Property investors sizing up potential assets in the UK this year will base their decision on a number of factors, but one of the most significant of all will be the investment’s potential to achieve capital growth.
Consistent and reliable expansion in the value of housing stock is one of the key attractions that has made UK property a popular asset among British and international investors for decades.
One city where house price trends have been particularly strong in recent years is Liverpool, a location with a unique charm and character that will always hold a strong draw for tenants on the private rental market.
As the latest data has shown, Liverpool has set itself apart as one of the strongest cities in the UK for property price growth.
Leading England in price growth
The latest UK Cities House Price Index from Hometrack revealed that Liverpool experienced year-on-year price growth of 4.9 per cent in June 2019, the fastest rate in England and second only to Edinburgh (5.1 per cent) across the UK as a whole.
Cardiff, a potential student property hotspot, was in third place, after witnessing an annual price increase of 4.7 per cent.
Significantly, despite the rapid pace of expansion in Liverpool, the city continued to have the lowest current average price (£124,100) of any of the 20 cities surveyed by Hometrack.
London, by comparison, had a current average price almost four times as high as Liverpool’s (£484,200) in June, despite experiencing zero capital growth in the past year.
The report noted that housing market dynamics are stronger in northern cities than in the south, with price inflation in the north being driven by the fact that sales are eroding supply at a quicker rate.
Over the past five years, average property values in Liverpool’s L1 postcode have risen by 14 per cent, according to Zoopla.
Mark Harris, chief executive of mortgage broker SPF Private Clients, told the Daily Mail that “thriving cities” like Liverpool are proving increasingly attractive to property buyers who have been priced out of the south.
“These cities have subsequently seen greater price growth recently, but because it is coming off a lower base, they are still relatively affordable,” he added.
Diverse investment options
The combination of affordability, reliable capital growth and scope for further increases in values makes Liverpool a hugely attractive option for investors.
Outside of these incentives, the city has another very powerful factor in its favour: the wide range of investment options and asset classes available, beyond mainstream residential housing.
It is home to a growing student property market, with locations like the Baltic Triangle and the Knowledge Quarter proving particularly attractive to people looking to further their education. Students from across Britain and overseas are also drawn to Liverpool’s well-established universities and distinctive sense of culture and character.
The city is also witnessing growth in the hotel investment market, with a recent update from the local council and enterprise partnership showing that £63 million was invested in hotels and serviced apartments in 2018. There were seven new property openings and two major refurbishments last year.
With steady capital growth in the residential market and plenty of alternative options available in sectors such as student housing and hotels, there is no doubt Liverpool is one of the most exciting destinations in the UK for property investment right now.
Access your guide to investing in Liverpool
Download your guide to investing in Liverpool and discover why now is the time invest for the best growth potential. Find out why and how the city is outperforming other core UK cities – including London – and find out which asset class is the best option for your property portfolio. Simply click here to access the Liverpool location guide.