Why Liverpool has become a Buy-to-Let hotspot
In recent years, Liverpool has become a Buy-to-Let hotspot and it is no happy accident. Competitively priced properties and stable rent prices make for high rental yields and as a result mark Liverpool as a favourable place for landlords to capitalise and expand their portfolio.
According to HSBC, the city features as one of the top ten locations for Buy-to-Let investments throughout the UK, with annual yields upwards of 6.5%. Put this alongside various economic and demographic developments and it’s easy to see why Liverpool has so much property potential.
This latter point is key to the success of Liverpool’s Buy-to-Let property market. With more than 60,000 students, Liverpool has established itself as a popular university city resulting in a ready-made target market for investors. Whether it’s high-end city centre student pads or suburban housing, there is something for everyone.
Furthermore, Liverpool has one of the highest student retention rates in the UK, with thousands of graduates choosing to stay in employment (and housing!) in the city once their degree is complete.
Importantly, there is a large number of international students coming to Liverpool every year, making up 10% of the student body - a figure that is estimated to increase a further 10% by the start of the next decade as the overseas student cap is lifted.
At present, Liverpool is witnessing the redevelopment of some of its forgotten corners. The regeneration of the once barren Baltic Triangle is well under way, an area that provides business scope for creative types, as well as trendy Warehouse living, and therefore makes it an attractive opportunity for stakeholders. Penthouse apartments on the developing docks are also catching the eyes of investors looking to make a buck.
As well as student influx and regeneration projects, there are numerous other factors contributing to Liverpool making a name for itself as a Buy-to-Let hotspot. The expansion of the city’s hospitals is bringing more medical staff into the area.
Large companies, such as Shop Direct, choosing to expand in the city is also contributing to the increase in demand for good quality rentals in the city and surrounding suburbs.
In terms of investors, changes in pension schemes are likely to encourage people to invest. Many pensioners will now be granted access to their money at 55, and with Buy-to-Let outperforming other forms of investment, many are choosing to safeguard, and make gains on, their capital by renting out properties.
* Debra Beach is Branch Manager at Keppie Massie Residential estate agency in Liverpool.
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