IN the North of England, the Merseyside region has been gaining increased attention as a property investment hotspot. There are number of reasons why this area has been in the headlines for property, from the best rental yields, to growing student numbers, to major regeneration projects to the highest house price growth in the country. So, should you invest in Merseyside? We think so.
Regeneration has been one of the main reasons why so much attention has been placed on the North West. Both Liverpool and Wirral have benefitted from extensive regeneration and development schemes. Major projects such as Liverpool One, Conway Park, Wirral Waters, the Knowledge Quarter and Liverpool Waters have had a dramatic impact. Contemporary apartment buildings have taken the place of crumbling old warehouses, new shopping centres have replaced empty car parks and the entire Liverpool and Wirral region is benefiting from these efforts. There is rising demand for high quality housing in the area, with numerous developers flocking to both sides of the River Mersey. The Northern Powerhouse strategy has also been influential, with investment from around the world pouring into the North West.
The Best Rental Yields
In a study by Totally Money it was found that Merseyside was the best performing region in the country when it came to rental yields. Rental yields are the monthly income that landlords receive from their property compared to how much they purchased it for. Liverpool topped the tables with its L7 postcode boasting rental yields of 11.79%, and L6 came in second with an impressive rental yield of 11.59%. These areas are perfect for buy to let investors who are looking to maximise their income.
Surging Student Populations
The student populations of Liverpool and the Wirral are also on the rise. Home to some of the UK’s best universities, like the University of Liverpool, Liverpool John Moores, LIPA, Liverpool Hope and Edge Hill, Liverpool has been a popular student destination for many years. The neighbouring Wirral peninsula is also becoming a hotspot for students with the new University of Chester dedicated health and nursing education facility which opened in September 2018 in Birkenhead. It is also home to the Engineering College and Wirral Metropolitan College. This high volume of students means that student property in the Wirral and Liverpool student accommodation provide investors with some lucrative opportunities. Modern purpose-built student accommodation by RW Invest in the area is perfect for those looking to invest in this thriving region.
Great House Prices
House prices in the area are also incredibly affordable, especially compared to the South of England. The current average house price in the Wirral is £183,764, according to Rightmove and the average house price in Liverpool is £160,383. This is in strong contrast with cities in the south like Oxford where the average property price is £497,770 and Bath which is £475,169. As well as having great value house prices, the area is also experience considerable property price growth. House prices are on the rise in the North West, with Liverpool leading the way. It has the best house price growth in the country – nearly 8% over the last 12 months. This means it’s the perfect time to invest, when property prices are still affordable, but will also increase in value.