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Location Hotspot: Liverpool

by Nikki Dale -

Liverpool’s cosmopolitan spirit stems from its well-known industrial, maritime and cultural heritage. In 2008, the city was presented with England’s first-ever European Capital of Culture award. UNESCO classified Liverpool as a World Heritage City for its large-scale ports, which played an important role in the growth of the British Empire.

Most famous for being the birthplace of The Beatles, Liverpool’s edgy pop scene has continued to nurture many world-famous bands and musicians. Today, Liverpool is a major tourist destination and one of the UK’s fastest growing urban economies outside London. The city is also home to some of the UK’s top universities – 66k student population – and globally respected sporting brands, including two leading Premier League football clubs.

Liverpool old docks

Northern Powerhouse

Liverpool is at the core of the UK government’s £7 billion investment to help cities in Northern England ‘pool their strength and take on the world.’

Regeneration and investment include:

  • £5.5 billion investment in Liverpool Waters Enterprise Regeneration Zone
  • £340 million for the Northern Powerhouse Rail (HS3), Liverpool City Region,
  • £500 million investment into small to medium businesses. Among regional cities
  • Liverpool has the second highest growth in businesses at 16.1% after Manchester (16.2%)
  • £3 billion Mayor-led investment for Liverpool, Greater Manchester, Sheffield, and Tees Valley to boost local economic growth from 2017.

Liverpool’s Housing Market

Liverpool’s property prices have risen by 22.7% over the past five years, with apartments going up even more – by 25.2%. Liverpool was the ninth fastest growing city for house prices in the UK in 2016, with year on year growth of up to 7%.

  • 16% projected rental growth by 2021
  • 6% below the pre-recession peak property price
  • Up to 7% – one of the strongest average rental yields in the UK
  • Over 6% year-on-year annual capital growth rate (2018)

Liverpool Royal Liver Building

A recent population boom, paired with an undersupply of housing, makes for an exciting investment case. The city’s population rose from 435,500 in 2001 to 466,400 in 2011. Meanwhile, Liverpool has been building homes at an average rate of 713 per year between April 2009 and March 2016. The Home Builders Federation estimates that the city needs a minimum of 3,000 homes per year to keep up with demand.

Demand

  • Population to increase by 83,000 to 1.6 million by 2040
  • Creation of over 100,000 additional jobs by 2040
  • A net increase of 20,000 businesses by 2040
  • 60% graduate retention rate with a student population of 66,000. Strong growing demand from graduates and young professionals from the technology, science and digital sectors.
  • A low business occupancy cost gives opportunities to start-up companies and small-to-medium enterprises

Supply

  • 25% below the Mayor’s 2016 housing target of building 6,500 new homes
  • Number of new homes completed in 2016 is 50% higher than in 2015
  • As of November 2016, the number of new homes proposed in the city centre doubled to almost 9,000

Independent credit-broker Totally Money in their last Buy-to-Let Yield Property Investment Report, saw the university cities climbing the table of top-performing postcode areas. And despite increasing pressure on diminishing margins, landlords could still see rental yields in excess of 12% in the best postcode area.

The key findings from TotallyMoney Buy-to-Let Yield Survey:

  • Liverpool’s L7 remains in the top spot. The postcode covers City Centre, Edge Hill, Fairfield and Kensington and its proximity to two of Liverpool’s three universities makes it a favourite for student lets.
  • Liverpool postcodes also dominate the top 25 on the buy-to-let yield table

READ MORE

Student Life in Liverpool

Liverpool is home to three higher education institutions: the University of Liverpool, Liverpool John Moores University and Liverpool Hope University. Together they have an overall population of over 50,000 full-time students.  Following the removal of the student cap in 2015/2016, student numbers are only expected to increase significantly.

 £1billion investment in the Liverpool Knowledge Quarter will further reinforce Liverpool’s reputation globally as an education hub ensuring strong future growth in student numbers.

  • 117% increase in international students at University of Liverpool since 2003/2004
  • Increase of 6,085 (17%) students in Liverpool population since 2003/2004
  • 26% increase in students at University of Liverpool since 2003/2004

The plans to invest £1bn to expand Liverpool’s Knowledge Quarter is to create a 1.800,000 sqft science, health, and technology hub, attracting world-class companies and reinforcing Liverpool’s reputation as a global leader in medicine and technology.

Liverpool

The expansion of the Knowledge Quarter is expected to be a major draw for international students with The University of Liverpool already having over 34% of international students compared to a UK average of 25%.

University of Liverpool

  • Times UK Ranking 2017 was 24th
  • Times World Ranking 2017 was 158th
  • Year Established in 1882
  • Total Full-Time Students attending circa 25,000

Liverpool John Moores

  • Times UK Ranking 2017 was 59th
  • Times World Ranking 2017 was 500-600th
  • Year Established in 1823
  • Total Full-Time Students attending circa 22,000

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