It is no doubt that Liverpool is a rental market hotspot, across the UK, the demand for rental properties remains high with the number of tenants choosing to rent privately increasing year on year.
It is estimated that nearly 4 million individuals currently rent in the UK with experts predicting that by the year 2025, 59% of 20 to 39-year-olds will be privately renting properties.
The UK rental market is strong however some cities are performing better than others; research carried out by leading credit broker, Totally Money, looked at the annual yields of UK cities, establishing the most lucrative locations for buy-to-let properties.
Totally Money reviewed the annual yields on 500,000 buy-to-let properties in Britain and their research highlighted that while landlords in London are struggling to make a decent return, those letting out properties in other UK cities were seeing a healthy return on their investment.
Liverpool was a city which came out on top with the city being crowned one of the most profitable places in the UK for landlords. From the cities thriving student population to cosmopolitan feel and great network connections, it’s no surprise the city has seen an increase in investment and popularity, ensuring it tops the list as a rental market hotspot.
Top 20 Rental Market Hotspots
Areas such as Kensington, Edge Hill and the city centre are hugely popular with students and millennial tenants who work and study in the city, boasting flexibility with their rental options.
The study found that landlords in the city of Liverpool can enjoy returns of around 12.63%, which is high compared to London’s SE1 area where landlords see an annual yield of just 2.36%. The table below highlights the top postcodes for rental returns with Liverpool boasting the top 3 places with L7, L6 and L14 areas with three more Liverpool postcodes featuring in the top 25.
The Development of Liverpool
The demand for high-quality rental properties in Liverpool is set to continue for years to come with the number of investment and development in the city continuing to grow ensuring it is a rental market hotspot.
Major areas of the city are currently under development from the North Point development at Pall Mall to Wolstenholme Square and Liverpool Waters there is plenty for investors to be excited about.
Investors with properties in the city are achieving higher yields than anywhere else in the UK. This is thanks to the combination of low average home prices at £122,283 and strong rents at £1,021 per month, making Liverpool the perfect place for investors looking to make a decent return on their investment.
With rental yields averaging 8% in the city, it’s no surprise why many are choosing to invest their money or savings into Liverpool opposed to the traditional method of putting their money in the bank.
People are fed up with their savings earning so little sat in banks that they’re looking for alternative ways to a) keep their money safe and b) enjoy a decent return.
Signature Living is one of the UK’s most exciting property developers and operators having started with a single apartment in Liverpool city centre in 2008. Almost 10 years later the group have developed several award-winning hotels and changed the way developments are funded, choosing investor-led backing over bank loans.
Each hotel room & residential apartment is sold to investors, earning an impressive return with the added benefit of flexibility, meaning the investor or developer can buy back the unit between years 3-10 at a generous rate.
Liverpool is a city which continues to grow with visitor numbers and student population increasing year on year. The property market in the city continues to be impressive and the inward investment and current developments underway is a positive forecast for the future of the city.
To discover more about Liverpool as a rental market hotspot, and to become a part of Signature Living’s success, call one of our sales advisors today to find out more about our latest investment opportunities in the UK’s leading rental hotspot.