Liverpool is one of the UK’s biggest and most prosperous cities. As a result of that, over the last couple of decades, the city has attracted tens of thousands of private and institutional investors, who are looking to bank on the demand for rental properties.
So, if you’ve got your eyes on the Liverpool buy-to-let market, read this article until the end. Today, we’ll go over 10 reasons why investing in a buy-to-let property in Liverpool is a great idea.
10 Reasons Why You Should Invest in Liverpool’s Buy-to-Let Property Market
There are many different reasons why you should invest in Liverpool’s buy-to-let property market. In the section below, we’ll explore the seven biggest reasons that have attracted tens of thousands of private and institutional investors over the years.
Strong Demand for Rentals
The supply and demand for rental properties in Liverpool is great. What this means for buy-to-let property investors is that there is little to no chance that their properties will remain vacant. That is of course if your property is situated in a good location, the rent is within budget, and the property is in a good overall condition.
Fantastic Transport Links
As one of the UK’s major cities, Liverpool has some of the best rail and bus transportation links in the country. Residents of Liverpool can get around and reach most spots in town with ease, and without spending a ton of money. Not only that, but Liverpool is also a big market for taxis and Uber, which is great for people who want to get around faster and don’t want to rely on public transport.
Affordable Property Prices
Compared to other major cities in the UK, such as London and Manchester, property prices in Liverpool are significantly more affordable. To give you a point of reference, the average property prices in London and Manchester are £716,000 and £298,000, respectively. When we look at Liverpool, the average property price is £213,000.
Now, with that said, it also really depends on where you want to invest in a property and what type of property you can buy. Generally speaking, if you want to rent out your property to students, such a property in a prime location can vary between £150,000 to £250,000.
High Rental Yield
The rental yield for buy-to-let properties in Liverpool is one of the highest in the country. Across the city, the average is currently sitting at around 6.1% – with some areas yielding upwards of 10%. The best buy-to-let properties for high yield are student accommodation in prime parts of the city, near all the city life and the university campuses.
Potential Capital Appreciation
As the city of Liverpool continues to grow, so will the property prices. And if you purchase a property today, with where the market is projected to go, when you decide to sell, you’ll not only make a substantial amount of money from rent but from selling your property too. This is a pleasant situation that tens of thousands of investors have already enjoyed, especially those who have owned a property in the city before 2019.
Liverpool has a fairly diverse economy, which greatly contributes to its stability, even during times of recession. Some of Liverpool’s strongest sectors include finance, education, healthcare, and manufacturing. And when the economy is stable, the property market will be too.
Strong Presence of Tourists & Students
Liverpool is both a tourist and a student hot spot. According to data, Liverpool welcomed over 31.5 million tourists, which contributed over 3.58 billion pounds. And all of those tourists need to stay somewhere, meaning that if you start an AirBnB and your property is in a prime area, you can generate a very good amount of money.
The same goes if you decide to rent out your investment property to students. Currently, Liverpool is home to over 70,000 students, all of which need somewhere to stay. The great news for investors is that Liverpool is home to 7 universities, meaning there are many prime locations that you can choose from across the city.
Liverpool is home to dozens of different neighbourhoods, all of which have distinct characteristics and cater to a different set of tenant demographic. So, whether you want a property that can be rented by students, families, or young professionals, when looking to buy a property in Liverpool, you won’t have a hard time finding one that will attract the right tenants.
The city of Liverpool has seen very impressive regeneration projects take place over the last couple of years, particularly in areas such as the Knowledge Quarter and the waterfront. Investors who own properties in these areas have already seen an increase in their property prices as the areas are starting to become more appealing for residents. And the great news is that there are many regeneration projects planned for all over Liverpool, which are still to be carried out.
Fantastic Short-Term Rental Market
As a tourist and events hot spot, Liverpool has a fantastic short-term rental market. Liverpool is home to many different types of attractions, such as sporting and cultural events, sightseeing, shopping, and more, all of which attract a fairly decent amount of people to the city each year. And the great news is that all of these people need somewhere to stay.
Investing in a buy-to-let property in Liverpool is something tens of thousands of private and institutional investors have already done. So, if you’re looking for some reasons on why you should follow suit, hopefully, this article has given you everything you need to know to make a decision.
And remember, even if you decide to sell your tenanted property in the future and move on, you can do that easily as the interest for such properties in Liverpool keeps rising year after year.