UK is one of the most sought-after international locations for business and investment, and “London” typically comes to mind. However, as prices in London continue to rise, investors are increasingly finding it challenging to find affordable investment opportunities in London and many investors and Londoners are setting their sights outside of London.
For any investors who look North, Liverpool immediately stands out as one of the most enticing cities to invest in.
According to leading real estate house CSI PROP, Liverpool was voted as “The UK’s Buy-To-Let Hotspot” for property investment returns and capital growth. This is no surprise as Liverpool is UK’s second largest regional economy, with the city’s annual economy valued at £28.3 billion and is home to over 43,500 businesses.
Here are 3 reasons why Liverpool is the investment hotspot of 2019:
Liverpool is one of the best-connected cities in the UK
Ideally positioned in the Northwest of the UK, Liverpool enjoys unrivalled ease of access to other major cities in the UK. Commuters can get to Manchester in an hour via direct rail, or to London in just 2 hours. With the proposed extension to “High Speed 2“ (HS2), travel times to other major UK cities are set to be significantly reduced, whilst Merseyrail provides local rail access in and around the city – making travelling around Liverpool city a breeze.
Endless Tourism Potential and the Heart of High Street Retail
The tourist sector in Liverpool is worth more than £3.8billion and it is one of the most visited cities in the UK, welcoming over 54 million people every year. The result of this is a thriving tourism industry that supports over 50,000 jobs in Liverpool.
Hailed as the UK’s leading retail destination after London, the opening of Liverpool ONE – the largest open-air shopping center in the UK has solidified Liverpool’s position at the heart of retail. Aside from retail therapy, Liverpool has a strong background in the music and arts scene as it is home to the Royal Liverpool Philharmonic Orchestra and many other well-known art galleries and museums. For the gastronomes out there, one can find cafés, well-acclaimed restaurants, and pubs serving various cuisine catering to a wide range of budgets.
Londoners are moving to Liverpool for better job opportunities
Liverpool consistently attracts a wide range of young professionals, drawn to the city for its economic potential, creating an enthusiastic, dynamic, forward-thinking workforce in Liverpool.
This has attracted businesses to move to Liverpool to harness this workforce and talent pool. Combine this with the £2 Billion investment poured to boost the city’s Knowledge Quarter, that comprises of 5 Academic Universities and 3 Medical Universities, it is no surprise why multinational companies and even business incubators are moving north-west to Liverpool.
Today, Liverpool is the home to 1.5 million people, and it is the fastest growing city in the UK. The period between 2002 and 2015 saw a 181% increase in population and 42% of the city’s population are currently under the age of 30.
With the increase in student population and workforce, the demand for properties has never been higher. House prices have increased by 7.8% between 2017 – 2018 and the rental market has been the beneficiary of the substantial deficit in housing supply. For several consecutive years, Liverpool has seen a substantial deficit in housing supply as its housing delivery fell considerably below the UK average, yet its population continues to double over the last decade.
With that, the rental market is forecasted to attain above-average yields with Liverpool-based homes yielding averages at 5.05%, which is significantly higher than London at 3.5%.