Liverpool’s student population is continuing to surge, with numbers increasing from 50,000 in 2015 to 60,000 this year.
As such, demand for high-quality student property in the city is also on the rise. Boasting one of the largest universities in the UK, 60% of Liverpool’s students require accommodation.
Soaring student demand
New research from The Mistoria Group indicates that there has been an increase of 37% in demand for shared student properties in the city and surrounding regions during the last 18 months.
Good quality, HMO properties are in serious demand, as are purpose-built developments throughout the region.
Data from the report shows that Liverpool offers some of the greatest rental yields outside of London, around 5.15%. In the capital, returns are fairly low-4.86% in outer London and 4.71% in the centre.
Despite London being a popular buy-to-let hotspot, The Mistoria Group’s research reveals that the North West has been the best area for yields during the last five years.
Scouse success
Mr Mish Liyanage, Managing Director of The Mistoria Group, noted: ‘Liverpool is becoming a city for property investors with more building applications being filed every month. We have seen a steep rise in buy-to-let investors looking for refurbished property within 3 miles of the University – up 28% year on year.’[1]
‘Liverpool is a booming University City and it gives investors the opportunity to acquire high yielding property with excellent occupancy rates. Research shows that Liverpool is one of the UK’s top five largest rental markets outside of London. Many post graduate students are staying on in the city to work and this is driving demand for affordable, but high quality rental accommodation,’ he continued.[1]
Liverpool experiencing surge in student property demand
Redevelopment
Liyanage noted: ‘The city is undergoing a significant redevelopment, with more than £1bn of projects, including a 34-storey triple tower residential development. There are a total of 10 developments, which are set to transform the city centre.’[1]
‘As we mainly specialize in student lets Rent prices of our properties start around £85 per week per room including bills but on ensuits they can be high as £110 per week. For example, in L6, L7, L8 and L15 post codes are very popular with the students and Investors can acquire a high quality 3 bed HMO which will house for students, from £120K onwards. The return on investment is very attractive too, with 13% (8% cash rental and 5% capital growth),’ he concluded.[1]
[1] http://www.propertyreporter.co.uk/landlords/liverpool-sees-surge-in-demand-for-student-property.html