Property Investment Liverpool

Voted the third “Best City in the World” in the 2019 TripAdvisor Travellers’ Choice Awards, Liverpool is the home of music and sport that can be enjoyed by its residents and tourists from all over the world.

Over the last 10 years, there has been a significant increase in property investment in Liverpool.

A student population of over 60,000 and a multi-million-pound regeneration project means that rental yields are among the highest in the UK, with student properties offering Minimum Assured Net Yields of 9% for 3 years. With a recent £600 million investment in the University of Liverpool, this is only set to catapult demand for student property even further.

Don’t be fooled by thinking this is just another student property hub either. Private sector jobs have increased by 13,500 (8.1%) in Liverpool (2009 to 2014) with resident earnings being significantly higher than Core Cities (38%) and Great Britain (36%) averages. This represents another lucrative opportunity for investors looking for long-term investment opportunities.

Yearly population growth in Liverpool ensures the longevity of residential property demand beyond the present. A vibrant tourist economy also means there is a steady flow in visitors to this hidden gem of a city.

When it comes to investment, we know that serious investors are interested in the forecasts, figures and finding the best opportunities in Liverpool. For many, it’s not a question of “should I invest?” but “how do I invest?” We aim to help you with this decision, so if you have any questions, please do get in touch and our senior portfolio managers will be happy to help. 

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Why Invest In Liverpool?

Liverpool benefits from several streams of high-yielding investment markets, such as the student property sector. With over 60,000 students across 4 Universities, its economy has much to be thankful for. This includes a £950 million regeneration project completed in 2008 and the Beatles legacy alone is worth around £82 million to the Scouse economy.

The city takes its name from the geological feature of a land, known as a pool, and an ancient mythical creature the ‘Liver Bird’, which can be seen sitting atop the world famous Liver Building.  Originally famous for importing goods such as fine wine from all corners of the globe, Liverpool also famous for its strikes during the Maggie Thatcher reign of power. But rest assured it has left behind its troubles of an era that brought about years of hardship and is now on a projectile course to become the powerhouse it once was for the British economy.

Liverpool has managed to attract more foreign investors than most other UK cities due to its growing pains. A booming student and residential population surge has created the perfect opportunity for property investors to be an important part of the journey of a city.

13%

Projected increase in property prices in Leeds over the next five years (2020-2025)

14%

Projected rental growth in Leeds over the next five years (2020-2025)

5.05%

Average rental yield in Liverpool, compared to an average of 3.05% in London

The Student District

Liverpool’s two largest Universities are set within walking distance of all the major developments In Brownlow Hill. It’s one of the only cities to cater to students of all walks of life too. The University of Liverpool is part of the Russell group of outstanding Universities and is the first red-brick University in exclusivity.. John Moore’s is the largest with the main campuses set almost within the grounds of the University of Liverpool adjacent to the Metropolitan Cathedral. Liverpool has 2 more Universities, totalling 4 institutes of higher education. This equates to over 60,000 students, most of which requiring accommodation for a minimum of 3 years each.

Student properties stretch from L1 all the way down to Penny Lane in the south. The largest residential campuses owned by the University of Liverpool are situated outside the regeneration zone and require bus trips into town, specifically for first year students only. This has paved the way for private investors to accommodate other students over their educational period. A short walk through this area towards the end of the academic year reveals the true demand, as young students are dashing around property to property trying to find somewhere to live ready for September. With such potential, you would expect private landlords to be in fierce competition. But the truth is there is still an imbalance of private landlords to accommodate the vast number of students. 

Existing student properties are a mix of old terraced housing and purpose-built apartments. But with limited land in areas closest to the University, more and more students are moving to apartments for ease of their studies and peace of mind that their accommodation will add extra stress.

The Main Areas for Investment in Liverpool

There are two main areas for student property investment in Liverpool that represent untapped opportunity for investors.

