Where next to invest? We profile the world’s top property hotspots, detailing everything an investor needs to know.
House prices up 7% year-on-year in 2016 (Hometrack).
Bootle, Merseyside is #1 buy-to-let hotspot in UK with 9.3% yield (Rightmove).
Interest in Liverpool property up 60% in 2016 (TheMoveChannel.com)
Where is it?
One of the largest cities in the UK, Liverpool sits in the county of Merseyside in the North West of England. It’s a long way from London, but the region is the country’s fastest-growing economy, a major hub for business, tourism, and, of course, football.
Voted “Britain’s Friendliest City” by Condé Nast Traveller, the area is a popular tourist destination and, as the place that gave the world The Beatles, is a major part of the UK’s cultural history.
Who lives there?
The population of Liverpool has grown significantly over the last decade, fuelled by a rising number of younger professionals. With the Northern Powerhouse promising to boost Liverpool’s already expanding economy, more people are expected to move to the city. Post-graduate students are also increasingly staying in the area after finishing their studies. As a result, the demand for accommodation is increasing, prompting a wave of investment in regeneration and development across the city.
Liverpool’s strong economy and expanding population mean that demand for property is outpacing supply. As a result, rental income is strong, making the market extremely attractive to buy-to-let investors. Bootle in Merseyside currently offers a buy-to-let yield of 9.3 per cent, according to the latest research from Rightmove and The Mitula Group, the highest in the country.
Property values are rising too, with Liverpool recording the UK’s fastest house price growth in the final quarter of 2016, according to research by Hometrack. In 2016, Liverpool city prices rose 7 per cent annually in 2016, one of the 10 strongest cities in the country. Data from Zoopla shows that prices have risen 18.91 per cent in the last five years. Nonetheless, the average asking price remains £164,855, below the average price of a typical UK city (£252,700 – Hometrack), below England’s national average (£321,785 – Zoopla) and significantly below the average London house price (£494,300 – Hometrack).
Near-double-digit rental yield and long-term capital growth are the backbone of Liverpool’s appeal to investors. The weak pound has only reinforced the city’s attractiveness.
With spending on regeneration surpassing £1 billion in recent years, areas such as the Albert Dock have become flagships of the city’s new face. With a £39 million regeneration of Lime Street underway in 2017, Liverpool’s infrastructure improvements are only topped by its residential and commercial development, with everything from waterfront apartments to student accommodation being constructed.
With new-builds springing up across the market, buildings with unique and historical roots in the area are increasingly sought-after. In the last year, for example, there has been strong interest in The Residence at Colonial Chambers on Victoria Street and Reliance House, an Edwardian-style building in the heart of the city.
Liverpool property attracts investors from the UK, the Middle East, China, Singapore, Thailand and more.
“Economic growth, rising house prices, strong rental demand, ongoing regeneration. Liverpool is one of the most exciting, and most rewarding, places to invest in the UK.”
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