Liverpool is proving itself a great city for investors. Ever more people are turning away from the capital’s slowing market to property in the undiscovered jewel of Merseyside as investors are leaving London for Liverpool investment opportunities. Here we look at what it is about Liverpool that is pulling investors away from London.
Liverpool has great potential for high yields. Over 22% of the city’s housing is owned by private landlords that can achieve up to more than 7% in rental yields – more than double that of London. As more people move to Liverpool in search of a city with a similar atmosphere to the capital but with a better quality of life, demand for rental properties will only likely increase creating more Liverpool investment opportunities.
Strong Price Growth
Although Liverpool struggled after the 2008 financial crisis, since 2015 house price recovery has been strong and looks set to continue. According to YouMove, the average house price in Merseyside grew by 8% during 2017/2018. However London saw an average fall of 2.6%.
Investors put off by the high property prices in London are in luck. According to Rightmove, the average house price in the capital is still exceptionally high at £743,930. Whereas the average price in Liverpool is only £161,277. Terraced houses are Liverpool’s best sellers at an average price of £111,256.
Liverpool has numerous higher education facilities attracting a large student population. There are currently over 60,000 students in Liverpool. Only set to rise this is. Due to this high student population there is much interest in developing purpose-built student accommodation in the city. This presents a reliable investment opportunity as students continue to flock to Liverpool.
There are currently various multi-million pound regeneration projects underway in Liverpool. The Docklands area will especially benefit from these. This is because high-quality, affordable and well-designed residential developments are set to be created in the area. Although the regeneration projects will make the entire city more attractive, the docklands area in particular will be in the most demand and is somewhere to keep an eye on.