Investing in Property
Property Investments in Liverpool
Looking for lucrative property investment in Liverpool, but not sure where to begin? You’ve come to the right place. Brite Developments is here to talk you through the benefits of property investment in Liverpool, the local housing market, and the best areas for investment.
At Brite Developments, we have extensive experience and expertise in helping investors, buyers, and developers alike to secure ideal finance and property opportunities that suit their investment needs.
To discuss property investment in Liverpool with our experts, get in touch today and we’ll get back in touch in no time!
Why Is Liverpool Such a Fantastic City to Invest in?
Situated in Merseyside, in the North West of England, the city of Liverpool is the eighth most populated city in the UK with 466,415 inhabitants. The wider Liverpool area is the fifth largest metropolitan area in the UK, home to an estimated population of 2.24 million.
With many different exciting developments and potential for economic growth, there are a wide variety of property investment opportunities – ranging from rental properties to property development alike – suitable for all different budgets.
But what makes property investment in Liverpool so attractive?
One of the greatest benefits of investing in Liverpool is its connectivity to the wider North West Area, as well as the rest of the UK. It is perfectly situated and equipped for trans-Pennine and cross country travel.
There are four main train stations in the city centre, connecting Liverpool with the North West and wider national cities:
Liverpool Lime Street
Liverpool James Street
Merseyrail operates a local underground and overground service to 68 stations in and around the greater Liverpool area, at regular and frequent times throughout the day. This efficiently links the city centre to the surrounding areas - allowing you to quickly explore the city, or even travel as far as nearby Chester and Southport.
You can also take a ferry across the Mersey – a world-famous journey offered by Mersey Ferries. There are another two ferry routes departing from Liverpool. This time their destination a bit further afield, crossing over to Belfast and Dublin in around 8 hours.
In addition to local connections, Liverpool boasts excellent regional and international transport links from Liverpool John Lennon Airport.
If you prefer to travel by road, Liverpool has a multitude of bus and taxi services, as well as being situated on the western end of the M62 - a west-east trans-Pennine motorway that connects Liverpool to Leeds, Wakefield, Hull, Bradford, and Manchester - and Birmingham via the M6.
Liverpool is an affordable place to live. In fact, statistics show that Liverpool is 46% less expensive to live in than London.
When compared to properties in nearby Manchester, Liverpool is overall 5.11% less expensive to live in (including rent) - groceries are 1.2% cheaper, and rent prices are 17% lower.
Due to this, Liverpool proves to be a much more affordable city to live in than other major cities in the UK. Plus, thanks to the wealth of transport links, it is easy to commute into both Manchester (around 40 minutes on the train, or 1 hour drive via M62) and London (2 hours 17 mins direct via Avanti West Coast mainline).
Local Culture and History
Liverpool has long since been regarded as a cultural and historical hub of the North West – it was even named European Capital of Culture 2008.
Through continued regeneration, the city has an eclectic mix of architecture and attractions that span right back to its industrial roots.
Musical History of Liverpool
Of course, when you think of Liverpool, you’ll likely think of one of the world’s greatest bands of all time - The Beatles. Having grown up in and around the city, there’s naturally a plethora of Beatles-related attractions for everyone to enjoy.
Some of the main Beatles attractions in Liverpool include: The Beatles Story, Beatles Magical Mystery Tour, Strawberry Field, Liverpool Beatles Museum, The Cavern Club and Beatles’ Childhood Homes.
Top Historical and Cultural Attractions in Liverpool
In addition to acknowledging the area’s most celebrated musicians, there’s no shortage of historical and cultural sights, attractions, and entertainment in Liverpool. Some of the most popular attractions in the area are:
Museum of Liverpool
The Royal Albert Dock
Royal Liver Building
Those who enjoy shopping and dining can benefit from Liverpool ONE. Boasting over 170 stores, bars, and restaurants, and spanning over 40 acres, it is one of the largest open-air shopping centres in the UK – located right in the heart of the city centre.
Liverpool is also home to football stadiums Anfield and Goodison Park, of Liverpool FC and Everton FC, respectively.
