Liverpool is one of the hottest cities in the UK to invest in. Since the turn of the century, it’s been the target for many investors looking to take advantage of a booming market and healthy rental yields.
This is in no small part due to the large student population Liverpool attracts year on year, a number estimated to be up to 60,000 across its five main universities and colleges. The city boasts a thriving nightlife, rich musical heritage and renowned sports teams that boost the local economy and keep visitors coming every year.
Liverpool has been subject to many investment schemes in recent years, with improvements made to many residential housing estates and the upmarket Albert Docks area. There’s a self-evident history of trade links with global markets, again attracting major property and business investors into the city.
If you’re considering purchasing property in Liverpool, here are 4 key areas that our local property experts believe are worth looking at before making a final decision.
City Centre (L1, L2 &L3 Postcodes)
The L1 postcode in Liverpool recently came out on top as the most desirable place to invest in across England and Wales. The survey, conducted by Which? in 2016, focused on the price of property in the area as well as its potential to increase in value. Over the past three years, house prices in the Liverpool city centre have risen by 40% yet still remain below the national average of £200,000.
A prime city centre location with relatively cheap housing has turned this area of Liverpool into an investment paradise. Reflecting the North-West as a whole, the L1 postcode generates outstanding rental yields, especially with the two main universities in close proximity. Likewise, transport links are also fantastic with Liverpool Lime Street and Liverpool Central train stations close by.
With investment also comes regeneration, seen here with a £200 million scheme planned for the Tribeca Fields area, as well as the recent transformation of Albert Docks and Liverpool One into major visitor attractions. This in turn will create jobs and new businesses, boost the local economy and thus attract further homebuyers and tenants – promising signs for property investors in the city centre.
Kensington/Edge Hill (L6 &L7 Postcodes)
One of the most prominent postcodes in Liverpool is L7, comprising of the Edge Hill, Fairfield and Kensington areas, as well as parts of the city centre. Impressive buy-to-let yields of around 9% have made these areas attractive to prospective buyers. With close proximity to the two main universities, a steady stream of wealthy international students look to Kensington postcode each year, guaranteeing a consistent and impressive return on investment.
Liverpool and Everton football clubs are located close by, providing a major boost to the local economy and attracting ultra-passionate fans every week. High rental yields are helped by relatively less expensive properties compared to the national average.
Aintree (L10 Postcodes)
The L10 postcode is made up of two main suburbs, Aintree and Fazakerley. They are more affluent areas of Liverpool, with more semi and detached properties to invest in. Although the potential buy-to-let yields aren’t as high as some other areas in the city, investors are still attracted here due to the fantastic transport links and local amenities. Aintree Racecourse is also located nearby, home to the famous Grand National every April which attracts visitors from all over the world.
Toxteth (L8 Postcodes)
Toxteth in general is an attractive part of Liverpool to invest in. With lots of properties, its close proximity to the three main Liverpool universities guarantees a steady stream of tenants every year, along with rental yields of around 7-10%.
Transport into the city centre is also very accessible, especially with properties near Aigburth Road such as the newly renovated Coleman building. Brunswick train station is also close by, providing quick access into the city centre and across the North-West.
Despite some previous prejudices about the Toxteth area, signs of social instability have been eradicated with numerous investment schemes and a stronger local economy. The older, more traditional homes have been modernised but still retain their original charisma, providing a wealth of opportunities for property investors.
If you have any further questions regarding Investing in Liverpool feel free to give Property Lane, your local Liverpool estate agent a call on 0151 329 3639 or visit our website at www.property-lane.co.uk to find out more.