A city in Merseyside whose fortunes have been inexorably linked to Shipping, Liverpool is showing many reasons why this should be considered one of the strongest investment areas outside of London.
Railways, transatlantic steamships, municipal trams, electric trains, were all pioneered in Liverpool as modes of mass transit. In 1829 and 1836 the first railway tunnels in the world were constructed under Liverpool.
Liverpool’s economy is one of the largest in the UK, sitting in the middle of one of two core economies in the North West. After a period of decline Liverpool’s economy has seen a revival recently with it’s GVA increasing 71.8% between 95’ and 06’.
In 2008 Liverpool gained the title of European Capital of Culture, with tourism bringing in circa £1.3bn a year.
With a new Football Stadium being built and the echo arena and Liverpool one recently completing, the future looks great for Liverpool.
In the last year, the majority of property sales were terraced houses with an average value of £103,000. Semi Detached sold at an average of £161,000 and flats averaged at £115,000.
Liverpool’s average price overall was £144,000.
Prices rose 5% last year compared to the previous year and were 3% up on the 2007 level.
Over the last 10 years, Liverpool has constantly been in the top 10 for buy to let hotspots in the UK, mainly buoyed by low property prices and a rising demand for rental accommodation.
Yields of between 7 – 12% dependent on whether you are investing in the city center or whether its student accommodation is an average. Many student accommodation investments now come with rental assurances. Beware of these as they need to be backed by a profitable company that cannot be dissolved at the developer’s pleasure.
Massive investment into regeneration areas has seen huge amounts of professionals flock to Liverpool. With under 60% of the homes actually being built this has been reflected in rental income. Landlords are now receiving some highest returns on record.
The national housing federation has forecast that growth in private rental costs in the area is due to reach 22% by 2021.
With 3 major universities, a low cost of living and plenty of part time jobs, Liverpool is a mecca for students.
The University of Liverpool, John Moore’s University and Liverpool Hope University have over 75,000 students between them, add this to the fact that all Universities mentioned have plans to expand in the future and you have a melting pot for student accommodation investment.
With an average of 60% of student staying on after their education finishes, Liverpool is growing at a tremendous rate, boosting businesses in the area and demand for smaller starter units.