The north of England has developed a reputation for offering some of the most attractive options for investors that are keen to secure lasting returns when entering the UK housing market. Investment opportunities in Liverpool have become particularly lucrative for investors according to a new report.
The JLL report entitled ‘The New Housing Paradigm: Residential Forecasts – Northern England’, has shown that the coming years could see a dramatic uplift in investor activities in the north of the country.
Improving prospects for the north of England
Across the UK, investors in the housing market are benefiting from widespread growth in value at present, with the north of England in particular forecast to deliver between 3 and 4 per cent per annum uptick in prices during the next five years. It means this is an area that poses significant opportunities for investors right now, especially when compared with the 2.5 per cent growth forecast for the rest of the UK.
Cities including Manchester, Liverpool and Leeds have been highlighted by JLL as providing an array of attractive investment options in the coming months and years, with major cities in the north expected to outperform other areas of the country both in terms of higher sales prices and rental growth. Investment opportunities in Liverpool, Manchester and Leeds offer long-term value built in for those who take enter the market in the months ahead.
Moreover, as city living continues to gain increased traction among a growing demographic of the population, demand for both lettings and sales continues to rise. This comes against a backdrop of constrained housing supply in many urban centres, not just in the north, but across the whole of the country, and this too is acting as a driver of property price growth.
Increasing development opportunities are therefore expected in the short- to mid-term future, with the need for more homes ensuring that developers are now acting to ensure that years of under-activity are coming to an end.
What’s driving growth in the north-west?
In the past two years, following the UK’s decision to pursue Brexit and leave the EU, cities across the north-west of England have consistently outperformed their counterparts in other parts of the country in terms of economic performance and growth.
The Manchester and Merseyside economies have been at the heart of this enhanced economic activity, with thousands of jobs continuing to be created in these key economic hubs. This comes as the shift in focus for many businesses moves away from the saturated and expensive markets in the south to more affordable production and accommodation costs in the north of the country.
Indeed, the latest HM Treasury data from January this year points to Liverpool as being one of the resounding success stories of recent years, with a burgeoning export industry helping to push up the level of goods exported from the region by an additional £1 billion in 2016 to £27.8 billion.
Highlighting the positivity surrounding the Merseyside economy at present, chief secretary to the Treasury Liz Truss stated: “From machinery to medicine, Liverpool has a vibrant export industry with world-class products being sent to Europe, USA and afar.
“The impact of this is more jobs and a stronger economy for people in Merseyside.”
Why invest in Liverpool?
Liverpool is therefore leading the way in terms of enhanced economic prospects for the whole of the UK at present, with the JLL research predicting house price growth in the city will accordingly exceed the national average during the next five years.
A 4.5 per cent uplift in value is forecast this year for Liverpool’s property market, exceeding the 1 per cent prediction for the nation as a whole. This is a trend that then continues in the coming years, with above-average growth expected until 2022.
At the same time, business in Liverpool is booming and employment growth is predicted to achieve a rate of 0.4 per cent per annum, with the corresponding level of attraction for the city forecast to flourish. More jobs means more people, which in turn means the need for more homes. It is a positive development that will only serve to benefit those entering property investment opportunities in Liverpool.
JLL’s report stated: “Sales prices in the city centre increased during the course of 2017, up 5.1 per cent on the back of a lack of supply to meet the growing city centre demand. Looking forward, we forecast new development prices will rise strongly over the next five years in the resurgent city centre.”
This Liverpool investment news means that investors in the market will be faced with a growing array of options in the years to come, with more new developments coming to market to meet the city’s expanding needs.
Investment opportunities in Liverpool
At Experience Invest, we offer fully managed investment opportunities in Liverpool that provide investors with assured rental returns. In the coming years, the city now looks set to be one of the UK’s most popular and positive destinations for buyers looking for strong rental returns and capital growth potential.