From its heady days as one of Europe’s most important ports to the more recent achievement of being the only UK city ever to be crowned European Capital of Culture, Liverpool has earned itself a proud global reputation. To this day, the city continues to outperform the UK as a whole on any number of metrics, making it one of the country’s most exciting investment prospects.
“Whether you look at its property sector, economic situation or job market, Liverpool consistently beats the UK average. It’s a city full of energy and entrepreneurialism, as well as solid financial credentials. Right now, few UK cities can claim to be performing so well across such a wide range of measures, and that positive outlook is set to continue for at least the next five years.” Simon Clarke, Director, Acentus Real Estate.
Liverpool’s GDP, according to the recent Find the Gap Northern England report from JLL, is forecast to grow at a rate of 2.1% per annum over the coming five years, compared to 2.0% for the UK as a whole. The city’s employment growth is projected to be almost 1% per annum over the same period, compared to 0.5% nationally.
Mirroring this solid economic backdrop is a property sector that is going from strength to strength. Hometrack’s April 2019 UK Cities House Price Index shows price growth of 4.9% in the year to April 2019, compared to an average of just 2.2% across the UK’s 20 major cities. The figure means that Liverpool ranks joint second for house price growth over the past year.
Not only that, but Totally Money has just ranked Liverpool’s centre, Edge Hill, Fairfield and Kensington districts as the most profitable places in the UK to be a buy-to-let landlord. The study found that properties in these areas generated an average return of 12.63% annually.
Liverpool’s low house prices were a key reason for this. JLL reports an average price of £195,000 for a two-bedroom apartment, along with an average rent of £1,000 pcm. That rental figure represents an 8.1% increase over the past 12 months. Looking forward, meanwhile, further growth is projected, with both house prices and rents in Liverpool due to increase faster than the UK average between now and 2023. JLL projects house price rises of 2.5% per year from 2020 to 2023 inclusive, with rents rising by 3% per year from 2020 to 2022 and by 2.5% in 2023.
According to independent property service Acentus Real Estate, this stable long-term outlook is one of the reasons that Liverpool is performing so well in terms of its investment credentials at present. Towards the end of last year, IBM ranked the Liverpool-Manchester metropolitan area as one of the top 10 cities in the world for foreign direct investment. Acentus Director Simon Clarke reports that Liverpool’s global reputation is key to its success as an investment location.
“What we see in Liverpool is that special combination of superb market fundamentals and a strong global reputation. It makes the city one of the most exciting locations in the UK when it comes to investing in cutting edge property developments.” Simon Clarke, Director, Acentus Real Estate.
The latest development in the city to attract global interest is The Metalworks, in the vibrant Pumpfields L3 postcode district. With a premium location that is sought after by both families and professionals, the one-bedroom and two-bedroom/two-bathroom apartments will deliver a superior accommodation offering, complete with 24/7 reception and concierge service, spacious communal gardens on the first floor and ample car and bicycle parking. Prices start from £108,360, with 7% assured rental yields for the first two years.
As well as demand from working professionals and their families, Liverpool enjoys strong demand for its rented apartments from students looking to live centrally, with the city’s three universities drawing in talented young learners from across the UK (and beyond). JLL observes that Liverpool is suffering from a “lack of higher spec private sale development,” along with “significant supply shortfalls in the face of an increase in demand from people wanting to live in the core city centres.”
The Metalworks will address both issues in one well-located development, positioned perfectly to capitalise on Liverpool’s current and future success.
For more information, visit acentusrealestate.com or call 0151 958 0440 for details.