Liverpool is proving itself to be one of the top locations to invest in property in the UK, attracting investors from around the world. Jonathan Stephens, the Managing Director of Surrenden Invest, explains why…
“Liverpool is one of the UK’s most enticing cities from a cultural, architectural and historical perspective. It’s also drawing in investors from around the world, thanks to its dynamic business and property sectors. The rush to invest in Liverpool doesn’t look ready to abate any time soon. Here are five reasons why,” he says.
- Extensive regeneration
Liverpool’s skyline has been awash with cranes for years, as the city pours money into developing ever bigger and better attractions. These range from stunning new tourist attractions to ultra-contemporary commercial and residential properties.
One of the most exciting current projects is the Ten Streets regeneration, which is part of a 15-20-year strategic overhaul, focusing on a new creativity district that will bring with it lasting and long-term benefits to the city as a whole. One thing that Liverpool certainly doesn’t shy away from is long-term planning.
- Tourism potential
5 Reasons why Liverpool is Drawing in Investors from Around the World
Liverpool’s tourism sector is worth some £3.8 billion. The city is one of the most visited places in the UK, attracting more than 54m visitors each year. Just under 50,000 jobs in the city are supported by the tourism sector.
Liverpool’s tourist attractions are extremely wide-ranging. The Beatles Story and Cavern Club are must-visits for music fans, while the bustling Albert Dock leisure complex and UNESCO World Heritage waterfront also attract hordes of visitors.
All of this is backed by a dozen Michelin starred restaurants and enough other excellent dining options to satisfy even the most demanding gourmand.
- Housing undersupply
From April 2009 to March 2016, Liverpool built homes at an average rate of 713 per year. This was against a Home Builder Federation (HBF) estimate that the city needs to build 3,000 homes a year to keep up with demand. This mismatch between supply and demand has made for an interesting investment opportunity.
Demand for housing is growing, with Liverpool’s population rising from 435,500 in 2001 to 466,400 in 2011, according to Census data – an increase of 5.5% in a single decade. This has pushed up both house and rent prices in the city, as well as the wider region. Rents increased by an average of 4.4% across the North West in 2016. Longer-term, it is house price growth that will impress potential investors – property values rose by an average of 22.7% over the last five years, with apartments growing at an even faster rate of 25.2%.
- Youthful population
Liverpool is attracting a range of young talent, with professionals drawn to the city thanks to its economic potential. The number of those aged 22-29 in the city centre increased fourfold in the ten years to 2011. This has served to create a dynamic, enthusiastic workforce that is well positioned to provide Liverpool with a bright economic future.
Businesses are working to ensure that they harness the power of this youthful population. Santander’s first business incubator was set up in Liverpool. The city was also the location of Launch22’s first incubator outside of London. When it comes to future-proofing its business environment and economy, Liverpool is light-years ahead of many UK cities.
- Economic strength
Liverpool isn’t just a promising location for UK business and property investors – it’s one of the most appealing cities in the UK for multinational companies. Its mix of business sectors and income streams has allowed the city to build up strong economic credentials.
Asif Hamid, the Interim Chair of the Liverpool City Region Local Enterprise Partnership, sums it up well: “Liverpool City Region has recorded a strong economic performance over recent years, and these figures clearly underline the progress being made to deliver sustainable economic growth across the city region. This is an attractive location for businesses to invest and they are doing so in significant numbers.”
Liverpool was ranked joint second in the top ten mid-sized European cities of the future for 2016/17 by Financial Times company fDi Magazine. Its connectivity and business friendliness were noted as being among the city’s best credentials.
With such fantastic reasons to invest in Liverpool, could a move to the North West property market be on the cards?