Tenant demand is the catalyst behind successful buy to let property investments, with properties in hotspot areas increasingly attracting surge of people to its flourishing regions. It raises the question, what value does a property have without the influx in tenants driving the demand?
Population figures are an indicator essential to sourcing the best locations for securing a buy to let investment, and Liverpool is climbing to the forefront waiting to catch the eye of discerning investors looking to entrust their money whilst obtaining the biggest income. In 2018, the total population of the modern metropolis stands at 880,000 which is 0.38% rise from three years ago in 2015.
Just last year alone the population of Liverpool City Centre is reported to have doubled throughout the past decade, with the largest demographic falling into the 17-29 age bracket. Sitting currently at nearly 30,000 people living in the heart of the city, it shows no signs of slowing down.
A wealth of different talents, professions and ages all flood to the city year upon year, anchoring its reputation as a mixed-use destination and a melting pot of diverse cultures and backgrounds. Students, graduates and young professionals are ideal tenants for the plethora of buy to let opportunities around Liverpool as three established universities welcome the burgeoning UK population each academic year. Not to mention, 32% of people relocate to Liverpool to study and continue to reside in the area in the search for a job upon completion of their degree, 15% exit the city for university elsewhere but still return to seek job prospects later and 27% occupy Liverpool for work that are not from the city originally.
With Liverpool set to embark on accelerated growth rates year upon year, predictions suggest the population is expected to reach 970,000 by 2030, which will guard the existing robust tenant demand and propel Liverpool into the limelight as a prevailing buy to let investment location.
Regeneration is a radical stimulant of the city in terms of heightening its performance, ensuring a stellar reputation and creating a powerful outlook for the future, all of which have captured the approval of many investor’s placing Liverpool firmly on their radar. Formerly, the city was noted as an urban zone vying for recognition from the likes of young people, tourists and investors. More recently, Liverpool is glorified internationally as a world class hotbed ideal to source any investor’s dream – high rental yields and unparalleled opportunity for capital growth.
Liverpool has undergone a dramatic £14 billion transformation; therefore, it is no surprise it has been coined one of the coolest places to live in the UK. Liverpool One set the bar high for development schemes back in 2008, with one of the first of its kind and a cash injection of over £900 million fuelling future schemes set in the pipeline such as L2 Superport, Project Jennifer, Ropewalks and the edgy district of the Baltic Triangle.
With a notable motive to improve properties and commercial spaces, it is not only residential properties that are set to benefit from advancements across the city’s perimeter. Liverpool’s Knowledge Quarter presents an enviable neighbourhood for student developments adjacent to the £335 million Royal University Teaching Hospital where students can work, train, live and study.
But the most momentous project of all is Liverpool Waters as it is set to define Liverpool’s iconic waterfront district by outlaying a prodigious, multi-use destination to create opportunities for investment. Recognised as one of the biggest ever recorded UK investments ever at £5.6 billion, investors are following the cash that is flooding into the area.
RW Invest property specialists state Liverpool Waters aspires not only to cater for commercial office space, but also residential accommodation,
“An urban capsule for modern-day living, every residential development will offer tenants a lifestyle like no other, residing close to the city centre and all of its attractions and amenities, whilst living within one of the UK’s biggest ever acts of renaissance.”
Trends in property prices remain consistent across the city, far exceeding rival destinations in southern regions, but as the city gains in popularity from people both from the UK and overseas it is quickly becoming more desirable, especially as property prices are likely to rise of the forthcoming years. Investing now is key, to reap the benefits of high capital appreciation in the future when assets will be worth significantly more. Furthermore, rental yields stand strong reaching heights of 12% in some Liverpool postcodes.