“Liverpool is still setting property investors’ pulses racing” says Surrenden Invest’s Jonathan Stephens
- Liverpool still top of the props when it comes to investment
- Waterfront area proving popular with investors and tenants alike
- Stamp duty increase hasn’t dented buyers’ enthusiasm for Liverpool property
Liverpool’s property market has received a great deal of media attention in recent years. From being flagged up as the UK’s top property investment hotspot to the massive regeneration plans centering on the city’s stunning waterfront location, the city has drawn attention for its potential, its yields and its capital growth.
So is Liverpool ready to retire from the property scene and make way for the UK’s next property hotspot? Far from it, according to Jonathan Stephens, Managing Director of property consultancy Surrenden Invest. We caught up with Jonathan to find out why it is that Liverpool can still set property investors’ pulses racing.
Is Liverpool still the place to be so far as UK property investment is concerned?
Yes, absolutely! The North West of England, and Liverpool in particular, is enjoying a period of substantial growth when it comes to city economies. The Northern Powerhouse initiative has focused attention on the North West’s cities and Liverpool is one of those at the forefront of the boom. We’re seeing starts ups, creatives and tech companies flourish, alongside more established services industries, giving a really vibrant and exciting feel to what’s going on here in terms of economic potential.
And of course booming businesses go hand in hand with a buoyant property market. There’s a lot of demand from professional tenants for high end rental accommodation. They’re seeking a blend of great location and added extras like concierge services. With the UK’s private rented sector continuing to expand, I don’t believe we’re going to see demand from this kind of tenant drop off any time soon, so in cities like Liverpool investment in rental property definitely still makes sense.
Are there any particular areas of Liverpool that property investors should consider?
The UNESCO World Heritage waterfront area is the place to look. There’s a lot of money being poured into development work there right now, which will give new residents access to some of the city’s most celebrated features, right on their doorstep. It’s a really elegant district with real charm and provides easy access to the offices, retail establishments, eateries and other amenities of the city centre.
Strand Plaza is a great example. The beautiful apartments benefit from stunning views over the water, as well as premium features like a 24-hour concierge. Residents will be able to benefit from superb local amenities, with the whole of the city centre at their disposal.
After the stamp duty increase, is buy-to-let still an attractive option for investors?
The buy-to-let sector was certainly braced for the impact that the 3% increase to stamp duty on additional properties would have and we saw a huge rush in the first quarter of this year as buyers raced to complete their purchases before the rate increase in April. However, we’ve certainly not seen interest in buy-to-let investment vanish since then, at least not here at Surrenden Invest. Buy-to-let in areas with strong yields like Liverpool can still be a profitable venture and investors like the relative certainly that comes from investing in bricks and mortar.
Is the Liverpool market still undervalued?
Definitely. There were various predictions just over a year ago about how investors were going to send Liverpool property prices soaring because the market was so undervalued, but the reality is that we’ve seen a slow and steady increase rather than the promised spike in values. Zoopla’s latest data shows an annual increase in house values of 0.63%. That means that Liverpool’s market still has excellent potential for growth when it comes to prices. It’s still undervalued in my opinion, which is an exciting opportunity for investors in buy-to-let properties.
What are your predictions for Liverpool’s property market over the coming years?
I think we’re going to see the continuing of the current trends, with new homes being built in sought after areas accompanied by strong levels of demand from professional tenants. Liverpool’s city centre population is growing for the first time in 80 years and the surge in interest in city centre homes has been marked. Prices should continue to rise at a sensible pace, meaning investors can look forward to the potential for capital gains as part of their investment strategy.
Finally, what is it about Liverpool that makes the city so special?
For me, it’s the city’s combination of its shipping and manufacturing past with its more recent status as a centre for culture and creativity. There’s so much here to discover. Liverpool is not only a great place to work but also a lovely city for enjoying during your leisure time. That’s why so many people in recent years have headed back to the city centre to live and we’ve seen such a shift in demographic patterns. Liverpool is one of the UK’s most interesting and vibrant cities. Whether you’re looking to live here or invest in a property, it’s a wonderful place.
For further details, visit www.surrendeninvest.com, email info@surrendeninvest.com or call 0203 3726 499.