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Property Investment Liverpool
Buy to Let Properties in Liverpool - Best areas to invest in Liverpool Property
Liverpool is one of the leading UK cities for rental yields and capital growth. If you want to find the best areas to invest in Liverpool or more about The regeneration of Liverpool that will open you mind to the investment opportunities in buy to let and student property in Liverpool. You have come to the right place...
Since winning the European Capital of Culture in 2008, Liverpool has experienced a huge amount of regeneration and subsequently people looking to relocate. From The Beatles to Liverpool F.C. to its rich maritime history, Liverpool has a lot to offer tourists and residents alike.
The city is extremely popular and the number of people who live in Liverpool city centre has risen by 181% between 2002 - 2015, the highest growth of and UK city. It goes without saying that demand for property in the region is high meaning very good occupancy rates are to be expected from your Liverpool buy to let investments. If you're looking to join other investors and purchase a property investment in Liverpool, browse our high yielding buy to let Liverpool properties below to see which suits you.
Investing in Liverpool Property Market
Property Investment Liverpool Opportunities
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Over the years, Liverpool has undergone substantial regeneration, but what was the catalyst that brought about Liverpool’s ever-changing skyline, and what is in store for the future of the city?
From the Albert Dock to Lime Street, find out which areas of Liverpool have been regenerated and how it provides opportunity to those considering property as an investment in Liverpool.
Which part of Liverpool seems most interesting to you?
Liverpool has experienced a striking amount of regeneration recently which has made it ever more attractive to investors. How and where has Liverpool been regenerated?
- Liverpool One
- Regeneration of the Albert Dock
- Lime Street Regeneration
- Liverpool Waters
- The Anfield Project
- Liverpool's Housing Stock
Liverpool has long been the neglected city in the north west. Throughout the 1990s, whilst nearby places such as Manchester enjoyed significant investment, Liverpool was mostly ignored, and its reputation was mainly submerged in political instability and strikes. By 2004 however, that changed and with new leadership, a developer willing to invest £1 billion into its regeneration, and having been awarded the 2008 Capital of Culture, things looked set to change for Liverpool.
Liverpool Vision is an Economic Development Company based in Liverpool and have spearheaded many of Liverpool’s many urban regeneration projects in the city they are based in, such as the Baltic Triangle, Liverpool ONE, Ropewalks and Echo Arena Liverpool. As well as the regeneration projects Liverpool Vision have been involved in, here are just a few regeneration projects that have taken place in Liverpool or are in the pipeline, and how they have benefitted the city.
Image c/o Phil Thomas
The aim of the redevelopment scheme, also known as The Paradise Project, aimed to regenerate 42 acres of underutilised land in Liverpool city centre. The scheme was led by retail giants Debenhams and John Lewis, incorporating not only retail spaces, but also leisure facilities, office blocks and an Odeon cinema. Most of the complex was opened in phases during Liverpool’s year as the European Capital of Culture in 2008.
When Liverpool One had been completed, the effect it had on Liverpool’s economy was pronounced. It took Liverpool into the top five most popular shopping destinations in the UK. New businesses were springing up, and over 40% of Liverpool One’s retailers are new to the Liverpool area. Visits to the area sky-rocketed, and total footfall within Liverpool One to the end of 2008 was over 13 million. Liverpool had finally managed to establish itself as a major shopping destination in the UK. Not only has footfall increased to the retail district, but the Albert Dock has also seen an increase of around 100,000 visitors per week, up 46% overall.
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Regeneration of the Albert Dock
Image c/o helen@littlethorpe
The Albert Dock was officially opened in 1846 but only operated successfully for half a century or so. By 1900, it was too small to accommodate the large iron and steel steamships, and it seemed as though the dock was no longer fit for purpose. In fact, after 1920 there was no more commercial activity in the docks and by 1972 it closed. Nevertheless, the significance of the Albert Dock was not forgotten, in 1952 it was given Grade I listed building status and in 1976 it was made a conservation area. The Albert Dock is also a UNESCO World Heritage site. In 1983 Arrowcroft was tasked with the huge responsibility of regenerating the Albert Dock, a project that unfolded over a 20-year timeline. The scheme resulted in 1.3 million square feet of high quality mixed-use accommodation, including trendy restaurants and bars, retail space, residential apartments and offices.
