Why Invest in Liverpool Property?
Wednesday 1st February 2023
Why Invest in a Liverpool Property?
Liverpool is a thriving city largely scattered with terraced properties. As a student town with strong connections to London, it's a popular area for landlords to invest in. A high demand coupled with strong rents and rising house prices makes property investment in Liverpool an excellent choice.
Keep reading to learn more about Liverpool property investment, including our take on why Liverpool is a good city for buy-to-let investment and what the property market is like in the city.
Is a Liverpool Property a Good Buy to Let Property Investment?
Liverpool is a great city for buy-to-let property investment. Strong house prices coupled with high average rents and a steady annual demand ensure landlords and property investors get a good deal from buy-to-let ownership in the area. Plus, Liverpool is known for its large student community, thriving towns and strong connections to the rest of the UK.
Here are three reasons why Liverpool is a great area to invest and live in.
Large Student Community
Liverpool is known as a student town. It ranks in the top 25 for UK cities with the highest student population. Over 30,000 students enrol into the local university every year, leaving the city always open for student rent.
According to Liverpool Student Homes Statistics almost 1,000 properties are available for student accommodation in the city, with around 20,000 rooms available for rent (as of January 2023). This means that demand for rentals in the city, both pre and post-study, is continuously high, with a clear shortfall between rooms available and students studying in the city.
Thriving City
Liverpool is a thriving city full of students, businesses, and young professionals working in the city. It's one of the fastest-growing cities outside of London, with almost 90,000 working residents, according to Liverpool City Council.
Companies in the city have a low turnover of staff, with The Guardian rating Liverpool as one of the UK's "Happiest Places to Work" in the last 10 years. YouGov also ranked the area the "Friendliest City in the UK" (source).
The exceptional quality of life in Liverpool attracts countless new working professionals, students, families, businesses and investors every year. It's the birthplace of pop music, with dozens of theatres, museums and galleries, a legendary nightlife, a stunning waterfront, and the Premier Football League at Liverpool and Everton.
Good Connections to London
Besides being a thriving city, Liverpool is renowned for its strong connections to London and surrounding areas. Excellent train links and bus stations connect the city.
Additionally, the high-speed HS2 rail network is set to launch in the coming years, taking Liverpool to London in just 94 minutes. The new line will also connect the city to other areas of the UK, including Manchester, Glasgow, Preston and Wigan.
With the introduction of the new rail network, Liverpool is expected to boom in economic growth and house prices rise, just like we saw in the Southeast with the introduction of the Elizabeth Line (previously known as Crossrail).
According to the Standard, house prices in the Southeast doubled in the ten years between the introduction of the new rail network, largely impacted by the improved connections to the rest of the UK.
How is the Buy to Let Property Market in Liverpool?
Property investment in Liverpool has always been stable, with strong sale prices and a gradual rise in the value of homes in the area.
As per the latest statistics from Rightmove, properties in Liverpool sold for an average price of £208,370 in 2022. While prices were similar in 2021, 2023 prices are 12% higher than in 2020. Properties were selling at a record high during 2020, so it's clear demand for Liverpool properties is strong.
According to data from Home, average property rents in Liverpool stand at £1,106 per calendar month (pcm), which is a good price for a major city in 2023. Average rents for a room in Liverpool are a high £1,099 pcm, and range between £754 for a one-bedroom house and £1,215 pcm for a three-bed property.
Summary
Liverpool buy-to-let property investment has always been a popular choice for landlords across the UK and internationally. With stable house prices, high rents, and a trajectory of economic growth in the city, it's a great time to consider investing.
Want to learn more about property investment in Liverpool? Tuna Fish are your local property experts. Get in touch with one of our agents today for a chat about how we can help.
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