Liverpool is an ancient city that offers modern residents a superb blend of culture, heritage, leisure and economic opportunity. Over 800 years old, the city has held the titles of European Capital of Culture and World Capital City of Pop (thanks in large part to the legacy of The Beatles). Buy-to-let property in Liverpool also means that the city has plenty to offer to investors.
Present-day Liverpool is a thriving metropolis that attracts tourists from around the world. With World Heritage Sites scattered throughout the city, along with an excellent retail and restaurant scene, Liverpool has something to offer everyone. For sports fans, there are two football clubs (Liverpool and Everton), as well as the world-famous Grand National horseracing course at Aintree.
Liverpool’s economy is one of the largest in the UK. The Liverpool Economic Briefing 2016 provides the latest employment, jobs and business figures for the city. These show that employee jobs in Liverpool city region grew by 2.5% in 2014, with the city seeing relatively large growth in private sector employment. Driven by entrepreneurs in companies of all shapes and sizes, Liverpool’s private sector jobs increased by 8.1% in the years to 2014.
Considered over the longer-term (1998-2014), Liverpool’s employment growth stands at 13.5%, just ahead of the UK average of 13.4%. The figures provide a strong backdrop for those interested in buy-to-let property investment in Liverpool.
Liverpool’s economy is dominated by service sector industries including public administration, education, health, banking, finance and insurance. Tourism is also an important part of the city’s economic offering; figures from the Liverpool City Region Local Enterprise Partnership show that the city’s 54 million annual visitors are now worth some £3.8 billion in income to the local economy, supporting more than 49,000 jobs.
Liverpool’s economy is one of the most buoyant in the UK. CV-Library’s league table of the strongest job growth in the country showed that Liverpool experienced a 34.8% surge in job vacancies in Q1 2016, making it the city with the strongest year-on-year job growth in the country. Graduates, young professionals and buy-to-let investors in Liverpool are all keen to benefit from this position.
Liverpool is a buzzing hub of entrepreneurialism and energetic startups. Santander chose Liverpool as the location of its first business incubator and Launch22 opened its first non-London incubator there. The SparkUp accelerator programme launched by the local Chamber of Commerce has encouraged the blossoming culture, positioning Liverpool as the north of England’s front-runner so far as new entrepreneurial talent is concerned.
The Northern Powerhouse initiative, to which Prime Minister Theresa May allocated a new cash injection of £556m in January 2017, has Liverpool as one of its key cities, with a focus on funding transport and infrastructure projects. These initiatives have been designed to put the city at the forefront of the UK’s leading business destinations.
The work of the Northern Powerhouse is backed up by a number of regeneration schemes. Regeneration in Liverpool is undertaken as part of the ambitious Liverpool Vision. The UK’s first urban regeneration company, Liverpool Vision was set up in 1999 to lead the physical transformation of the city. The results were impressive, with vast swathes of the city renewed, from individual projects such as museums, parks and stations to whole areas such as the Baltic Triangle and the Commercial District. Attention has now turned to New Chinatown and Royal Liverpool.
Regeneration in Liverpool is focused on several key projects at present. The £35 million regeneration of Lime Street station is in response to Network Rail’s projection that morning peak passenger numbers will double by 2043, from 20,000 to 40,000. The first phase of the regeneration is due for completion by September 2017, with work finished by autumn 2018.
The £260 million regeneration of Anfield is another example of Liverpool’s commitment to its vision of a dynamic future as a key part of the UK economy. Housing, parks, the expansion of the football stadium, a new public square and a range of new developments and retail outlets are all incorporated into the exciting, long-term vision.
A further important strand of the city’s future is the proposed Liverpool2 deep-water port, which has the potential to substantially alter distribution within the UK, as part of the £1 billion Superport logistics cluster.
Such a robust cultural and leisure offering, combined with a welcoming business environment and clear commitment to the future, has seen Liverpool’s population expand rapidly in recent years. According to the World Population Review, Liverpool’s residents total an estimated 467,000.
Liverpool’s growth in population, along with a demographic shift that has seen emerging young talent flock to the city, has altered the landscape of its property market significantly. Youthful entrepreneurs are looking for high-end homes in perfect city centre locations. The result is a thriving market for rental property in Liverpool that has seen buy-to-let properties boom.
The 2016 TotallyMoney Buy-to-Let Yield Map saw Liverpool comfortably included as one of the top ten postcode districts in the UK for high yields, while The Times flagged the city as one of the top five places for rental yields in the UK in 2016.
Meanwhile, Martin & Co Woolton has found that Liverpool tenants are, “happy to pay a little more to rent a really desirable property.” Great news for buy-to-let investors!
Liverpool’s property prices are reflecting the city’s popularity. Apartment prices have risen by 21.87% in the past five years, according to Zoopla, reflecting the potential for capital growth. This demonstrates the potential for excellent capital growth enjoyed by buy-to-let property investors in Liverpool.
With healthy yields, strong tenant demand and increasing property values, Liverpool has all the elements required by savvy investors looking to maximise profits from their buy-to-let property portfolio.