarded as a dynamic area that interests tourists and locals.
It is an exciting area because it is home to several museums, including the World Museum Liverpool, art galleries, and two out of Liverpool’s three universities. Additionally, being so well-developed and having extensive shopping options, Liverpool City Centre is a good option for property investment.
It boasts vibrant and diverse nightlife because of the concentration of pubs, bars, and clubs. Plus, the transportation connectivity is top-notch; there are numerous bus stops, railway stations, airports and seaports. So it is no wonder the City Centre/L1 postcode offers one of the highest yields in the UK.
With so much potential comes much opportunity to miss out. To mitigate the risk and land a solid investment opportunity in and around Liverpool City Centre, working with a leader such as Global Residential will put you in the right place.
Kensington
During the 2001 Census, Kensington had a population of 12,740 and is predominantly occupied by Victorian terraced houses. A significant number of local shops, stores, and supermarkets make it economically active.
This area boasts several traditional Liverpool Pubs and is the home of the historic Deane Road Jewish Cemetery. The Knowledge Quarter of Liverpool, Kensington, has progressed into a famous student quarter consisting of the University of Liverpool and Liverpool John Moores University students.
Areas in the Northwest of Kensington have streets named in honour of the Beatles. This history, in combination with lower-than-average property prices, provides a low barrier for entry for overseas investors.
Toxteth
Toxteth is an inner-city area of Liverpool in the historic county of Lancashire and the ceremonial county of Merseyside. This community is famous for the various art facilities specifically created to provide young residents in the area with a range of sports and activities.
This area’s architecture is beautiful; grand Georgian terraces add to its appeal for families and students alike. With rental yields in Toxteth reaching over 6.3% and the area being extremely culturally diverse, this makes for an excellent investment opportunity when the right properties arise.
Anfield
If you’re an investor with the hopes of getting up to 7% ROI and are interested in purchasing a buy-to-let property in Liverpool, then Anfield is a solid option.
Anfield is a suburb of Liverpool, England, in the Liverpool City Council ward of Anfield. It is located a couple of miles north of Liverpool City Centre. The population was 14,510 in 2011 and now far exceeds that.
Anfield is most famous as the home of Liverpool FC, a club that has been home to some of the greatest players and managers in English football, making it popular with tourists and professionals. It is one of the hottest postcodes in Liverpool, as prices are low and yields are high, which is why many investors and agents have been drawn to the area.
To top it all off, Anfield is a target for regeneration funding, with Liverpool FC and Liverpool City Council teaming up to pump hundreds of millions of pounds into the area. With hundreds of homes already surrounding Anfield stadium and the next regeneration phase underway, Anfield is already reaping the rewards.
Anfield, Liverpool’s L6 postcode, has a mix of housing, both terraced and semi-detached, giving plenty of options for investors at most levels.
You could also use a property to start a self-storage business, which you can make more efficient with self storage software.
Conclusion
Liverpool is on the rise with new infrastructure investments and business ventures. There are plenty of reasons to consider purchasing a property in the city—low prices and high rental demand and yields in many city areas. Learn more about maximising your investment in Liverpool by getting in touch with the Global Residential Team today.