Lime Street Regeneration
Image c/o Paul Robertson
The regeneration of Lime Street has recently been confirmed to go ahead, after the dispute between the developers Neptune (Sigma’s commercial development partner) and campaigners SAVE Britain’s Heritage was resolved. The £39m scheme involves the creation of a 412-bedroom student block, over 30,000 square feet of commercial space and a 101-bedroom hotel. The area of contention was the proposed demolition of the historic Futurist cinema. SAVE Britain’s Heritage was against the demolition stating that it was inappropriate action, but the court found that the building was structurally unsound and little could be done to stabilise it, so demolition was not an unreasonable step to take.
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Image c/o W_Minshull
The aim of the project is not just to increase housing stock in the city, but also to encourage new business and act as an extension of the commercial and business districts within Liverpool’s city centre. Once completed, Liverpool will be able to compete with cities such as Boston, Barcelona, Toronto and Hamburg in terms of its waterfront offerings and economy.
The Anfield Project
Image c/o Craig Rodway
The Anfield Project is a redevelopment plan spearheaded by Liverpool City Council, Liverpool Football Club and Your Housing Group. It has been in place since 2013, with the aim to improve the existing strengths of the Anfield area. It includes a range of developments, some of which are already beginning, such as:
• New and refurbished housing • New street lighting, parks and refurbished alleyways • The expansion of Liverpool Football Club’s Anfield stadium • Anfield Square – a new public square that will include commercial and retail space and a new hotel • New retail premises along the High Street, including a new Liverpool FC superstore and café So far, the regeneration project has been hailed a huge success and is considered to have helped those living in the previously neglected area in Liverpool. The expansion of the Main Stand at Liverpool Football Club’s Anfield stadium has created over 1000 new matchday roles, including catering, retail, hospitality, safety, museum, tour and kitchen teams.
Liverpool's Housing Stock
Liverpool’s mayor Joe Anderson, committed to building 5,000 new houses, and bring 1000 empty houses back into use when he assumed office in May 2012. So far as of 2015, 3,884 homes have been completed and a further 1,500 are in the pipeline. The bulk of this is made up of student and residential accommodation. Liverpool’s student accommodation sector alone is worth £256 million with the majority being in the city centre and making up 52% of city centre residents. The number of applications to study in the city is growing year-on-year and thus, the need for more student property does not seem to be slowing. It’s not just student accommodation being built in the city centre, the construction of new residential accommodation units in the city centre has long been neglected but that has been changing over recent years. Areas of note for new developments are The Strand and the Baltic Triangle. The Strand offers excellent waterfront views and a prestigious location, and the Baltic Triangle offers an exciting opportunity for those looking to live in an eclectic, creative environment.
House Prices in Liverpool vs UK Average
Property prices in the south of England are skyrocketing so it is no wonder investors are looking elsewhere in the UK to purchase property. House prices in Liverpool remain relatively modest standing at an overall average of £145,603 according to Rightmove, compared to an average of £682,498 for property in London. Consequently, the rental yields that can be achieved from Liverpool buy to let investments are far higher than those achieved in London. What had previously attracted investors to property in London and the south east in general was the strong possibility of good capital growth.
Whilst the general guideline remains that property in the south achieves higher capital growth, Liverpool’s L1 postcode has seen astonishing growth within the past few years. According to research by Which? house prices within the L1 postcode have risen by 41% in the last year compared to the previous three years. The average home in the L1 post code is still under £120,000, which is remarkably undervalued, and it has been predicted that prices will only continue to sky-rocket, so now is the perfect time to invest.
Since winning the European Capital of Culture in 2008, Liverpool is beginning to be recognised as an interesting place to visit and live, offering a diverse range of activities, sceneries and cultures, from the Chinese Quarter, to Ropewalks, to The Strand. With multiple regeneration and house building projects either in the pipeline or recently completed, Liverpool’s prominence in the north west is gathering momentum and the effect it is having on the housing market is already evident.
If you are interested in investing in Liverpool due to the sheer amount of regeneration, why not read our best places to invest in Liverpool student accommodation article next?
