North-west England has become popular for investment in recent years and in particular, Liverpool.
Although recovery was slow here after the 2008 crash, with Liverpool one of the weakest cities in the UK in terms of house price growth, there have been marked signs of improvement in more recent years. Houses on Merseyside are affordable which has, of course, encouraged growth. The average sales price of a Merseyside / Liverpool home is around 60% of the England and Wales average.
As in many regions, demand far outstrips supply which further fuels growth.
Of course, like elsewhere, it looks like annual growth in house prices may well decline to single figures depending on the Brexit outcome. Potential buyers are inclined to wait and see how the economy will be affected before spending their hard-earned cash.
However, with property values sitting at quite low levels and rental values continuing to increase, buy-to-let investors could do worse than take a look at investing in a Liverpool property.
The Merseyside property market benefits from many good points:
- Foreign investment is growing and the city’s business scene is booming, with the city becoming home to businesses large and small, including creative start-ups. This has resulted in Liverpool becoming the UK’s second fastest growing city in terms of digital enterprises.
- Merseyside’s student population has also grown steadily to reach some 52,000 attending local universities or colleges, thus providing a steady stream of tenants for buy-to-let landlords. Many Chinese investors who were themselves students in Liverpool are now looking for buy-to-let student properties or even homes for their own children, now studying themselves in Liverpool. East Asian and Middle Eastern investors are even snapping up full student halls of residence that can sell for around the £20million mark.
- Slightly more than 42% of Liverpool’s population is aged under 30 as compared to the English average of 37%, another market eager to leave home and either buy their own first home or, in many cases, looking for a rental property.
- Although new-builds may be scaled back, some 5,000 new homes are currently under construction while a number of brownfield sites are being identified for affordable homes to be built in the not-too-distant future. This could lead to the construction of a further 1,500 new homes in a Council-led plan and some 1,000 older homes being refurbished before the end of the decade.
- There are numerous high-end areas that are attractive to buyers from Liverpool’s two major football teams.
Although the majority of houses sold still tends to be terraced properties, there are large period properties available in and around the city, particularly in areas that are close to the coast and golf courses. A suburb like Sefton that is home to both Aintree Race Course and Royal Birkdale Golf Club is highly sought after, as is property in The Wirral.
So Liverpool and Merseyside currently offer a wide range of opportunities at both ends of the housing price spectrum and should prove to be quite rewarding for investors, whether in the sales market or the rental market. This is even before the much-talked-about "Northern Powerhouse" dream becomes a reality, with improved road and rail links between Liverpool, Leeds and Manchester. Now is surely a great time to invest in Merseyside!
Cailean Mortgages are happy to discuss mortgages, mortgage protection insurance, first-time buyer mortgages and re-mortgaging with you if you’re considering a purchase on Merseyside. Just give us a call on 0131 510 7071 or complete our contact form for a rapid reply.
Image courtesy of Chris Howells