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Insight & Opinion

Rising visitor numbers support Liverpool’s thriving economy

Author: Staff

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One of the many factors buy-to-let property investors take into account when searching for their next investment location is the local economy. Economic success means rising employment, higher levels of disposable income and stronger demand for rental property.

Liverpool is one UK location where positive trends in the economy – partly driven by the rising number of people visiting the city – paint an encouraging picture for investors.

A £4.5bn visitor economy

Liverpool offers cultural highlights and visitor attractions that hold powerful appeal for tourists, while the city’s growing business community offers a strong reason for corporate travellers to head there.

According to recent figures from the Liverpool City Region Local Enterprise Partnership (LEP), the visitor economy is now worth more than £4.5 billion. There were more than 64 million visitors in 2017, a 2.7 per cent increase from the previous year.

In an encouraging trend for the local hospitality industry, there was a 2.2 per cent rise in overnight stays, with Liverpool holding its place as the fifth most visited destination in the UK for overseas travellers.

Crucially for the local economy, the city region now supports more than 53,500 jobs, with employment rising by 3.5 per cent year on year.

In the city of Liverpool alone – not including surrounding areas – the recent increase in visitor numbers has delivered a 5.6 per cent boost in economic impact, to some £3.02 billion.

Between 2009 and 2017, the value of the visitor economy to the city region rose by 66 per cent, soaring from £2.73 billion to £4.53 billion. Property investments like Experience Invest’s Epic Hotel & Residence offer investors a way to capitalise of this demand and achieve an assured 10-year 10% NET p.a. rental return.

Peter Sandman, head of visitor economy at the LEP, said there has been healthy growth in visitor numbers in the ten years since Liverpool held the position of European Capital of Culture.

He added: “It is particularly encouraging to see our overseas visitors staying longer, as well as the number of jobs supported by the sector continuing to grow – which covers a wide range of employment options across accommodation, food and drink, recreation and retail.”

A positive environment for investment

These figures from the LEP followed an earlier, similarly positive report from CityMetric, which showed that Liverpool’s economy grew by a factor of 2.1 between 1998 and 2016. This rate of growth was faster than that recorded in any other major British city except London, Edinburgh or Cardiff.

Analysis of data from the Centre for Cities showed that Liverpool has experienced an average annual growth rate of 4.2 per cent since 1998.

This is certainly encouraging news for property investors, not least because the success of the city’s economy and local businesses means higher employment, and therefore more workers in need of housing within travelling distance of their workplace.

There are many other factors that make Liverpool a highly attractive destination for property investment, such as the expanding student population, which helps to fuel demand for student accommodation, a highly lucrative asset class.

The city also offers relatively low property prices, boosting affordability for buyers and providing clear scope for capital growth.

Investors keen to make the most of this potential can contact Experience Invest today to register their interest in developments such as Infinity Waters and Aura Student Liverpool.

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