Property Investment in Liverpool – A Guide by Aspen Woolf

Independent property experts at Aspen Woolf look at why Liverpool is popular with property investors.  

Liverpool is one of the most iconic cities in England. From its musical and sporting legacy to its famously proud community, Liverpool is a thriving city packed full of opportunity. And its future for property investment is bright, thanks to relatively high rental yields, relatively low house prices and multiple regeneration development projects.

The city has a proven record of investment opportunities and is one of the property hotspots in the UK. Here’s why…

Property investment in Liverpool affords many opportunities

City centre regeneration, a large student population a growing job market all combine to make Liverpool popular with investors. In recent years, it has bounced back from the decline suffered during the 1980s and is now a thriving cultural centre of the north. Liverpool is also one of the most important cities within the Northern Powerhouse.

Projects like the regeneration of the Albert Dock area, which includes the iconic Tate Liverpool museum and art gallery are making a big impact on areas of the city that were previously in decline.

And, according to Totally Money’s buy to let yield map, Liverpool is particularly attractive to investors looking to buy rental property. The city centre postcode L1 tops the list with a median rental value of £750, an asking price of £90,000 and rental yield of 10%. This area covers the central retail area of the city, Chinatown and the commercial district. Liverpool’s L11 postcode comes fourth with a yield of 8.67%. A total of six Liverpool postcodes feature in the list with yields ranging from 7.13% to 10%.

Further regeneration developments and plans

Liverpool Waters, another major regeneration project will create five new neighbourhoods across 60 hectares. This enterprise zone was established by the Government in March 2011, and includes its sister development project, Wirral Waters.

The development stretches for 2km along the River Mersey and is transforming the docklands with mixed-use houses, office and conference facilities. Liverpool was selected for this regeneration partly because of the speed of the city’s growth.

More than 7 million people live within a commutable distance from the centre of Liverpool. The city has increased its economic output by 39% since 2009 and continues to reap the benefit of its central location.

Major industries include professional services, retail, food processing, chemicals and car manufacturing. There is also a strong tech sector with progressive and innovative industries in Liverpool. A major project aimed at linking these industries with the South East is called the Knowledge Quarter Liverpool (KQ Liverpool). This collaborative project between key partners across Liverpool’s city region is now the base for many big names in health and technology.

Liverpool’s growing population

Liverpool city has a current population estimated at 501,600 according to the latest authority figures, with a wider region population of 1,560,100. These are based on the latest figures from the Office of National Statistics (ONS).

The city is also home to a student population of around 50,000, thanks to Liverpool John Moores University and the University of Liverpool. The combination of a growing population due to people moving to the city region for work, and the student population, naturally boosts demands for al kinds of residential properties.

According to Knight Knox, at Liverpool University alone, 7,700 students from overseas are looking for high quality private accommodation. The city’s universities collectively produce 30,000 graduates every year, many of whom decide to stay on in the city. This also drives demand for private urban accommodation that needs investment.

For example, Vincent House is a luxury 62-bed development right in the heart of central Liverpool. Positioned just a stone’s throw from all the amenities, and just a short stroll from Liverpool Lime Street station, Vincent House is also relatively close to the university campuses too. This kind of forward-thinking, modern urban accommodation is transforming the city centre. Crucially, it is also serving a changing demographic, and encouraging young professionals to live and work in this thriving city.

Looking deeper into property value and rental yields

Investors have yet more good news in that Liverpool is one of the most cost-effective cities in which to buy residential property. According to the latest figures from Rightmove, Liverpool properties have an average price of £166,884. This information is based on statistics from HM Land Registry and is correct as of 6 April 2020.

Most properties that have sold over the last 12 months are semi-detached houses, which have reached an average of £187,447. Terraced properties went for an average price of £118,349 and flats at an average price of £119,299. Prices were up 5% on the year before and 6% higher than the peak in 2017, when the average property price reached £157,491.

Liverpool’s transformation is set to continue until at least 2033 according to the Liverpool Local Plan. There is an active pipeline of regeneration projects worth £14 billion, and the investment opportunities are many and varied.

Now is the time for property investors to snap up new developments, as Liverpool maintains its high yields and affordable prices.