A tale of two halves
Two cities. One in the north the other in the south. Some would say the only thing Liverpool and London have in common is the first letter of each city’s name. But that’s changing.
Because Liverpool like London now has the pull of serious property investors and has become a real contender as a property hotspot in the country.
London’s property appeal is known the world over. It’s one of the best places to buy and offers higher rents than most other global cities and is, therefore, a good reason for investment. But, investors want more. To coin a phrase, they want to get ‘more bang for their buck’ – to get a better result for what they have put in financially. And this is where Liverpool delivers.
The way Liverpool performs on the property market has brought attention to savvy property investors on the prowl in the North West neighbourhood. And why not, the city is doing a sterling job in putting its head above the property parapet and getting noticed for all the right reasons.
As one of the key core cities in the Northern Powerhouse, Liverpool continues to make headway in the property investment market.
The city is benefiting from the Powerhouse’s collective might, which helps to boost the local economy, invest in skills, innovation, transport and culture. Increased devolution powers also mean it’s easier for the city to make decisions that are are in its best interest to help it grow, which is another reason for its popularity with property investors in the UK and overseas.
Investors are looking for the best property investment prospects. This means going where the strongest rental yields and highest levels of capital appreciation are. And because of this, the property investment compass is very clearly pointing towards the north of England – namely Liverpool.
A survey by international real estate and investment company, IP Global, names Liverpool as one of four key cities in the UK as a main investment hotspot. London was not featured in the top four listings and it’s not hard to understand why. In the past three years, there has been a notable change in the London property market, the decline in investment and sluggish sales are evident. And although the capital’s house prices remain the highest in the country it continues to experience the weakest price growth. Because of this, there is a shift in the way it’s viewed by property investors.
Liverpool is one of the UK’s best-performing property investment locations. It has an average net rental yield of 6.2%, according to research by independent mortgage broker, Private Finance. Property analysts have highlighted a number of postcodes in Liverpool and named them to be the highest average yields in the UK. The L7 postcode has been identified as one of them. This covers areas such as the City Centre, Fairfield, Kensington and Edge Hill. And it’s in this L7 postcode that has the greatest yield for buy-to-let properties. You can find out more information and view properties in Liverpool here at RWinvest
Bright future for Liverpool
Liverpool’s property success – backed up by the research, studies, data and information about property investment – has not gone unnoticed. And it seems only logical that other smart investors will follow suit given the fantastic results on ROI, yields, and capital appreciation.
Add to this, the latest research (February 2018) by property website Zoopla which shows Liverpool is one of the most affordable cities in Britain for first-time-buyers. The city ranked third compared to 50 other cities. The research compared 50 of Britain’s largest cities and analysed the data which included factors like low property prices, the amount needed for a deposit and stamp duty tax relief.
See chart below courtesy of Zoopla to see the city’s ranking in the top 10 most affordable cities for first-time-buyers.
London, as an expensive city to buy and live in, is understandably trailing and topped the list for the 10 least affordable places for first-time-buyers. See chart below also courtesy of Zoopla.
It’s fair to say that property investment in Liverpool is solid with a great trajectory and fantastic benefits for landlords. It’s also fair to say, that the north and south will always have different things to offer and will attract based on investors’ need. Liverpool has well and truly caught the eye of investors and given how it performs – topping many property lists for best yields, most affordable place to buy and rent – it’s very easy to understand why.
For information on property investment opportunities contact RWinvest on +44 (0)151 808 1250 Email: firstname.lastname@example.org or visit our website: www.rw-invest.com