You’ve probably heard all about the wonders of property investment – right now, it seems to be all the rage.
In the UK, property is booming, with 2021 proving to be a record-breaking year for the market.
A proven and reliable method of generating passive income, investing in property can be rather lucrative for those that know what they’re doing.
To be truly successful, you’ll need to keep a keen eye on various spinning plates.
One of the most important things is to invest in the right area.
Over the past few years, one city consistently finds itself top of the list – Liverpool.
So, why invest in Liverpool property?
Soaring Rental Yields Means Steady Profit
Liverpool has become a hotspot for property investment, offering some of the highest rental yields in the country.
In fact, some areas like the L1 postcode have rental yields as high as 10%, with an average of 5.48% – to compare, the highest rental yields currently available in London are 5.3%. Sheffield, a city similarly part of the northern powerhouse, only has an average yield of 5.29%.
This means that you will see a higher rental income than if you were to invest in other areas of the UK.
Liverpool also saw some of the highest price growth in 2021, showcasing the city’s solid capital growth and impressive resilience.
By 2025, predictions show that the North West region is set to see the highest growth rates of 18.8%, exceeding any other UK region, including London – further illustrating that property investment in Liverpool is something to rely upon.
Massive Demand for Housing
Thanks to growing population numbers, Liverpool is almost filled to the brim with those seeking quality properties to rent – which is excellent news for investors, as it means there is likely to be a steady stream of potential tenants for years to come.
Liverpool is also home to a thriving student population, with top universities like the University of Liverpool and Liverpool John Moores University located right in the city’s heart.
In fact, current estimates place approximately 60,000 students in Liverpool.
With numbers like this, of course, student accommodation makes up a large sector of the rental market.
Student properties are an excellent option for first-time investors with lower costs than regular properties.
Most students prefer new builds, and with a current lack of supply in the city, the Liverpool rental market is expected to grow to make the most of this demand.
Regeneration in Liverpool
Regeneration efforts have often been highlighted as one of the most attractive qualities a city can offer and can usually be a sure-fire sign that something is worth investing time and – most importantly- money in.
The reasoning, of course, is quite apparent: regeneration projects can typically help cause a city to boom in capital growth and rental demand.
Liverpool is no different, boasting various rejuvenation schemes that have helped catapult it into an economic powerhouse.
Millions worth of regeneration projects has been pumped into Liverpool to help turn the city into a thriving centre point of the North-West. Areas like Liverpool One have transformed the commercial district into a shopping hotspot.
The continued work in the Knowledge Quarter -a £2bn inner-city regeneration project – is particularly noteworthy for its continued contribution to the expansion of health and life sciences – one of Liverpool’s leading global strengths.
Work like this has also resulted in a significant rise in the city’s population. This is due to these efforts boosting both employment prospects and business opportunities, which has, in turn, encouraged many students and young professionals to flock to the city.
6,000 jobs are expected to be added this year, bringing the overall number to around 286,000 – a record for the city
With these new developments and massive regeneration schemes contributing to the rising economy – worth over £121 billion at this point – the city looks to continue to benefit from relatively good affordability, which will enable buyers to put upward pressure on pricing without being too financially stretched.
Why Should You Invest in Liverpool?
Well, to answer this, you must first ask:
Why should you invest in property?
When it works, it can be a fantastic way to generate a stream of consistent passive income. So long as you put the time into proper research and ensure that you have a complete idea of what you’re in for, you’ll be on your way to success.
That’s not to say that property is an entirely risk-free investment; unfortunately, one is yet to exist.
The only thing you can really do to offset this is to be as prepared as possible.
Research every aspect of a potential investment area thoroughly before making any final decision – know the latest stats and figures, and keep up to date with the latest predictions.
Why Liverpool?
The city has seen a continuous uphill trajectory, maintaining its top reputation as a property investment hotspot in 2018, 2019, 2020 and 2021 – and, no doubt, 2022 and beyond.
With its comparatively low housing prices, massive rental demand and equally high yields, Liverpool is definitely one to watch out for.
So, do your research, be smart with your money, and make sure to thoroughly investigate every aspect of an investment before diving in!
