When investors, particularly from overseas, think about investing in the UK property market, the most desired locations has long been London, standing as the capital city of England. However, over the last couple of years, Liverpool has experienced extensive regeneration and is becoming more and more popular by the day. With a fantastic industry of tourism, more multi-million pound projects to regenerate the city and an economy that is continuing to thrive, it is clear to see just why Liverpool is a hot topic in the world of property investment.
After being created in 2015, the Northern Powerhouse initiative has been a very important part of the way in which Liverpool has developed in recent years, bringing together the major northern cities to develop transport links and encourage investment into education, technology, the arts and science and innovation. Following this, Liverpool has seen its economy boosted beyond expectation, of which has also influence growth to the property market. As well as the initiative, there have also been a number of other factors that have helped to develop the Liverpool property investment market as a whole.
Liverpool’s Regeneration and Booming Economy
Over recent years, Liverpool has undergone some fantastic regeneration, seeing more and more developments continue to pop up, including those bringing hotels, shops, restaurants and leisure facilities to the city, of which will contribute millions of pounds to the economy year on year. With even further plans set for the next few years, including a new public park, plans for a cruise liner terminal and a new stadium for Everton Football Club, as well as more restaurants, hotels, shops and offices, Liverpool is sure to see its economy continue to grow. Liverpool has now become a very popular business and tourism destination, and it is fantastic to see that the city isn’t resting on its laurels, looking to turn success into even further successes.
The economy in Liverpool is worth £29.5 billion at the moment, continuing to develop at a much higher rate when compared to other locations throughout the UK. With more than a quarter of a million businesses located in Liverpool, including some of the biggest names such as Barclays, Jaguar, Santander and many others, the city truly is a hub for business. This is one of many reasons for young professionals to move to the area, and highlights just why the economy is booming, with employment also expected to rise significantly in the coming years.
The Liverpool Property Market
Rental yields within Liverpool are some of the highest in the whole country, with an average of 6.2%, announcing itself as one of the best locations in the UK for buy-to-let investment. Rental growth within the city is also increasing, with a growth of almost 15% expected between for the period of time between 2018 and 2021. With young professionals flocking to the area, more high quality housing is needed within the city centre in particular.
Property prices in Liverpool have also increased since 2015, with an increase of approximately 14%. This trend looks to be continuing and is expected to do so once again between 2018 and 2021, with a growth of almost 18% expected for that period.