The divide between the North and the South has long been prevalent in the UK. For investors who are interested in getting involved with UK property, it can be tempting to look straight to London as the place to invest, but does the English capital still offer worthwhile investment prospects or is it time to look up North? Here’s a guide to the Liverpool and London property markets, and information on which city is best for investments.
Liverpool Property Investment
The city of Liverpool has progressed massively over the years. Once a city facing poverty and economic turmoil, Liverpool is now celebrated as one of the most dynamic cities in the UK, with a fantastic cultural scene, exciting educational and professional prospects, and renowned amenities and leisure attractions. One area where Liverpool triumphs over the majority of other UK cities is with its property market.
Northern cities like Liverpool and Manchester have recently made a name for themselves as property investment hotspots. Liverpool, in particular, stands out due to the impressive rental yields buy to let investors can expect within the city. The average rental yield in Liverpool stands at around 5%, whilst some property investment companies like RW Invest offer properties with yields as high as 8 and 9%.
The success of Liverpool property investment is largely due to the demand for high-quality property in the city. Thousands of students and young professionals are heading to Liverpool each year, seeking quality city centre accommodation that’s close to their university or workspace. Low prices for both investors and tenants are part of the reason why Liverpool is so appealing, with the cost to rent and buy in the city significantly cheaper than in London. Investors into Liverpool property can expect to pay on average £130,677, whilst rental costs are increasing by 2.65 % but still remain more affordable than in a lot of other UK cities.
London Property Investment
London was once considered the place to be for any business or investment venture, but things have changed on the capitals property front. With soaring property prices, now at an average of £671,412, investing in London property isn’t an easy task for those with a smaller budget. Rental prices are also decreasing in London whilst property costs continue to rise each year, resulting in a disappointing average rental yield of 3.7%.
While there are some areas of London that present more promising statistics, such as in up and coming areas like Earls Court and Croydon where rental yields are expected to grow by 2020, things aren’t looking good for those keen to invest in 2018. Demand for London property has dropped to 27% in 2018, whilst some of the most in-demand areas of London are those with less affluent populations. With more and more Londoners leaving the city and heading up North as of late, it’s likely that desirable tenants like wealthy young professionals are causing this demand for properties that offer investors a better return on investment.
All in all, more affordable property prices, higher demand and more promising rental yields all point towards Liverpool as the better choice for property investments in 2018.