Overseas buyers and large institutional investors are set to send residential property values and rents soaring, in Liverpool city centre over the next five years.
That’s according to Merseyside property experts who believe the current city centre market is seriously undervalued.
Property values based on £/sq fts in 10 leading UK cities. The City of London came out on top at a whopping £1,250 per sq ft.
The rest of London (£850) came next followed by Edinburgh (£320), Bristol (£300), Glasgow (£290), Leeds (£255), Manchester (£260) and Birmingham (£210).
At number nine was Liverpool at £205 per sq ft – just beating Newcastle at £200 per sq ft.
Liverpool Property Is Undervalued
Property investors, who do not have an insight on the local property market, have sometimes been reluctant to invest in Liverpool – such as there being an oversupply of buy to let city centre apartments, that prices were not growing and that the city was not safe , all of which are untrue.
Though the number of local buyers of city centre properties was falling, the number of national and overseas buyers was growing – combined, would outnumber local buyers by 2020.
Private Rented Sector (PRS) investors were now putting their cash into the city centre market.
A PRS investment is one made by a major institution such as a large pension fund.
The first two PRS schemes are under construction and are due for completion in 2015 and 2016 respectively with more planned in the pipeline.
The key to attracting investors is rental returns and an expected population boom in the city centre over the next five years, will push up demand inevitably increasing rental yields.
By 2019 local property experts are predicting that, 50,000 people will be living in Liverpool’s city centre. That will be a five-fold increase since 2000.
Average monthly rentals for a two-bed apartment are estimated to surpass £900 by 2020. Those who invest in current capital values combined with rental growth, will prove some of the best returns across the UK.
Jordan Yaffe, one of Mayweather Estates directors tells us “We strongly believe Liverpool to be a great opportunity to invest in. Property values, we also believe, are currently undervalued. As investors are beginning to look outside London ,locations such as Liverpool, Manchester & Birmingham will be firmly on their radar, as serious alternatives to the capital. We are handpicking a small number of schemes that will tick all the boxes for our investors.”
Want More Information?