The area around Liverpool waterfront on the banks of the Mersey has become one of the most sought after locations in the north west.
Thanks to millions of pounds worth of investment, regeneration and new developments, Liverpool waterfront is now well-known as a popular hub for living, working and entertaining. Now, it has been hailed as one of the country’s leading property investment hotspots.
A report by Beauchamp Estates in London and Logic Estates in Liverpool has found that rental yields in Liverpool average around 6.4%, but Liverpool waterfront property often surpasses this due to its huge popularity among renters.
One-bed properties in the city yield around 6%, while two-beds bring in around 6.5%, says the report. By comparison, London one and two-beds bring in yields of around 4.5%, while in Manchester it is around 5% and 5.4% respectively.
Strong capital appreciation in the city
Liverpool’s residential property market has seen capital growth of around 14% over the past year, says the report. Looking over the past five years, there has been a 40% increase in property prices, rising to 50% for the past 10 years.
On average, homes in Liverpool have been selling for around £237 per square foot, making it one of the cheapest major cities to buy property.
In London, you can expect to pay in the region of £678 per square foot. Manchester is also relatively affordable, at £353 per square foot, with Birmingham even more so at £300 per square foot.
Property investors often target these key cities with either strong tenant demand or the prospect of rising house prices in mind. All of these locations have proven strong in their own rights over the years, but Liverpool consistently appears as one of the top-ranking places for rental yields.
Numerous other factors attract investors, as well as homebuyers and tenants, to the city of Liverpool. As well as its affordable housing market, the city is full of cultural attractions and museums, with a world-famous music scene and a wide array of shops, bars and restaurants.
The city also attracts thousands of university students every year, many of which stay on as postgraduates, which also serves to push up the demand for rental homes.
Invest in Liverpool waterfront
Liverpool Waters is one major redevelopment project currently underway in the area, involving a major overhaul of the city’s northern docks to bring the 150-acre area back to life.
It consists of five new neighbourhoods containing residential, business and leisure space, some of which is already completed and in use.
Numerous businesses have already moved into premises in this area, as well as further along the Liverpool waterfront, creating a thriving community scene.
BuyAssociation was involved with one of the first phases of the sold-out Liverpool Waters residential schemes, part of the Central Docks neighbourhood. It consisted of 129 apartments in the 14-storey Park Central block.
At the time, BuyAssociation noted unprecedented demand for property in Liverpool, and this appetite is still going strong as the city’s housing market continues to outperform other areas.
“Liverpool is one of the key areas in the UK to invest in property right now, and with more investment and regeneration in the pipeline it’s one of the most future-proof markets,” Caroline Marshall-Roberts, chief executive at BuyAssociation, commented.
“Park Central has been a really exciting product to launch and has proved hugely popular among our investor base as well as among owner-occupiers. The North West in general is still one of the most popular places to invest in property and we don’t expect that interest to abate any time soon.”
You can read more about how the redevelopment is progressing here.
As well as Liverpool, BuyAssociation can help property investors access off-the-market and off-plan deals across some of the UK’s key towns and cities, direct from the developer. Get in touch to find out more.
