A new report from The Mistoria Group, specialists in high yielding investment property in the North West, shows a surge of tenant demand across Liverpool up 19% year on year, with an average of 6.6 tenants now chasing every shared room of a new rental property compared with 5.5 in 2016.
With one of the largest universities in the UK and an increasing student population, combined with rising graduate job opportunities, Liverpool is experiencing a booming BTL market, with demand for high-end, quality rental accommodation outstripping supply.
Liverpool boasts a student population of around 60,000 and 60% of them require accommodation. There is high demand for new and renovated property for the sole purpose of the university students, many of which are looking for affordable, shared accommodation. According to The Mistoria Group, over the last 12 months, student rents in the city have risen by 23% and now sit at an average of £128 per week as at May 2017.
Mish Liyanage, Managing Director of The Mistoria Group comments: “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.
“Liverpool is booming. A multi-million pound investment in economic regeneration is transforming the city and over the last decade, the it has attracted more than £5 billion of investment in property, infrastructure and services. According to Knight Knox, these regeneration projects have seen Liverpool become home to some of Britain’s most ambitious residential, commercial and leisure developments, spearheaded by the widely successful Liverpool ONE project, the shopping and leisure destination, which has refocused the whole city centre towards the waterfront.
“There is no doubt that buy-to-let investment in Liverpool has gone from strength to strength, with landlords enjoying yields of over 10%. Many property investors are clamoring to snap up HMO properties in the city’s BTL hotspots, such as the L6, L7, L8 and L15 postcodes. With savings earning very little, many investors are recognising that BTL property can give them much better returns.
“Rental yields within one mile radius from the Universities/City are excellent. Our research shows that student house share rents start at around £85 per week per room, including bills. However, ensuites can be as high as £115 per week. Investors can acquire a high quality three bed,
fully-let HMO near a university, which will house students from £120,000 upwards. The return on investment is very attractive too, with an average of 13% per annum (8% cash rental and 5% capital growth). We have seen almost 32% increase in the sale of our arm chair HMO deals over the last 12 months compared to 2015-2016”
“Our Liverpool Lettings and Sales branch is located at Wavertree and is managed by the local property expert, Ms Tanya Jackson. The branch which completed 2 years now lets over 300 student rooms and has recorded a 95% occupancy rate across the student accommodation it manages, with the summer still to come. Mistoria Liverpool branch plans to expand the services it offer to residential and commercial sales over the next 12 months with the recruitment of highly experienced Sean Casey.”