Successful buy to let property developers do not stand idly by lapping up praise for successful projects. Instead they move with the latest trends, appreciate the differing demands of tenants and ensure they are in a position to deliver. It is therefore no surprise to see a significant increase in the number of buy to let apartments across thriving cities such as Liverpool with The Metalworks development grabbing the attention of investors.
While Manchester tends to grab the headlines in the North West of England, the regeneration of Liverpool continues with hundreds of millions of pounds being poured into the city centre and surrounding neighbourhoods. This has led to something of a double-edged sword with the Liverpool economy and business environment extremely buoyant but house prices moving out of the reach of many young professionals today.
As a consequence, we have seen a significant increase in shared occupancy across the young professional sector as well as student accommodation. Flat share website Spareroom recently released a report confirming the increase in shared occupancy rates across the UK. Flatsharing increased by 186% in the age group 35 to 44 between 2009 and 2014. Surprisingly, there was a 300% increase in the age group 45 to 54. It is safe to assume that shared occupancy rates amongst young professionals, who have not benefited from the lower house prices of the past, will be even greater.
Residential options for those living in Liverpool
There are new developments aplenty across Liverpool as regeneration and redevelopment continues to gather pace. Liverpool student numbers are up 20% year-on-year, the business sector is thriving but there is an ongoing shortage of shared accommodation and HMOs. At this moment in time 23.4% of properties in Liverpool are privately rented, the city attracts 60 million visitors a year and the number of businesses operating from the city is at a five year high. There is strong underlying long-term demand for shared accommodation with developers set to deliver a significant increase in new developments in the short to medium term.
Rents rising faster than wages
A recent report by the TUC suggested that wage inflation over the last decade is at an historic low. Therefore, as house prices continue to rise and wages remain under pressure there is growing demand for shared occupancy developments. It is difficult to see how this trend will weaken in the short to medium term with developments such as The Metalworks in high demand.
The Metalworks development
As a consequence of growing demand for shared occupancy, phase 1 of The Metalworks development is set to deliver a mix of beautifully designed one bed/two bed apartments together with two bed duplex apartments. The 2 bedroom layout is unique for the city as it has been designed to suite a shared living environment.
Simon Clarke, Director of Acentus Real Estate Ltd added;
“The new two-bedroom, two bathroom plan is an iconic design from Space+ and the first in the city which is ideal for families or two couples to share with two equal sized master bedrooms and en-suite bathrooms, walk-in wardrobe, ample central living space and with spectacular views over to the river Mersey or the communal gardens. The design has proved popular so far with over 10 sales achieved in the first few weeks of release. “
Situated a short distance from the city’s ever expanding business district and bustling social scene, The Metalworks development will eventually deliver 323 high quality apartments for young professionals and families.
After completion of phase II those living within The Metalworks development will have access to on-site parking, communal first-floor gardens, on-site bicycle storage and a 24-hour concierge. Investors now have the opportunity to lock in an attractive rental yield, high occupancy rates with potential for capital growth. It is not difficult to see why demand for The Metalworks project is high amongst local, national and international investors.