Blog Post

Liverpool Offers Tremendous Buy To Let Opportunities

Jun 28, 2018, 14:19 PM by Rebecca Galgut

There is no denying that many landlords are considering exiting the buy-to-let market. Savills have provided information that suggests buy-to-let lending fell by 26% in 2017 and NAEA Propertymark have suggested that over 300,000 landlords in the UK intend to sell some or all their property portfolio in the next 12 months. This is likely to have an enormous impact on the property and rental market across the country, and it is natural that many people are reviewing the buy-to-let market.

The fact that so many landlords and investors look set to exit the buy-to-let market suggests that all is not well in the market. There have been substantial changes to taxation, there has been the removal of mortgage interest relief, there is a higher level of stamp duty for investors and mortgage borrowing for this sector is now subject to greater scrutiny. All these factors combine with the Government’s drive to assist first-time buyers get on to the property ladder, and a lot of landlords feel as though the market is no longer appealing to them.

There is still high demand for rental accommodation

However, there is still going to be a significant demand for rental property because not everyone can afford to buy a home or event wants to buy property. There is also the fact that some parts of the country offer appealing returns for buy-to-let investors, and Liverpool is a city that is well worth considering when you’re looking to enjoy a good return on investment.

Liverpool is enjoying a renaissance now with a considerable number of developments taking place. There is also the fact that Liverpool has a student population more than 70,000 which creates a viable platform for the rental market.

Liverpool ranks highly with respect to rental yields

A recent study by a comparison website has listed three Liverpool postcode areas as being in the Top 10 for most profitable locations for investors and landlords.

The top spot in the study falls to L7, which represents Kensington, Fairfield and Edge Hill, and this area has an average rental yield of 11.79%. Second place in the study is L6 and this covers the city centre of Liverpool, Anfield, Everton, Fairfield, Tuebrook and Kensington. L6 offers an average rental yield of 11.59%. These two postcode areas have some overlap and the fact that they are conveniently located to the three Universities in the city has helped them to be so desirable by tenants and investors alike.

It must be said that developments in Liverpool are creating a fresh look for the city with Liverpool Waters leading the way. This is changing the city centre and the north of Liverpool with a total of five new neighbourhoods being planned, as well as office space being introduced to the area.

The Metalworks Development is also set to bring around 300 apartments to an area located close to the business district of the city. This should ensure that people can enjoy homes close to work and entertainment options, which is exactly what many modern buyers are calling out for.

Work is also set to take place in the Docklands area offering creating a new creative district. Further development is also expected around the new stadium for Everton Football Club, which will further impact on the Docklands area.

Liverpool is a city with a tremendous history, but it is also a city with an exciting future. Therefore, investors should consider Liverpool when they want to find a fun area that will offer impressive returns on investment. If you want to learn more about Liverpool property opportunities, contact Peter Anthony and we will be happy to assist you



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