With the Northwest forecast to have the highest growth rates in the UK, Liverpool is not only the safest, but the best place to invest in, especially for investors looking to see high ROI in the short-term as well as the long-term. Current low entry points and the economy set to see price rises is just one of the many reasons to invest in Liverpool’s property market.
1. Short-term Lets Are Booming
Investments that allow for both short-term and long-term lets enables investors to adapt to the city’s needs to produce the highest ROI. Short-term lets are going to be the smart investment in Liverpool, as the number of short-term visitors staying in residential lets is going to be increasingly popular in recent years.
With there being four universities in the city, Liverpool currently has an increasing average of over 63,000 higher education enrolments a year, meaning there is an established foundation for the short-term let market to be built upon this year. The number of enrolments a year does not include those who visit the city’s universities and do not end up enrolling, all of whom would be looking for short-term stays when they visit Liverpool. The universities in the city bring a high influx of tourism from non-students who attend events held in the universities, again all of whom are a part of the category for short-term stays.
Being the hosts of this year’s Eurovision, the city is going to see a soar in the already high number (average of 60 million) of tourists that visit the city this year, airlines have already increased the number of flights going into Liverpool John Lennon Airport to cope with the demand while making the city more globally accessible. Increased tourism in the city will result in an increase in short-term stays which is great news for investors and those looking to invest in Liverpool.
Everton’s new £500 million stadium sits nicely on the waterfront which is soon to be a new hotspot in the city. The new stadium being only a stone’s throw from the Liverpool docks will inevitably increase tourism around the docks, enabling investors in this area to capitalise on their investment. Advantage Investment currently have several properties around the docks, perfect for those looking to invest in Liverpool this year.
The city of Liverpool is already rich in history which attracts millions of visitors year on year. However, 2024 is going to create even more history, invest in Liverpool’s short-term properties and be a part of a city whose growth show no sign of stagnating.
2. Regeneration Project
Liverpool’s regeneration projects have proven to be successful in the past with the council’s £190 million regeneration of the once wasteland Baltic Triangle area, located between the city centre and waterfront, this area is now thriving and has many businesses, bars, restaurants and residential lets in the area, this location has seen the largest capital growth over the past five years and could be argued to have reached its peak, proving that the regeneration projects executed in the city pay off -now is the time to invest in the next regeneration project to see a similar return.
The city’s latest project is located in the area where the previously mentioned, new Everton stadium is under construction. With an estimated cost of £5 Billion and spanning over 2.3km the waterfront regeneration project is one of the largest regeneration projects in Europe, that many investors are keen to have a stake in. Advantage has many off-plan developments in this area that is soon to be one of the city’s hotspots, in order to take advantage of the low entry prices in this area, now is the time to invest in Liverpool’s waterfront.
3. Invest In Liverpool With Low Entry Prices
Overall Liverpool has much lower entry prices for property than the UK’s average, The Land Registry’s current data spanning across 2021-2022 highlights that the average apartment price in the UK is £224,186 whereas Liverpool boasts an average price of £129,872, not only will an investment in the city not cost as much as elsewhere but it will generate greater ROI.
Liverpool’s affordable property market and rising rental costs is the perfect storm for buy to let investors. According to The National Association of Property Buyers quoted by Liverpool Echo, house prices are expected to rise in Liverpool in 2024 – defying national predictions of a more affordable property market, showing that now is the best time to invest in Liverpool for great short-term and long-term yields.
4. Above The UK’s Average Yields
The UK property market has an average yield of 3%, Liverpool’s yields have an average of 5% across all postcodes however, city centre postcodes have seen yields as high as 10%, which is more than three times the national average and significantly higher than central London’s 3.5% average yield.
Liverpool’s property market currently has a supply-demand imbalance hence the amount of investment in building a vast amount of residential properties in the last few years. This imbalance has raised both property and rental prices contributing to the city’s high yields as the demand for residential lets continues to grow.
5. Invest In Liverpool For Overall High Capital Growth
The Northwest of the UK is set to see the highest growth rates in the UK, being forecast to have growth rates of 18.8%. Liverpool is going to be the busiest city in the north, therefore being the most sensible investment in. With the rising property prices but still having prices significantly lower than London, now is the time to invest in Liverpool.
Liverpool’s high levels of investments over the last few years totalling £7 Billion has already seen the city’s capital growth rise and it will continue to rise in 2023 and beyond. From 2019 to 2022 Liverpool saw the average property price rise by £50,000 from £171,696 to £221,779, Liverpool’s property boom is seeing prices grow up to five times the rate of London’s prices.
Investing in Liverpool would enable investors to capitalise on the city’s capital growth this year and beyond. If you would like to learn more about investing in Liverpool you can download our free guide.
If you are now looking to invest in Liverpool, get in touch to speak to one of our experienced agents, we have some fantastic opportunities available, offering 8% gross or 7% net rental assurance for a ten-year period. Reach out to one of our investment experts at +44 (0)151 433 9300 or via email at contact@advantageinvestment.co.uk.