The Ropewalks are located between the Major University of Liverpool campus and the popular concert square nightlife area. It has living accommodation for all budgets and has the famous and quirky Bold Street shopping street. This all adds to the attractiveness of the area as it attracts visitors, many of whom, then fall in love with the area and reside on a permanent basis, pushing both tourism and Residential sectors. With over £150 million of renovations and over 900 new housing units all built within no more than a square mile, it gives much hope and promise for adjacent areas of the city. It is also worth noting the area is highly pedestrianised and leads directly into the Heart of Liverpool towards St Johns Beacon and the Albert Docks.

Liverpool 1 (L1) recently gained £500 million worth of renovations.  L1 is directly responsible for the acceleration in growth for the entire city. The shopping centres include cinemas, countless activities, restaurants & flagship stores for huge high street brands. As a highly sought after area, investors have taken advantage of all residential space available in the immediate area. Derelict buildings have disappeared completely over the last decade, being either converted or demolished to make room for higher-yielding property. The largely pedestrianised area also means that pedestrian traffic is at record levels with extreme density, having huge benefit on all nearby commercial properties

 Liverpool Investment Economy

Liverpool has a strong economy with an estimated worth of around £121 billion.

With over 14,370 separate businesses spread across Liverpool in a wide variety of industries, it is no stranger to diversity. It relies not on one sector alone, but is intelligently supported by all businesses and investment sectors. This gives Liverpool a security it never had in the 1980s, when the collapse of one industry meant the city’s economic reputation simply crumbled.

The area round L1, L2 spans around 10 square miles and is peppered with new build developments. A large focus is on post-graduate and international student living, all who are willing to pay above the average price for more luxurious living for sake of ease and its affordability compared to the rest of the UK. The dock areas have seen several large developments including the Arena and adjacent apartment buildings, all providing Liverpool with a luxurious lifestyle choice for occupants. The Liverpool Museums are also a recent addition to this area, with its own Tate modern, a Beatles museum, and the more popular Liverpool Museum.

Competition on new builds in Liverpool are fierce as each one strives to offer better living than the next. The young and trendy population know apartments to be more desirable than homes, given their convenience & luxury. Apartment prices outstrip terrace properties which require high maintenance and much renovation before deemed fit to live in. Much of the Victorian terrace streets are facing demolition as flats are in extreme demand.

Liverpool Property Investment Growth

Liverpool was crowned UK capital for fast-growth firms. It has the highest proportion of new businesses succeeding and having more new successful businesses than London. Fast-growing firms rose by 56% between 2009 and 2015 in Liverpool. Merseyside now has the highest proportion of these companies in the entire UK, greater than even the most popular new business areas in London such as Old Street. 

Liverpool is a key player for the Northern Powerhouse. As one of the fastest-growing and largest Northern cities, it has seen promising increases in all sectors. This bodes well for investors already with property in the area. High rental yields, growing population, and a bright economic outlook mean now is certainly the best time for anyone looking for property investment in Liverpool.

Investing in Property in Liverpool with Sterling Woodrow

Whether you are a first-time investor looking to understand your options and make the first steps towards building your portfolio, or an experienced investor looking for someone to effectively manage your investment, our team goes the extra mile to deliver exceptional service and results. 

  • Total of 75 years’ experience in the property market 
  • UK-based and international offices for home and overseas investors
  • Excellent scores on Trustpilot noting our knowledge, professionalism and return on investments

Liverpool Property Investment FAQs

Where should I buy investment property in Liverpool?

This will entirely depend on the kind of investment you are looking to make. For buy-to-let, areas such as The Ropewalks and L1 are lucrative opportunities as affluent students & professionals look to these locations for luxury apartments.

Investment Opportunities

Learn more about our investment opportunities in Liverpool and the surrounding areas including hotel rooms, student accommodation, and care homes.

Hotels

High-growth investment sector expecting to soar

Purpose Built Student Accomadation

UK’s strongest performing asset class in recent years

Care Homes

Increase in demand with an ageing UK population

Are you ready to take the next step?

To learn more about the investment opportunities available through Sterling Woodrow, contact us today.