Liverpool has gained a well-deserved reputation for being one of the UK’s strongest buy-to-let investment markets. Entry prices are affordable, and both capital gains and rental yields are strong due to a fast-growing young population looking to live in the exciting city centre. There is a lack of good-quality rental accommodation in Liverpool and this is reflected in the high rental yields available to property investors.
The strength of the Liverpool housing market rests on the city’s popularity with young professionals and students, both of which are flocking to the city in significant numbers.
Liverpool’s population stands at over 470,000 thanks to growth of more than 5% in the last decade, making it the sixth most populous city in the UK, with that figure expected to top 500,000 within the next ten years as growth continues unabated. This growth is mainly attributable to the influx of young professionals attracted to Liverpool due to the excellent lifestyle on offer which is also very affordable. The cost of living stands in stark contrast to London, and is a main driver of the northerly migration which has been noted among the UK’s younger generation. The whole of the North West has benefitted from this, especially cities such as Liverpool.
The city’s student population is also extremely large, with approximately 50,000 students spread across the University of Liverpool, Liverpool John Moore’s University, Liverpool Hope University and the Liverpool School of Tropical Medicine. Of these, six out of every ten students remain in Liverpool after graduation according to University of Liverpool figures, and the dynamism provided by these thousands of young people can be felt throughout the city.
This high rate of retention of students and the large population of talented young professionals are explained by the same factors. The Liverpool city region is home to high quality employment opportunities across sectors as diverse as advanced manufacturing (700,000 cars per year produced near Liverpool), cutting-edge scientific advancements (largest cluster of bio-manufacturers in Europe), life sciences (worth £1.7bn), low carbon innovations (worth £2bn) and creative and digital technologies (second fastest growing tech cluster in the UK). All of these types of business, plus Liverpool’s financial and services sector which is the UK’s biggest outside London, also serve a dual purpose of attracting the best young talent from around the country as well as helping keep native talent in the city.
The Liverpool region is a vital part of the UK economy, contributing over £28bn Gross Value Added, and the city will only grow in the future. Investment is pouring in from investors at home and abroad such as the £50bn which is being invested in 50 developments over the next 50 years in order to re-establish Liverpool as the UK’s premier shipping destination. The city’s population is growing in response to the increasing opportunities on offer. Quality rental accommodation is in short supply in Liverpool at present, especially near the city centre and in areas around the trendy dockyards, and the number of tenants is increasing all the time.
A growing tenant base, consistent NET rental yields of at least 5 per cent and predicted capital growth of more than 20 per cent by 2021 should interest any buy-to-let property investor.
Looking to invest in Liverpool?
Contact Knight Knox today for more information on The Tower at X1 The Quarter, Knight Knox’s latest bespoke buy-to-let opportunity in Liverpool.
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