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Why Is Liverpool The Place To Invest In Student Property?

Student property is the most powerful component of an already robust and booming UK property market. The country’s buy to let market is in continually rude health with growth outside of London being notable for its rapid pace and prosperity.

Even in the face of the uncertainty surrounding Brexit and the UK’s future trade and relations with the European Union, it is the country’s student accommodation market that defies all expectations. It remains the safest, most secure and profitable venture for those looking for great returns on their investment.

It is Liverpool that outperforms the rest of the country by some measure in the student buy to let property market. The North West city, one of the key components of the Northern Powerhouse, provides investors with the best rental yields the country can provide. Three of the top ten most profitable postcodes for buy to let student accommodation investors are found in Liverpool.

L7, a postcode that constitutes Edge Hill, Fairfield, Kensington and parts of the city centre, is the top student rental yield hotspot in the country. Offering returns at an incredible average of 11.79%, the area is a haven for students both domestic and overseas. The average entry cost for investors stands at £118,225; a figure well below the national average property asking price.

Similarly, low prices are found in the L6 postcode, which ranks as the second best rental yield postcode in the UK. The area, comprised of high density residential areas such as Anfield, Everton, Fairfield, Kensington, Tuebrook and some of the city centre, offers investors an average rental yield of 11.59%. That comes with an even lower average entry cost of £108,940.

Finally, the L1 postcode is the UK’s seventh best performing student rental yield area. The heart of the city centre has become one of the go-to places in the country, and it has become a student property hotspot in a short space of time. For an average starting cost of £122,152, still very much below the national average, investors can expect returns at an average of 9.36%.

These areas have benefited from years of regeneration and investment, with ongoing projects taking place across Liverpool due to increase the viability and attractiveness of the area even further. L6 will benefit from the ongoing £260 million Anfield Regeneration Project, while the city centre and its surrounding areas are undergoing one of the most ambitious and expensive regeneration projects in the country with Liverpool Waters.

Investors in Liverpool’s student property market can only expect further growth and higher returns on their outlay. As the city continues to expand economically, buy to let investors can expect rents to increase in accordance. While property prices will also increase, the relative cost to investing in cities like London, Manchester and Edinburgh is still much lower. Investors can still expect high yields for many years even if property prices were to rise.

The numbers are there, but why is the city of Liverpool itself such a high-ranking hotspot for student property investment? Leading property investment firms such as RW Invest find that investors have to cater to the huge demand from students for high end, luxury accommodation that not only offers the latest conveniences and amenities but the chance to live close to the city centre and their higher education institute.

Liverpool enrols upward of 70,000 students across its three major universities, including many overseas students from China and other Far East nations. The city has one of the highest student populations in the UK, and the consistently good performance of its universities, along with the continued growth and prosperity of the city centre and its outlying suburbs and areas, mean that Liverpool is an increasingly attractive proposition to investors, as well as domestic and overseas students.