Liverpool is one of the hottest cities in the UK to invest in. Since the turn of the century, it’s been the target for many investors looking to take advantage of a booming market and healthy rental yields.
This is in no small part due to the large student population Liverpool attracts year on year, a number estimated to be up to 60,000 across its five main universities and colleges. The city boasts a thriving nightlife, rich musical heritage and renowned sports teams that boost the local economy and keep visitors coming every year.
Liverpool has been subject to many investment schemes in recent years, with improvements made to many residential housing estates and the upmarket Albert Docks area. There’s a self-evident history of trade links with global markets, again attracting major property and business investors into the city.
If you’re considering purchasing property in Liverpool, here are six postcodes which are worth looking at before making a final decision.
The L1 postcode in Liverpool recently came out on top as the most desirable place to invest in across England and Wales. The survey, conducted by Which? in 2016, focused on the price of property in the area as well as its potential to increase in value. Over the past three years, house prices in the L1 district have risen by 40% yet still remain below the national average of £200,000.
A prime city centre location with relatively cheap housing has turned this area of Liverpool into an investment paradise. Reflecting the North-West as a whole, the L1 postcode generates outstanding rental yields, especially with the two main universities in close proximity. Likewise, transport links are also fantastic with Liverpool Lime Street and Liverpool Central train stations close by.
With investment also comes regeneration, seen here with a £200 million scheme planned for the Tribeca Fields area, as well as the recent transformation of Albert Docks and Liverpool One into major visitor attractions. This in turn will create jobs and new businesses, boost the local economy and thus attract further homebuyers and tenants – promising signs for property investors in the L1 postcode.
One of the most prominent postcodes in Liverpool is L7, comprising of the Edge Hill, Fairfield and Kensington areas, as well as parts of the city centre. Impressive buy-to-let yields of around 9% have made these areas attractive to prospective buyers. With close proximity to the two main universities, a steady stream of wealthy international students look to the L7 postcode each year, guaranteeing a consistent and impressive return on investment.
Similarly, the L6 area encompasses many students around the Fairfield, Kensington and Tuebrook areas, but also includes Anfield and Everton. Of course, Liverpool and Everton football clubs are located close by, providing a major boost to the local economy and attracting ultra-passionate fans every week. High rental yields are helped by relatively less expensive properties compared to the national average.
The L4 postcode of Liverpool contains Anfield, Kirkdale and Walton, largely residential areas with various property types. House prices are relatively cheap, especially for terraced properties, again leading to attractive buy-to-let yields for investors. Kirkdale in particular has been subject to recent renovation projects, improving the quality of housing in the area and creating more jobs. Walton Road, a busy commercial centre with plenty of businesses, pubs and restaurants, is located nearby.
The L3 postcode of Liverpool includes the prominent and renovated Docklands area, commonly known as Albert Docks. After multi-million pound investment, it has become a major tourist attraction with many places of interest, bars and restaurants. Business investors are attracted to the site, looking to take advantage of the 4 million visitors who come every year. Vauxhall is another inner-city district of L3 which itself has been the beneficiary of investment for residential housing, flats and student accommodation.
The L10 postcode is made up of two main suburbs, Aintree and Fazakerley. They are more affluent areas of Liverpool, with more semi and detached properties to invest in. Although the potential buy-to-let yields aren’t as high as some other areas in the city, investors are still attracted here due to the fantastic transport links and local amenities. Aintree Racecourse is also located nearby, home to the famous Grand National every April.
If you’re looking for reasons to invest in this great city, check out our reasons for investing in Liverpool.
If you’re ready to get started, then take a look at our Liverpool investment opportunities.