The latest analysis has revealed a surge of tenant demand across Liverpool – up 19% year on year, with an average of 6.6 tenants now chasing every shared room of a new rental property.
According to the report, Liverpool is experiencing a booming BTL market, with demand for high-end, quality rental accommodation outstripping supply.
Liverpool boasts a student population of around 60,000 and 60% of them require accommodation. There is high demand for new and renovated property for the sole purpose of the university students, many of which are looking for affordable, shared accommodation. Over the last 12 months, student rents in the city have risen by 23% and now sit at an average of £128 per week as at May 2017.
Liverpool is booming. A multi-million pound investment in economic regeneration is transforming the city and over the last decade, the it has attracted more than £5 billion of investment in property, infrastructure and services. According to Knight Knox, these regeneration projects have seen Liverpool become home to some of Britain’s most ambitious residential, commercial and leisure developments, spearheaded by the widely successful Liverpool ONE project, the shopping and leisure destination, which has refocused the whole city centre towards the waterfront.
There is no doubt that buy-to-let investment in Liverpool has gone from strength to strength, with landlords enjoying yields of over 10%. Many property investors are clamoring to snap up HMO properties in the city’s BTL hotspots, such as the L6, L7, L8 and L15 postcodes. With savings earning very little, many investors are recognising that BTL property can give them much better returns.
Rental yields within one mile radius from the Universities/City are excellent. Our research shows that student house share rents start at around £85 per week per room, including bills. However, ensuites can be as high as £115 per week. Investors can acquire a high quality three bed, fully-let HMO near a university, which will house students from £120,000 upwards. The return on investment is very attractive too, with an average of 13% per annum (8% cash rental and 5% capital growth). We have seen almost 32% increase in the sale of our arm chair HMO deals over the last 12 months compared to 2015-2016”
To speak to one of our team at Belvoir Liverpool Central then please conatct us on 0151 231 1613 or email liverpoolcentral@belvoir.co.uk
