As more people are choosing to divert their attention away from the south due to escalating prices and diminishing rental yields, Liverpool is emerging as the latest student property hotspot aiming to deliver lucrative investment opportunities across the city. Liverpool is right in the thick of the property boom as it has embarked on a prosperous period after a decade of heavy investment, interest and subsequent growth since the 2008 European Capital of Culture. Therefore, the city has secured itself as a major player in the Northern Powerhouse that is proving vital for savvy investors turning to the city to take advantage of its economic and cultural strengths.
Business and innovation has helped to fuel the city, causing a major spike in investment in student property. In terms of size, Liverpool still falls behind its neighbouring major cities like Manchester, although despite this, the student body is increasing exponentially due to its heightening appeal worldwide.
Liverpool has three main universities with two specialist higher education establishments. Over the past couple of years, the number of people who are studying has soared impressively contributing to a stronger level of demand for property. However, aside from the current student population in the city, Liverpool graduates are becoming increasingly encouraged to remain in the city after the completion of their studies, leading to a surge in graduate retention figures. Liverpool John Moores University has the highest graduate retention rate out of all educational institutions across the city at 34%.
RW Invest property experts based in Liverpool, have collated a 2018 student market report stating,
“These award-winning institutions are attracting a big student population; UK undergraduates and postgraduates are attracted to the likes of Liverpool’s innovative research and development programmes plus state of the art learning facilities.”
Liverpool is currently in a perpetual state of change and growth that makes it both an extremely attractive place for graduates to study and live, as well as a flourishing place to invest and regenerate. Regeneration has undoubtedly been one of the most influential catalysts in determining the city as a true student hotspot, and the primary driving force behind the city’s appeal to students across the globe.
The Knowledge Quarter (KQ Liverpool) Liverpool is one of the most significant developments aiming to bring together the city across multiple sites, including Liverpool Science Park and Liverpool Bio-Innovation Hub. Focussing on innovation, research and education, KQ Liverpool is home to some of the most powerful players in the industry. Liverpool One shopping centre, developed in 2008, is one of the most successful regeneration projects for attracting students to the city, and undeniably set the standard high for the redevelopment of the wider city region.
There are now 10,063 student homes across Liverpool, up from 9,821 in 2016, equating to 1 in every 22 properties in Liverpool. One of the most dominant areas for investing in student property is L1, covering much of the centre. Property prices have been climbing, indicating the mounting desire to live in the area. Between 2011 and 2014 the average property price was £85,000, although between 2014 and 2015 this increased by 41% to £120,000, which is performing incredibly well compared to other regional markets.
Ever increasing numbers of students and young professionals have led the city’s property market facing more demand than it can supply, therefore requiring new developments which adds to one of the biggest supporters on the growth of Liverpool’s incessant property boom.
Author: Katie
Katie is a finance specialist with one of the biggest firms in London. From savings to investments, there’s nothing she can’t advise on and she’s here to help spread the word and help you on your way to financial freedom.