Liverpool Buy-to-Let Property: Showing a High Rate of Growth

Liverpool is not only one of the most vibrant cities in the world. It also has one of the best-performing property markets, according to the latest Hometrack Cities House Price Index.  The survey shows that Liverpool house prices are 4.9% higher than the previous 12 months.

Only Edinburgh is showing higher-priced growth, at 5.1%. And when you contrast this with the fact that the average UK city house price growth is just 1.7%, then you can see why savvy buy-to-let investors are buying properties in Liverpool.

But wait!

That is not all…there is more good news for those who have already invested in Liverpool, and for those who are looking to buy Liverpool investment property.

Liverpool has a sales-to-supply ratio of 1.

You may ask – what the heck does this mean?

Well, it means that for every sale that is agreed, the market is seeing the same level of supply.  Or to turn it around, for any number of properties that come to the market, there are the same number of potential buyers.

Effectively the current level of supply for property in Liverpool is equally matched by the current level of demand.

This would indicate that we have a stable and sustainable marketplace.

“Liverpool has a sales-to-supply ratio of 1 and it is no surprise it has one of the fastest rates of growth as sales match new supply, creating scarcity.”

Source: Hometrack

Let’s have a look at some tables and graphs.

Ratio of sales agreed to new supply

Ratio of sales agreed to new supply
Source: Zoopla House Price Indices, powered by Hometrack

City level summary

City level summary for UK buy-to-let
Source: Zoopla House Price Indices, powered by Hometrack

City year-on-year (YOY) price inflation – current and 12 months ago

City year-on-year (YOY) price inflation – current and 12 months ago
Source: Zoopla House Price Indices, powered by Hometrack

So Which Liverpool Postcode Is Showing Average Yield of 9.79%?

If you are looking for high yields, then Liverpool is the place to invest.

According to research by comparison website TotallyMoney, which looked at 580,000 properties across England, Scotland, and Wales to find the areas that offer the highest buy-to-let yields, Liverpool’s L7 postcode is reporting an average yield of 9.79%.

Liverpool L1 is not doing too badly either, showing yields of 9.33%.

A Place to Live, Work and Play

I am sure by now you are probably happy with the numbers and the potential investment returns that you will benefit from by investing in Liverpool.

But what about the other stuff?

Liverpool is one of the best places to live. A destination with over 180,000 shops, restaurants, bars and a plethora of attractions.

You can’t visit Liverpool without checking out its waterfront, which is famed for its heritage and culture. The architecture is some of the most stunning in the world, which is one of the reasons Liverpool has been honoured with UNESCO world heritage status.

The city is leading the way as the UK’s fastest-growing digital cluster and, with over 300,000 business in the city region, the employment market is underwritten with strong fundamentals.

Buy-To-Let investors should always look to invest in locations where people have many job opportunities – this means that people need to rent and/or buy property, which therefore creates a healthy marketplace.

Watch the video below to get more details about the strength of Liverpool’s economy.

Invest In Liverpool Video

Cultural Hotspot

One of the catalysts for Liverpool was when the city successfully bid for the title of European Capital of Culture 2008.

After this award, the hidden gem that was Liverpool re-emerged as a global cultural player.

“The national and international reputation of Liverpool continues to be influenced by European Capital of Culture a decade on.”

Institute of Cultural Capital

The-Beatles-Liverpool-Property

The city was also granted World Heritage Status in 2004, in honour of its waterfront and the trio of impressive Edwardian buildings known as the Three Graces. This puts Liverpool in some extremely good company: other World Heritage sites around the world include the pyramids of Egypt, the  Grand Canyon and the Taj Mahal.

Liverpool is the birthplace of The Beatles – and two of England’s most successful football clubs: Liverpool FC and Everton FC.

And did you know that Liverpool has more museums and galleries than any other UK city, outside of London?

Transport Infrastructure

Virgin-Train-Liverpool-to-London

You won’t have any problem travelling into, within and out of Liverpool.  With its world-class transport infrastructure and connections, you are never too far from another UK city or international destination.

  • Just over a mere 2 hours by train to London, with hourly trains available from Liverpool Lime Street Station
  • Excellent road and rail links with other major UK cities
  • Fancy a trip abroad?  Liverpool airport serves over 70 destinations throughout the UK and across Europe
  • Home to one of the largest, busiest and most diverse ports in the UK

Liverpool is situated in a densely-populated region of the UK, with over 15 million people living within a 2-hour drive.

Liverpool’s world-class infrastructure means that it is well set to handle its expected population growth and provides good access for foreign direct investment (FDI) initiatives.

Regenerate and Grow

liver-building-liverpool

Liverpool’s £14 billion regeneration is in full swing, with monies allocated for a range of economic initiatives including Ten Streets, The Knowledge Quarter and The Anfield Project, amongst others.  And that’s not all.  According to Regenerating Liverpool:

“In the next five years Liverpool will deliver 10,000 new homes, Everton Football Club’s new stadium, a new cruise terminal, a new TV and Film hub, £250m of road infrastructure and 2 million sq ft of commercial office space.” 

Click here to read my full report about what is driving Liverpool’s Regeneration and Grow strategy: “Regeneration of Liverpool – A Property Market On The Rise”.

Conclusion

Any property market that is showing strong property growth and high rental yields is one that is not to be missed – this is the combination that all smart property investors are looking to invest in and grow their property portfolio.

Liverpool is just that market – with around 5% growth and combining this growth with rental yields above 9%; this is what I call a top buy-to-let property hotspot.

You see, when we invest in property, the rental income needs to be there to cover our expenses over the medium to long term.

After expenses are covered, we benefit from the surplus income, which can be used to fund our lifestyle or even to create passive income – and if you have enough of this passive income, then you can quit your job or retire if you so wish. 

Or even take advantage of the next opportunity, which in turn allows you to obtain even more income…

This window of opportunity will not last forever, because as the market gets more popular, prices will start to increase and when prices grow, we usually see the opposite in rental yield – a decline.

Let me pose a couple of questions.

Liverpool-buy-to-let-growth

When was the best time to have invested in a Liverpool buy-to-let?

If I were to answer this question, I would have said eight years ago, which is when prices were about half what they are today, but rental yields were still stable, even back then.

My second question is:

When is the second-best time to invest in Liverpool buy-to-let?

My answer to this one is simply NOW!

My view is that, in eight years, Liverpool property prices will be substantially higher than today.

This is one of the reasons I am investing in Liverpool. I see a market that still has growth and good income. The fundamentals are all there for us to be positive about investing in Liverpool.

If you are in the market for a buy-to-let investment that will balance good capital growth with a good rental return, buying a property in Liverpool should be a top priority.

Don’t allow another window of opportunity to close on you — reserve your Liverpool investment property right away.

Click the following link to review and buy discounted Liverpool Property: Liverpool buy-to-let properties for sale >>>

You can read the Hometrack’s – UK Cities House Price Index, by clicking here.

Do you agree or disagree that “NOW” is the time to buy an investment property in Liverpool? Leave your comments below.

Loxley

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