For beginners and experienced investors alike, Liverpool maintains a reputation as one of the UK’s best cities for property investment. From a thriving economy to high rental yields, there are several ways in which Liverpool outranks London when it comes to buy to let investment. Take a look at these five reasons you should look up North for your next property venture.
Affordability
It goes without saying that London isn’t one of the most affordable cities in the UK. The average price of a property in London is around £484,173 whilst Liverpool stands at £130,677, making the decision a no-brainer for investors who want to buy property but don’t have a high enough income to invest in England’s capital city. While the cost of buying properties in London is high, the city is also notoriously costly to live in. It is for this reason that more and more people are choosing to leave London and move up North.
High rental yields
It is not only high property prices that investors can expect from England’s capital, with the average rental yield in London standing at a disappointing 4.05%. When compared to the Liverpool average of 5.05%, it is evident that a Liverpool property will offer the best value when it comes to buy to let. RW Invest is one Liverpool property investment company with some brilliant opportunities, offering the lowest priced property investment in the UK priced from £45,450 with an 8% net rental return.
Demand
Demand for properties in Liverpool is increasingly high. With a number of available properties in the city totaling only 6,889, and a population of 484,578 that’s growing year on year, it’s no surprise that property developers see plenty of opportunity in Liverpool. Part of this demand comes from the growing student population within the city, with Liverpool boasting a number of world-class universities, lively nightlife, and rich cultural hotspots. The student property market is worth £46 billion to the UK economy, a figure which is only expected to grow as student numbers increase.
A growing economy
Liverpool has one of the fastest growing economies in the UK, outranking London, Manchester and every other British city back in 2015. Liverpool’s economic growth rates stood at 3.1% in 2015, a far cry from the low 1.6% seen from London in the same year. The economy in Liverpool is currently worth more than £121 billion and has experienced 15% of growth year on year. Rates like these are down to the appeal of Liverpool for its name as a cultural gem, fantastic shopping destination, and hotspot for exciting new developments. The Northern Powerhouse is an initiative with big plans set in place for Liverpool that are sure to bring more interest to the city. Developments include Liverpool Waters, a complete regeneration of the Liverpool waterfront which will create plenty of investment opportunities, workplaces, housing and a number of attractions.
Higher rental price growth
Liverpool’s rental prices have experienced an average growth of 2.65% over recent years, which is good news for investors. In contrast, London is showing a decline in rental prices, with a 1.12 % decrease. Combined with London’s soaring buy to let costs, it’s not hard to see why Liverpool’s rental yields are so attractive in comparison to the English capital