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Where are the best place in Liverpool to invest in student accommodation? What makes each area attractive to students and investors alike?
If you are curious, all will be revealed in our Liverpool student market analysis. The fundamentals of Liverpool student demand, demographics and future supply will be broken down on post code by post code basis.
Do not invest in Liverpool student property before reading our snapshot summary. To discover the best areas for student property in Liverpool, click on the green arrow =>
Best areas for Liverpool student accommodation investment
Liverpool is home to several universities and has a large student population. Many investors choose to buy student property in Liverpool, but some areas fare better than others.
With low property prices and a high number of students, it is unsurprising that Liverpool is a popular city for investors looking at student property. Properties in some postcodes fare better than others, so we are pinpointing the best area to invest in student property in Liverpool.
When considering student accommodation investments, individuals must examine different credentials than what they would it they were investing in traditional buy to let. Whilst many invest in a traditional buy to let to achieve good capital growth, people invest in student accommodation in areas of high demand to achieve high rental yields. This is often why student property in Liverpool is popular with investors, but some properties work out as better investments than others depending on where they are situated.
There are many new student developments under construction. Around Lime Street Unite are building an enormous development that when completed in 2020, will accommodate over 1,000 students. Meanwhile just down the road, Ion is undertaking a redevelopment of an 11-storey building that will complete shortly. Unite are also building a 776-bed St Luke’s scheme under the Bombed Out Church. In the past three years over 5,800 bed spaces have been created in Liverpool.
However, there is also a lot of existing student accommodation stock in Liverpool. In 2017 according to Savills’ Student Spotlight report, there were 21,700 existing PBSA units in the city which equates to 2.1 students per unit.
With additional units either under construction or granted planning permission, this ratio is set to reduce to 1.4 students per unit. This will have potentially damning effects on any potential rental growth as competition is reduced.
Before even considering a development or area, investors should either acquire good knowledge of Liverpool as a city, or work with a property investment company such as One Touch Property, who will research the area and its demographic. It is important to select developments in areas close to university campuses, because this is where students want to be living. Students don’t want to spend time and money travelling to lectures and seminars – they want to roll out of bed and step straight into the classroom.
It is also worth considering the quality of the build, the price of a unit in a development, and the weekly rent. Students are becoming increasingly discerning tenants; they want good quality accommodation at a good price. Students aren’t willing to spend £200 per week on a studio that is furnished to a poor standard, regardless of location. Whilst you want to ensure the unit you are investing in is of quality build, you want to ensure it is modestly priced so that you, as an investor, achieve a decent yield.
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Postcodes to Consider Investing in Student Property in Liverpool for High Yields
L1 - Liverpool City Centre
Features: L1 covers much of Liverpool’s city centre, including Liverpool One and Liverpool Lime Street.
Investment Credentials: Property prices in this postcode have been soaring, indicating an increasing desire to live in this area, and there has been plenty of regeneration such as that of Liverpool One, and more in store, such as New Chinatown at Tribeca Fields.
Student accommodation in this postcode not only benefits from being close to restaurants, bars, transport links and shopping centres such as Liverpool One; but L1 is also within easy reach of many university campuses.
Generally, the more central you are the higher the demand for property. Due to the demand of living in such a prime location, properties can command higher rents, which makes property investment here more sustainable in the medium term.
L1 is also the postcode to consider if you wish to sell at a profit. The average property price between 2011 – 2014 was £85,000, but between 2014 – 2015 this shot up to £120,000.
Developments: Sir Thomas House is situated on Sir Thomas Street, right in the heart of L1. Units in Sir Thomas start from £75,000, and an 8.4% rental return is guaranteed for two years. It has recently been converted into serviced accommodation which lowers the competition further. L1 is a central area and typically a tourist hotspot. Owning serviced accommodation in the area maximises the chances that it will be occupied. Also, short term lets tend to command higher prices, so there is more possibility for greater rental yields.
Typical weekly rent in the L1 postcode for a studio is between £120 – £150
L3- The Knowledge Quarter
Features: Many of Liverpool’s university campuses are in L3, including Liverpool John Moores University, the University of Liverpool and The School of Tropical Medicine. It covers much of the renovated Docklands area, and almost forms an outer ring around Liverpool’s city centre and L1 postcode.
