Property investment in Liverpool has seen a major influx of investors over the last 10 years , initially within the student accommodation sector thanks to the large student population of over 60,000, in addition to the multi-million pound face-lift and the large amount of Irish migrants who use Liverpool as a Gateway to the British mainland. The rental yields are among the highest in the UK, with student properties offering Minimum Assured Net Yields of 9% for 3 years. Between 2009 and 2014, private sector jobs increased by 13,500 (8.1%) in Liverpool, a great indication that private companies and not just government funds are fuelling the region’s growth. Between 2002 and 2015, Liverpool’s 47% growth in resident earnings was significantly higher than the Core Cities (38%) and Great Britain (36%) averages, increasing its residential property market significantly.
Yearly population growth in Liverpool continues to ensure the longevity of residential property demand in the area for the foreseeable future, and further to this the Cities Tourism has generated over 49,000 jobs over the past few years further ensuring its commercial sector.
The Universities also have plans to expand as University of Liverpool is investing £600 million in its facilities as part of its commitment to providing a world-class student experience and research environment. With stress already placed on student housing at an occupancy rate of 98% or higher in current accommodation, this is only set to catapult demand for student property even further.
Liverpool benefits from a number of high yielding investment markets, most notably its student property sector. With over 60,000 students across 4 Universities its economy has much to be thankful for, with factors including, student population, a £950 million regeneration project completed in 2008 and not surprisingly the Beatles legacy alone is worth around £82 million to the Scouse economy.
The city takes its name from an element known as a pool (a geological feature of the land) and an ancient mythical creature the ‘Liver Bird’, which can be seen sitting atop the world famous Liver Building, situated between L1s major regeneration zone and the famous Albert Docks. Originally famous for importing goods from around the world such as fine wines it was also famous for its strikes during the Maggie Thatcher rein of power, which was Liverpool’s darkest financial hour. 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 power house it once was for the British economy.
Liverpool has managed to attract more foreign investors than any other period in its history as the city is weeping with growing pains due to both a booming student and residential population surge. With the inclusion of its Tourism, Student and Residential sectors Liverpool can boast a triple crown in property investment.
Liverpool’s two largest Universities are set within walking distance just South of all the major developments In Brownlow Hill. With The University of Liverpool being part of both the Russell group of outstanding Universities and the even more exclusive title of a Red-Brick University, (the first red-brick University). 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, in addition Liverpool has 2 more Universities, totalling 4 institutes of higher education. Between these Universities there are 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, with what seems to be an equal mix of ethnic families and student accommodation. Currently the largest residential campuses owned by the University of Liverpool are situated outside the regeneration zone and requires bus trips into town, these are halls designed specifically for first year students only. This has paved the way for private investors to accommodate everyone else over their educational period of 3-7 years. 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 that Liverpool is still saturated with students.
Currently 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 not cause any stress.
This area of Liverpool is located between the Major University of Liverpool campus and the popular concert square nightlife area. The area has living accommodation for all budgets and benefits from not only the nearby L1 developments but also has the famous and quirky Bold Street shopping street, where many festivals, exhibitions, and celebrity public showings are carried out on a regular basis. 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.
Interestingly the Area was never part of the 2008 regeneration, it is instead the desired outcome of the project, and shows the success of what is considered a new Liverpool. It is not a large area, but is perfectly situated and 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.
Smothered in history Ropewalk’s most famous landmark is the correctly named, Bombed out church, also once Liverpool’s Cathedral, this venue was bombed during the 2nd World War and is now host to a number of events, including festival, movie nights and religious gatherings. It has contributed to the diverse culture which has been a catalyst for the areas huge economic up-turn.
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.
Of the estimated £950 million renovation Liverpool 1 saw £500 million of this money. In our opinion this is one of the most successful investments ever. The shopping centres include Cinemas, Crazy Golf, Restaurants flagship stores for both John Lewis and Debenhams as well as a the 5th Largest open air shopping centre in the UK. As a highly sort after area investors have taken advantage of all residential space available in the immediate area.
Derelict buildings in the immediate area have disappeared completely over the last decade, being either converted or demolished to make room for higher yielding property. Although L1 itself is already fully renovated and room for new developments is extremely limited it is directly responsible for the acceleration in growth for the entire city, as it allows the city to support a commercial population which it has never been capable of supporting. The largely pedestrianised area also means that pedestrian traffic is at record levels with extreme density, having huge impacts on all commercial properties, leading to more jobs and thus more residents.
Liverpool has a strong economy with an estimated worth of around £121 billion.
With over 14370 separate businesses spread across Liverpool in a vast variety of industries it is no stranger to diversity, and relies not on one sector alone but is intelligently supported by all businesses and investment sectors. This gives a security the city never had in 1980s when the collapse of one industry meant the cities economic reputation simply crumbled.
The decade run-up to 2008 saw Liverpool GDP rise rapidly, this was due to the pending plans of its famous £950 million investment, which made parts of Liverpool virtually unrecognisable. The promise of new opportunities and a new face lift drove investors to the area. The sudden drop immediately after 2008 was a double hit from both the recession and more importantly the fact that the regeneration had been completed and property prices went up as a whole. It did not take long for the trend to continue on its course as wealthy investors could see the lasting positive impact the major project has had on the area. The evidence for this is obvious from its yearly GDP, performing with solidarity year by year.
The area round L1, L2 right through the student areas spanning around 10 square miles are peppered with new build developments, with a large focus on post-graduate and international student living, all who are willing to pay above the average price for more luxurious living as many are missing out and living together in emergency accommodation. 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. It also had a darker but very interesting set of museums including its Slavery and Maritime museums, all of which are highly recommended places to visit. If this was not enough history for you then around town you can find old theatres and even a nightclub which was once home to slavery auctions.
Competition on new builds in Liverpool are fierce as each one strives to offer better living than the next, with an extremely high young and trendy population apartments are becoming more desirable than homes. 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.
As a result of the new living lifestyle brought about by the revival of the city the commercial and industry economy has also benefited, with its young population it is focusing heavily on knowledge intensive sectors, these include such things as Life sciences, Creative and digital, Advanced Manufacturing and Financial & Professional services. These changes have been implemented largely thanks to its high Student Population spread across 3 Major Universities. The Liverpool City Region report has outlined a number of key areas and specific industries it wants to see succeed, naming several companies it wants to see establish themselves within the City, these include FabLabs and Daresbury SIC. Along with these new plans there are also plans put forward by MediaCity as Liverpool has already seen success in these areas such as a popular media/cinema venue and quirky exhibitions and museums spread throughout the city making it the most filmed city in the UK outside of London. This is an ambitious plan which aims to generate nearly 60,000 additional jobs by the early 2020s.
Liverpool was crowned UK capital for fast-growth firms, with the highest proportion of new businesses succeeding, having more new successful businesses than London. There are now as many if not more high-growth businesses in the UK as there were during the dotcom boom in the early 2000s, as reported by the Enterprise Research Centre (ERC). 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 and the Google campus companies.
Liverpool’s total population is still recovering from the 1980s, however with the GDP on a sharp rise this balances out its total worth to the UK economy. One major factor in Liverpool’s rise in population is that of Irish migration, for over eight hundred years Irish migrants have been making the short trip from the Belfast area and this continues today, as a recorded 600,000 people cross the Irish sea into Liverpool every year, with an estimated Irish born population of 83,000.
Liverpool is a key player for the Northern Powerhouse (the wider plan set by the UK government to make North England a international leading economic powerhouse to rival London). With Liverpool being 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 means now is certainly the best time for anyone looking for Property Investment in Liverpool.