Liverpool seeing surge in student demand

The most recent analysis from The Mistoria Group has shown a significant rise in tenant demand across Liverpool.

Demand has increased by 19% year-on-year, with an average of 6.6 tenants looking for every shared room of a new rental abode.

Booming Buy-to-Let

Data from the report indicates that Liverpool has a booming buy-to-let market, with demand for high-end accommodation continuing to outstrip supply.

Currently, Liverpool boasts a student population of nearly 60,000, with 60% of these needing accommodation.

In addition, there is great demand for both new and renovated properties for the sole purpose of students- many of who are searching for affordable, shared properties.

The Mistoria Group suggests that over the last year, rents for students in the city have increased by 23%, to now sit at an average of £128 per week.

Surge

Mish Liyanage, Managing Director of The Mistoria Group, noted: ‘Our lettings office in Liverpool has been operating for two years and during this period, we have seen a surge in demand for rental property from student and professional tenants.  Liverpool is a vibrant city with a buoyant job market and unsurprisingly, many young people want to work and live here.’[1]

‘Liverpool is booming.  A multi-million pound investment in economic regeneration is transforming the city and over the last decade, the it has attracted more than £5 billion of investment in property, infrastructure and services.  According to Knight Knox, these regeneration projects have seen Liverpool become home to some of Britain’s most ambitious residential, commercial and leisure developments, spearheaded by the widely successful Liverpool ONE project, the shopping and leisure destination, which has refocused the whole city centre towards the waterfront,’ he continued.[1]

High Yields

Liyanage went on to note: ‘There is no doubt that buy-to-let investment in Liverpool has gone from strength to strength, with landlords enjoying yields of over 10%.  Many property investors are clamoring to snap up HMO properties in the city’s BTL hotspots, such as the L6, L7, L8 and L15 postcodes. With savings earning very little, many investors are recognising that BTL property can give them much better returns.’[1]

‘Rental yields within one mile radius from the Universities/City are excellent.  Our research shows that student house share rents start at around £85 per week per room, including bills.  However, ensuites can be as high as £115 per week. Investors can acquire a high quality three bed, fully-let HMO near a university, which will house students from £120,000 upwards. The return on investment is very attractive too, with an average of 13% per annum (8% cash rental and 5% capital growth). We have seen almost 32% increase in the sale of our arm chair HMO deals over the last 12 months compared to 2015-2016,’ he concluded.[1]

[1] http://www.propertyreporter.co.uk/landlords/booming-tenant-demand-outstripping-supply-in-liverpool.html