Investment Credentials: L3 is popular with students because many of the university campuses are based in L3, meaning that they can have an easy commute to lectures and seminars.
Developments: Devon House student property is an investment within the L3 postcode. Apartments start from a modest £67,950 and promises an 8% net yield for three years.
Typical weekly rent for a studio in the L3 postcode is between: £115 – £170
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Features: L5 covers the Vauxhall and Everton area of Liverpool.
Investment Credentials: It is currently receiving significant investment, such as the £150 million regeneration of Great Homer Street, dubbed as Project Jennifer. The regeneration scheme aims to bring new shops, a new supermarket, improved public spaces and new homes to the area. This will have a positive social and economic impact, and help to improve the environment. With these continuous improvements, property in L5 is becoming more and more desirable.
Developments: Phoenix Place is a student property for sale in Everton. The development situated in the L5 postcode, within walking distance of Liverpool’s city centre. Units in Phoenix Place come fully furnished, and promises a 9% yield for five years.
Typical weekly rent for a studio in the L5 postcode is between: £80 – £135
L8 – Baltic Triangle and surrounds
Features: L8 covers parts of Liverpool such as Toxteth, Dingle and parts of the Georgian Quarter, and lies just to the south of the city centre. It’s a lively area, with an emerging arts scene as a Liverpool-based arts project won the Turner prize in 2015 for its work in regenerating terraced housing in the Toxteth area. It’s also the birthplace of The Beatles, and the area plays homage to that fact.
Investment Credentials: There has been significant regeneration in L8, with many Victorian houses being demolished in favour of new developments. The Welsh Streets, a series of Victorian terraces near Prince’s Park, and birthplace of Beatle member Ringo Starr are in the process of being refurbished which will in turn make the area more appealing.
Currently, property prices are lower than in other central Liverpool postcodes such as L1 and L3. Yet regeneration is bound to push up prices in the area.
Developments: The Steel is a student property in Liverpool L8, that offers 8% net income assurance and is close to both the University of Liverpool campuses and Liverpool John Moores University. The development is completed and already fully tenanted, and units can be purchased from £47,588.
The typical weekly rent in the L8 postcode for a studio apartment is around: £70 – £120
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It is understandable that the increased supply vs demand could stunt rental growth as there is reduced competition. However, that is to assume that the existing student accommodation stock in Liverpool will still be fit for purpose – which is not always the case. For example, Worthington Group announced in 2018 that it was going to convert North Western Hall on Lime Street back into a hotel due to the significant changes it would have to undergo to bring it up to the standard of new student accommodation offerings in the city.
Universities in Liverpool only provide beds for around 16% of their students, so there are clearly many students in Liverpool requiring quality accommodation. Not only that, but with the increased tendency to choose central locations, city centre properties are predicted to perform better than HMOs in the suburbs.
Another option that is on course for the 2020/21 student intake is Borden Court. The development comprises 119 single rooms and all amenities such as communal kitchens, dining rooms, store rooms, wash rooms and laundry facilities. The ground floor has been converted into a large shopping centre which boasts high end shops, homeware stores and eateries. This student accommodation investment in central Liverpool is completed, which means that there is not any development risk and investors can earn income immediately. It is located in the L3 post code of Liverpool – approximately equidistant between the city centre and the Knowledge Quarter where many of Liverpool’s universities have campuses. The convenient location makes it ideal for those wanting an easy commute to lectures and who also want to enjoy Liverpool’s nightlife offerings.
The continued appeal of Liverpool student accommodation for students and as an investment is dependent on proximity, quality of finish, management company and additional services provided.
In conclusion, although there are significant developments of student accommodation in the pipeline in Liverpool, older stock is either being repurposed or is in the suburbs where it is less convenient for students to get to lectures and return home after a night out. The repurposing of old student stock should rebalance supply and demand, and newly built city centre student apartments will always have the edge over HMOs in the suburbs. Liverpool student property investments can still be lucrative, providing investors are savvy and research the demand in the area. Start your property search today to get the most out of this attractive opportunity
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