There is no disputing the fact that Liverpool is a prominent figure in the North West of England when it comes to tourism, economic growth and rising property prices. The city of Liverpool has a population approaching 500,000 while the metropolitan area has a population approaching 2.5 million. Over the last few years there has been a growing appetite for property in central Liverpool and the surrounding areas. So, why are so many investors being drawn to Liverpool and what are the prospects going forward?
Over the last decade there has been major investment in redevelopment in and around the city of Liverpool. This has literally changed the face of Liverpool and with billions of pounds of additional redevelopment in the pipeline the future looks extremely promising. These changes have attracted significant numbers of visitors from around the UK and overseas.
The regional figures provided by Invest Liverpool make for very interesting reading showing that in 2018:-
• The region welcomed more than 67.3 million visitors which was a 5% increase on the previous year
• 61 million were day visitors with 5.5 million staying at least one night
• Demand for serviced accommodation increased by 5.9% to 2.8 million
• Tourism created an additional 57,000 jobs, an increase of 6.7%
Figures for the city of Liverpool alone are even more impressive, showing that:-
• There were 38 million visitors, up 7.4% on the previous year
• Of these, 2.7 million stayed in the city which was an increase of 5%
• There was an increase of 6% in demand for serviced accommodation
• Tourism created an additional 38,000 jobs or an increase of 8.4%
We know that over the last five years the visitor economy in the Liverpool City Region has increased by a staggering 28% and now stands at £4.93 billion. The total number of visitors to the area increased from 58.7 million in 2014 up to 67.3 million in 2018. If you set this against the average city regions across the UK, inbound tourist numbers reduced by 3.4% in 2018 compared with other city regions seeing an average fall of 7%. These figures perfectly robust demand of Liverpool as a city of culture, nightlife, cuisine, architecture and history.
Demand for Liverpool buy-to-let properties
There has been much media coverage in relation to Liverpool house prices which have recently been the best performing of cities throughout the UK. Average house prices in Liverpool now stand at £125,500 – an annual increase of 5.8%. There would appear to be even further upside in the short to medium term as the rate of growth has accelerated from 3.8% the previous year. There are a number of factors to take into consideration when looking at Liverpool buy-to-let investments, which include:-
• Average house price to earnings ratio 4.4 set against 13.1 for London properties
• The rate of 4.4 times earnings is well below the peak of 5.6 seen in 2007
• Net rental yields in excess of 7% are available on new build projects
• A prosperous local economy
• Very buoyant employment market
• Billions of pounds of additional redevelopment in the pipeline
Property investment companies such as One Touch Investment offer access to a range of buy to let investments across the city of Liverpool, including the trendy Baltic Triangle. This particular development offers a range of properties starting at £114,750. Rental yields of 7% are assured for 12 months which reflects the growing demand for rental property in this particularly buoyant area of Liverpool. One Touch Property can also help you throughout your investment journey, from start to finish. This includes providing guidance into particular investment options to acquiring the property through to resales if required.
It is fair to say that Liverpool has changed dramatically over the last 20 years with the economy, property market and employment market significantly outperforming the UK average. Investment and redevelopment has certainly changed the face of the city and an extremely buoyant employment market has seen growing demand for private rental properties. As many property investors continue to divest from London, looking towards regional markets, there is certainly scope for more appreciation in Liverpool property prices.