Posts with tag: Liverpool

Landlords should look north for strongest buy-to-let profits

Published On: October 17, 2019 at 9:32 am

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strongest buy-to-let profits

Scotland and the North West have been highlighted as the most profitable areas for property investment in 2019/2020, according to TotallyMoney.

The results of the credit expert’s latest research reveal:

  • The UK buy-to-let market is currently doing well. Many of the best performing postcodes in the UK turn a 7% to 8% yield
  • The highest returns in the UK can be found in Liverpool’s L1 postcode (10% yield)
  • Two Scotland postcodes have made the top three and a total of nine Scottish areas feature in the top 25 of the best yields
  • All postcodes in the top 25 have property asking prices under the current UK national average of £232,710
  • St Albans’ AL5 postcode has the lowest yield in the UK, a poor 1.95%. This is closely followed by Ipswich’s IP13 at 1.96%

Despite the ongoing changes in landlord tax relief and an increase in landlord responsibilities, TotallyMoney’s research shows plenty of UK postcodes return healthy profits for property investors.

Top 25 UK buy-to-let postcodes

  • Liverpool’s L1 boasts a strong 10% profit margin, smashing the 3% yield many of the UK’s postcodes offer. Properties can be bought for an average pf £90,000 and can bring in a median rental value of £750
  • The North is also doing well, particularly in Falkirk and Glasgow. FK3 and G52 are seeing yields of 9.51% and 8.75% respectively
  • The 16 top postcodes are in the North West (predominantly Liverpool) and Scotland
RankPostcodePostcode TownProperties for RentMedian Rental ValueProperties for SaleMedian Asking PriceYield
1L1Liverpool187£750368£90,00010.00%
2FK3Falkirk30£49539£62,4509.51%
3G52Glasgow46£59566£82,0008.71%
4L11Liverpool55£65031£90,0008.67%
5TS1Cleveland65£42534£60,0008.50%
6KA1Kilmarnock68£45075£64,9958.31%
7L6Liverpool153£57559£85,0008.12%
8LE1Leicester176£667116£100,0008.00%
9LS2Leeds111£82532£125,0007.92%
10S1Sheffield219£75068£115,0007.83%
11CF43Cardiff36£42535£67,0007.61%
12TS3Cleveland60£47563£74,9757.60%
13L2Liverpool115£850106£135,0007.56%
14PA3Paisley42£42543£68,5007.45%
15L3Liverpool282£740360£119,9507.40%
16SR8Sunderland85£450143£73,7257.32%
17G51Glasgow74£59531£97,5007.32%
18NE8Gateshead148£57575£94,9507.27%
19AB11Aberdeen173£60045£99,9957.20%
20G67Glasgow57£45065£75,0007.20%
21G32Glasgow46£47576£79,9957.13%
22L4Liverpool136£47594£80,0007.13%
23G21Glasgow30£55031£92,9957.10%
24LA14Lancaster50£500128£85,0007.06%
25SR5Sunderland46£49540£84,9506.99%

Weak performing postcodes for investment property

  • AL5 in St Albans is at the very bottom for yields, at 1.95%. The average buying price for a property is £800,000, and asking rent is £1,300 per month
  • London’s W8 postcode (Kensington), provides a 2.05% return for landlords, even though average property prices are a hefty £1,962,500.
  • Other commuter spots in the bottom 10 include RG10 in Reading (2.26%), GU10 in Guilford (2.22%) and KT7 in Kingston upon Thames (2.20%).

TotallyMoney spokesperson James McCaffrey, comments on the findings: “Many existing and would-be landlords wonder if buy-to-let is still worth it. Our findings are another source to help property investors answer that question.

“The maps and data clearly show there are pockets of profit for landlord investment this year. And it seems that Scotland and the North are good places to start a buy-to-let property search.

“Landlords should always do their research before committing to a property purchase. Understanding current market trends is part of that. Making sure they’re financially prepared is another.

Liverpool is Setting an Example for other UK Cities

Published On: October 11, 2018 at 9:34 am

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Liverpool has just hit the headlines for leading the UK’s cities in terms of its house price growth. The Hometrack UK Cities House Price Index reported 7.5% inflation in Liverpool during the year to August 2018. For those working in the Liverpool property sector, the news comes as no surprise.

Jonathan Stephens, MD, Surrenden Invest, commented:”Liverpool has exceptionally strong credentials as a property investment destination. It has a booming city centre population, a thriving business community and a superb cultural offering. This combines to produce a high and sustained level of demand for decent, well-located rental homes, which in turn means that property investors can earn healthy yields, as well as enjoying the potential for impressive capital growth.”

“Liverpool is one of those rare cities that has it all. It’s a delightful blend of economic opportunities, cultural pursuits, a superb gastronomic scene, a lively sporting offering and a thriving property market. The city also enjoys property prices that are well below the average for the UK, which is another reason that it is such an exciting prospect for property investors.”

“This is definitely an exciting phase in Liverpool’s history. The city is one of the most investable destinations not just in the UK, but in the world. The resulting boom in population is generating a long-term, positive impact on the property market. I wouldn’t be surprised to see Liverpool leading the UK again in terms of its property price increases over the coming months.”

As part of the Liverpool-Manchester metropolitan area, the city was recently flagged up by IBM’s annual Global Location Trends report as being among the top ten cities in the world for foreign direct investment (FDI). The area pulled in the tenth highest number of FDI projects in 2017, according to the report, resulting in the creation of some 7,000 jobs.

Earlier this year, TripAdvisor also highlighted Liverpool as one of the best places in the world to visit. The city’s cultural offering was key to that decision. This year, it is offering a year-long programme of events, exhibitions, seasons and performances to mark the ten-year anniversary of Liverpool being crowned European Capital of Culture. One of the most impressive offerings is the Terracotta Warriors exhibition, which is drawing in visitors from around the UK and beyond.

