Why Investors Should Look to Liverpool for the Best Buy-To-Let Returns

Prices are rising faster in Liverpool than any other city. Read more about the reasons why investors are buying properties in Liverpool. Liverpool buy-to-let is on the rise.

Prices Are Rising Faster In Liverpool Than Any Other City: 5% Growth

However, the household income a first-time buyer would need in order to buy a home is also lower in Liverpool than virtually anywhere else in the country. This would indicate that prices still have plenty of room to rise, making it an ideal time for you to invest in Liverpool.

These statistics are not a surprise to me, because I have spent the last six months doing some deep research into Liverpool’s property market and spent many hours walking the streets, so that I could get a good handle on what is driving the market – alongside securing development sites for Colordarcy to build on.

The first thing that anyone who has spent any time in Liverpool will tell you is that the people are some of the friendliest you can find anywhere in the world.

I have never been stopped so many times in the street to see if I needed any help or simply to have a chat.

Liverpool is a vibrant city with many trendy bars and entertainment hubs. If you fancy a great breakfast when you next visit, do check out The Quarter: http://www.thequarteruk.com/gallery/. You may just spot me there having an omelette and my favourite almond latte.

Well, enough of the niceties. What about the investment picture?

Reading through Hometrack’s UK Cities House Price Index, Liverpool is showing the fastest price growth and combines this with being one of the most affordable cities. To the seasoned professional, this is a great indicator that there is more rapid growth to come.

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

Source: Zoopla House Price Indices, powered by Hometrack

Liverpool – in facts and figures

Low Property Prices

Liverpool property prices are among the lowest in the country, with an average price of £123,000 compared with the UK average of £219,000 – and London at £482,000.

These low prices not only provide investors with a low barrier to entry to the market but are also affordable for locals to buy their own homes.

A property market is always stronger when it is affordable for investors and local homebuyers. This dynamic means that when it is time to exit the market, you benefit from having two potential buyers – the investor and the homebuyer.

£14 Billion Regeneration Programme

According to Regenerating Liverpool  (http://regeneratingliverpool.com/) the city is investing £14 billion for regeneration across the city into homes and infrastructure.

The city council is leading this £14bn regeneration charge, with other funds coming from industry and institutional investors.

Monies have been allocated for an additional cruise terminal, new homes, road infrastructure and a range of business growth initiatives.

Liverpool Local Plan’s goal is to create 38,000 new jobs and 35,000 new homes between now and 2033 – and it is forecast that Liverpool’s population will increase by 500,000 over this period.

All the above will provide strong economic fundamentals to drive the growth of Liverpool’s economy, now and in the future.

Conclusion

It is crystal clear that Liverpool’s buy-to-let property market still has room for price growth.

With the household income which a first-time buyer would need to buy a home lower in Liverpool than anywhere else in the country, this is a clear indicator that the market will continue to have high demand, and this naturally leads to higher prices.

Liverpool’s property market also provides some of the highest rental returns in the country, which makes it easier for the investor to hold and maintain their property over the medium to long term, while providing a good income return.

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

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

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

So, what are your thoughts on Liverpool’s property market? Leave your comments below.

Loxley