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New research shows Liverpool to be a student property investment hotspot

New research shows Liverpool to be a student property investment hotspot

New research carried out by the Mistoria Group has shown a huge rise in demand in the rental sector in Liverpool, highlighting a great opportunity for buy-to-let investment as rents are set to soar.

The analysis has shown that demand for property has risen by 19% year on year across the city, with 6.6 tenants fighting for each individual room.

This research only goes to strengthen the argument to invest in the already booming buy-to-let market in the North-West. With the growth of the Northern market and the decline in the London Property market, many investors are now choosing to invest in key cities such as Manchester, Leeds and Sheffield.

Purpose-Built Student Accommodation (PBSA) represents an alternative to the traditional buy-to-let investment, offering high yields and reliable tenancy rates. Savills has reported that investment in student housing has increased by 17% this year, showing its popularity among investors, particularly those based in Asia who are particularly attracted to the model of investing in UK higher education which is a tangible and concrete concept for them. This has worked as a huge vote of confidence for the sector which has proven itself as a solid investment market.

Low property prices and high numbers of students looking to rent in the city positions Liverpool as being an excellent location for student property investment in particular. With a student population of 60,000, 60% of which require affordable accommodation, there is no doubt that it is an oversubscribed area in need of new properties.

Further research suggests that rents have increased for students by 23% in the last year, and are now at an average of £128 per week, only strengthening the case for those looking to invest in Liverpool; particularly in affordable shared accommodation, targeted at the student market due to the emphasis put on high yields as opposed to substantial capital appreciation.

Property Reporter has also analysed property prices in the immediate area surrounding the University and concluded that rental yields within a one mile radius of the University Campus were particularly attractive, with an average 13% return on investment per annum.

Liverpool itself has enjoyed a huge cash injection of over £5bn which has seen regeneration and advancement in local infrastructure, services, and property, only working to allure more students, graduates and young professionals to city centre living.

Managing Director of The Mistoria Group Mish Liyanage stresses this, ‘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.’ showing that occupancy rates are still climbing for landlords.

StudentPodShop has a number of investment opportunities based in Liverpool currently for sale at varying prices. With now being a better time than ever to put your money in Liverpool, enquire today to find the perfect addition to your property portfolio.