 

 

Liverpool is Ideal for BTL Investors Looking for ‘Lucrative Long-Term Rental Returns’

Published On: October 5, 2018 at 9:00 am

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Liverpool has once again been highlighted as an ideal destination for buy-to-let landlords seeking solid rental returns, this time by an experienced property investment specialist.

The city continues to see high demand from tenants for private rented accommodation, thanks in part to ‘Knowledge Quarter’, which has seen a huge influx of students and young business professionals choosing to relocate to the city due to the new and innovative opportunities available.

Mark Burns, managing director of property investment firm Hopwood House, said: “Not only does the city’s beautiful waterfront setting and impressive skyline attract major international interest, the city was also awarded the title of one of the best places in the UK to invest, making it the perfect opportunity for buy-to-let property investment.”

Burns points out that with unparalleled earnings to house price ratio, properties in this high-spirited and fast-paced city cost on average 4.8 times more than the typical annual salary.

“Nominated as the annual European Capital of Culture in 2008, Liverpool possesses all the attractive qualities of larger UK cities at a fraction of the price,” he added.

Property prices in Liverpool are relatively affordable compared with other major UK cities, and with an average house price growth of 5.9% last year, Burns sees Liverpool as “the ideal location for buy-to-let property investors looking for lucrative long-term rental returns”.

He continued: “Liverpool offers some of the most profitable rental yield returns in the country, with three Liverpool postcodes ranking in the top 10.
“The L7 area of Liverpool, located just outside the busy and energetic city centre, offers unrivalled yields of up to 11.79%. Areas elsewhere in Liverpool can offer rental yields anywhere between 11.52% and 9.36%.”

Plans for the Northern Powerhouse scheme, designed to rival London and the South East as the main driver of economic growth in the country, by pooling the strengths of the cities and towns of the north as one cohesive unit, are also expected to support the housing market in Liverpool as well as boost the wider economy in the city.

Burns went on: “Liverpool is set to benefit from 10,000 new properties and two million square-feet of office space due to the redevelopment proposals set out by the city council.

“The new office space available is expected to attract a substantial number of young business professionals to the area while the new properties available are a perfect opportunity for investors looking to enjoy long term rental returns.

“Liverpool is most certainly one of the most beneficial and profitable places for property investment at the moment, especially in the buy-to-let sector. Cheap house prices and attractive yields allow investors to enjoy long term lucrative returns whilst the growing population of young professionals and the number of properties available on the market make it a straightforward investment with fewer risks than investing in other larger UK cities.

“The Northern Powerhouse initiative and the city’s extensive transport networks make it both refined and accessible for both tourists and locals.

“Liverpool is set to continue growing and thriving in years to come, making it an ideal investment opportunity for investors looking to expand their property portfolio.”

5 Reasons why Liverpool is Drawing in Investors from Around the World

Published On: October 27, 2017 at 8:00 am

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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.

  1. 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.

  1. Tourism potential

5 Reasons why Liverpool is Drawing in Investors from Around the World

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.

  1. 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%.

  1. 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.

  1. 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?

Liverpool Named the Top Buy-to-Let Spot for Rental Yields

Published On: June 12, 2017 at 9:46 am

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Liverpool has been named the top buy-to-let spot, delivering landlords average rental yields of 8%, once mortgage costs have been taken into account, found new research from Private Finance.

Liverpool Named the Top Buy-to-Let Spot for Rental Yields

Liverpool Named the Top Buy-to-Let Spot for Rental Yields

As house prices and mortgage costs have the greatest influence on rental yields, Liverpool takes the top spot as it has a combination of a low average price (£122,283) and high rent (£1,021 per month).

Nottingham came in second, with a rental yield of 5.6%, followed by Coventry at 5.4%, Greater Manchester at 4.3% and Portsmouth at 4.2%. Cardiff, Blackpool and Lincoln are next, with rental yields of 3.9% each. Bournemouth and Southampton complete the top ten, with rental yields of 3.8% and 3.7% respectively.

According to the study, which calculated rental yields in the top 50 UK towns and cities with the highest proportion of private rental housing stock, six of the top ten areas with the lowest house prices are also in the top ten list for best rental yields.

Within the top ten buy-to-let spots, average annual interest-only mortgage costs vary significantly, from £5,940 in Blackpool to £13,548 in Bournemouth.

The Managing Director of The Mistoria Group, Mish Liyanage, comments: “Faced with increased taxation and tougher mortgage lending criteria, it’s so important for landlords to ensure they invest in properties that will maximise rental income and minimise void periods.

“Student property gives good returns on investment, as it delivers high yields and full occupancy. There is huge demand for shared student accommodation near the four universities and, with a student population of around 60,000 and 60% of them requiring accommodation, Liverpool is great place to invest.”

He advises: “Increasingly, investors are looking for new and renovated property for the sole purpose of the university students, many of whom want to live in affordable, shared accommodation. Over the last 12 months, student rents in the city have risen by 23% and now sit at an average of £128 per month, as of May 2017.

“HMO [house in multiple occupation] student accommodation gives landlords much higher yields than a three-bed, single-bed property or a student pod. HMO properties can generate this significant increase in revenue because they are rented out to individuals on a room-by-room basis. HMOs often provide between four and ten rooms, rented to individual tenants. Rent will typically include the internet, general utility bills and Council Tax.”

Have you been tempted to invest in Liverpool?

Liverpool seeing surge in student demand

Published On: June 1, 2017 at 8:55 am

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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.

Liverpool seeing surge in student demand

Liverpool seeing surge in student demand

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