Buy-to-Let Liverpool Overview
Are you considering investing in buy-to-let Liverpool property? Liverpool is one of the most famous cities around the world thanks to its cultural heritage, even being named the capital of culture in 2007. Fast forward to today and the city is one of the fastest growing in the UK when it comes to buy-to-let investment.
Thanks to significant investment into regenerating the city over the last decade and beyond, Liverpool is now home to a thriving economy spurred on by its young and growing population. With more and more people flocking to the city for the countless opportunities, there has been a massive increase in demand for rental properties – resulting in an extremely prosperous buy-to-let market.
Buy-to-Let Liverpool Market:
House Prices in Liverpool
House prices in Liverpool have increased substantially in the last few years. According to HM Land Registry, prices increased by 10.7% in 2021, followed by a 14.1% increase throughout 2022, equating to a 26.3% cumulative increase over the last two years.
Despite this impressive growth, house prices in Liverpool remain far below the national average, resulting in an extremely high potential for capital appreciation in years to come. JLL forecast that house prices in the city are set to increase by an impressive 11.9% in the next 5 years, above the national average of 8.9%.
Rental Market in Liverpool
The rental market in Liverpool has experienced a huge boom in recent times. Local estate agent, City Residential, stated that the market continued to surge in the final quarter of 2022 as rents increased at a strong and steady rate thanks to a slowdown in supply and a huge increase in demand. Rents in the North West increased at a faster rate than all UK regions other than the East Midlands in 2022, with Liverpool a major driving force in this growth.
Rents look set to continue in a similar vein in the coming years, with JLL forecasting an impressive 3.5% increase in 2023, followed by consistent growth in the following years resulting in a cumulative growth of 15.9% in the 2023-27 period.
Buy-to-Let Liverpool Stats
In the 12 months to November 2022, house prices in Liverpool increased by 13.2%. (HM Land Registry, 2023)
Rental values in Liverpool are forecast to increase by an impressive 3.5% in 2023. (JLL, 2022)
Liverpool City Region is a £32bn economy – measured
by Gross Value Added. (Liverpool City Region Combined Authority)
In the last decade, Liverpool has added over £6bn to it’s economy against the backdrop of the recession. (Liverpool City Region Combined Authority)
A City of Culture and Regeneration
Ever since its year as the European Capital of Culture, Liverpool has experienced extensive regeneration throughout the city and will continue in this vein throughout the foreseeable future. The city is currently undergoing a series of transformational developments and regeneration projects that will transform Liverpool well into the 21st century.
Developments such as the Liverpool ONE Shopping Centre, the Echo Arena and the £5.5 billion Liverpool Waters regeneration project have all played their part in transforming Liverpool into one of the UK’s most prosperous cities, and a plethora of upcoming schemes look set to build on this impressive foundation. A massive £14 billion regeneration-led renaissance is currently underway in the city that will no doubt enhance the city’s already impressive investment reputation. The scheme will deliver 10,000 new homes, a brand new, state-of-the-art football stadium for Everton FC, a new cruise terminal, a new TV and Film hub as well as £250m of road infrastructure and 2 million sq ft of commercial office space – all of which will massively benefit both the local economy and property market.
Where are the Best Buy-to-Let Areas in Liverpool?
According to property data, the 5 best buy-to-let areas in Liverpool are as follows:
L4 – The home of the city’s two football stadiums, Anfield and Goodison Park, as well as the extremely popular Stanley Park. The average rental yield in the L4 postcode district currently stands at 7.4%.
L11 – More towards the outskirts compared to some of the other regions featured, L11 consists of the likes of Norris Green and Croxteth to name a few. Average rental yields in the area are 6.6%.
L5 – The L5 postcode district features one of the city’s most prominent regeneration schemes in the form of the new Everton Stadium at Bramley-Moore Dock. Average rental yields in the area stand at 6.4%
L20 – Moving further down the docks, the L20 postcode district is home to Bootle and Canda Dock, where numerous ferries and cruise ships visit and depart the city from every week. Average yields stand at 6.2%
L1 – The heart of the city centre, the L1 postcode district is home to Liverpool Central Station, the Liverpool ONE shopping centre and the highly sought-after Baltic Triangle. One of the most popular city centre regions, average yields stand at 6%.
Buy-to-Let Liverpool FAQs
How much deposit do you need for a buy-to-let in Liverpool?
Buy-to-let deposits in Liverpool can vary massively, depending on a number of features. If you are buying a property with a mortgage, each individual application would be subject to the circumstances of the investor and each investor would be subject to undergo evaluations to be considered for a mortgage on the property, however, if you are buying with cash there are usually set payment plans in place depending on the property. If this is the case, you will need to get in touch with the selling agent to request these details.
Is Liverpool student property a good investment?
Liverpool is currently home to three reputable universities that host roughly 70,000 students from all over the world, creating a thriving and lively student culture in the city. What’s more, an increasing number of students are choosing to stay in the city after graduation. The potential for reliable income from student property investment in Liverpool is becoming apparent and there has been an increased demand for city centre accommodation driven by students and young professionals.