And for those who enjoy the great outdoors - the mountains of Snowdonia National Park in north Wales are a little more than an hour's drive away or National Trust’s Formby Beach just 15 miles away.
A Large Student Population
As such a diverse and vibrant city, it is no surprise that Liverpool continues to draw a large student population that increases year on year. With so many respected institutions, the student advisory service Top Universities estimates that Liverpool now boasts a student population of around 70,000.
There are three major universities in Liverpool:
University of Liverpool
Liverpool Hope University
Liverpool John Moores University
Despite the tumultuous past couple of years causing more students to study from home, surveys show that around two thirds of full-time students in the UK still choose to move away from home for university.
Past studies found that Liverpool has one of the highest net inflows of students of all UK cities - and, it has a relatively high graduate retention rate of 31%, too.
How Does This Impact Property Investment in Liverpool?
After living in halls of residence during the first year, many students will turn to private rental accommodation whilst they complete their studies. As they enter the job market after graduation, renting remains the top choice – which adds further value to any property investment in Liverpool.
With all this in mind, it is clear that student property investment in Liverpool can be an incredibly lucrative option.
But it's not just students of the above universities that call the city their home. Due to an accommodation crisis at Manchester Metropolitan University (MMU), hundreds of MMU undergraduate students have been living in Liverpool since September 2022, thanks to the ease of commuting between the two cities.
Not only does this highlight the sheer demand for student accommodation in the North West in general, but also that the demand for accommodation in Liverpool comes from both students of Liverpool-based institutions and those studying further afield, alike - especially if those students choose to stay in the city post-graduation.
The Housing Market in Liverpool
In 2021, Liverpool was named one of the most affordable cities to purchase a house in the whole of the UK. Despite a 10.5% house price growth thanks to the cost-of-living crisis and growth of the property market, the average house price in Liverpool in 2022 is around £174,890 – which is significantly less than the national average (£299,248).
However, the 10.5% increase in house prices is indicative of increasing demand and thus growing the housing market in Liverpool. This means that, as house prices continue to rise, the value of the investment property in Liverpool will increase, and capital growth is maximised.
As a result, property investment in Liverpool benefits from being both cost efficient and offers a greater return on investment, plus excellent yields, with future growth.
What Is the Rental Market Like in the City?
Investors in residential property, and those interested in the development of houses, can benefit from strong yields in the current rental market. Buy-to-let property is one of the most lucrative options, particularly.
Average rental yields vary depending on the location within Liverpool. According to Numbeo, the average monthly rent in the city centre is: £747.86 for 1 bedroom apartments or £1,460.71 for 3 bedroom properties.
For rental properties outside the centre of Liverpool, average monthly rental is: £553.33 for 1 bedroom apartments or £895.83 for 3 bedroom properties.
As more people turn to renting during the cost-of-living crisis, the rental market is predicted to continue growing – and the opportunity for increased rental yields along with it. But what are the best areas to invest in Liverpool for renting?
The areas that typically benefit from higher average rental yields and capital growth tend to be the areas with lower house prices and higher demand.
In particular, this includes the districts of Anfield and Birkenhead - as well as the city centre (such as L1, L2, and L3 postcodes). In these areas, you can expect an average rental yield of around 5.7% to 6.9%.
Student property investment in Liverpool is another fantastic opportunity, as average yield is more stable and predictable thanks to the continuous steady stream of new and returning students to the area.
Areas that are particularly popular with student populations include Kensington, Wavertree, Edge Hill, and Toxeth. In these student-dense districts benefiting from student-driven ongoing regeneration, you might achieve an average rental yield of 5.1% to 6.6%.
Start Your Property Investment Journey in Liverpool with Brite Developments
As an experienced development team boasting wide-spanning expertise throughout the financial industry, we have the knowledge to help you put your first foot on the investment ladder – or help seasoned investors to maximise their returns, growth, and yields.
After 30 years in the industry, we’ve seen the highs - and we’ve seen the lows. Thanks to this, we have first-hand experience to assist you through every stage of your property investment journey.
Whether you are a developer, investor, or buyer - looking to advance your portfolio or want a bit more information first - fill in our online contact form and a member of the team will be in touch as soon as possible.