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Liverpool: Hotspot for Economic & Population Growth

A new survey on the UK’s 24 leading urban economies saw Liverpool rated as one of the top four hotspots in the UK for economic growth potential.

Liverpool’s economic growth rate, coupled with investments into the city’s development and infrastructure, is poised to create more jobs, further driving demand for housing and cementing its reputation as one the best-performing property investment locations for landlords.

The results of a survey on the UK’s 24 leading urban economies saw Liverpool rated as one of the top four hotspots in the UK for economic growth potential.

The study was executed by a global design and infrastructure consultancy known as Arcadis. To achieve the rankings, six key features of a prospering city were calculated and compared: workforce and skills, infrastructure, business environment, place, city brand and housing. Liverpool was ranked within the top four economic hotspots together with Edinburgh, Oxford, and Cambridge.

The report was welcomed by both City Region Metro Mayor Steve Rotheram and managing director of the Liverpool City Region LEP, Mark Basnett.

Mr Rotheram said: “This is an encouraging report but, in a sense, it tells what we already know. External validation is always useful and helps to signal to UK and international investors the huge opportunities that exist within the city and wider city region. Devolution gives us a huge opportunity to realise that potential by prioritising the areas identified in this report.”

The report revealed that Liverpool’s strengths were its brand, infrastructure, positive business environment and quality and affordability of housing supply — the latter has earned Liverpool a considerable number of titles as one of the UK’s best buy-to-let areas.

 

Not the First Time

A look at Liverpool’s economic history reveals that its position at the top of a list on economic growth is not some newfangled occurrence. In 2015, figures by the Office for National Statistics (ONS), revealed that Merseyside, a metropolitan county that comprises Liverpool among other cities, experienced an economic growth rate faster than London, Manchester and any other major British city.  Just last year, Liverpool was voted as ‘The UK’s Buy-To-Let Hotspot’ for property investment returns and capital growth. With this positive trend extending into 2018 along with major regeneration schemes, Liverpool and economic growth are set to be well-acquainted in the years to come.

Liverpool’s strengths were its brand, infrastructure, positive business environment and quality and affordability of housing supply.

 

 

Liverpool’s Knowledge Quarter: Catalyst of Economic & Student Population Growth

What will further catapult Liverpool’s economic progress is the Knowledge Quarter, a £2bn vision to establish  the city as one of the world’s leading districts for science, technology, innovation and education.

For this goal to be actualized, it is crucial for well-resourced and world-leading universities to take the lead due to their resources and conducive environment. What is usually forgotten is that labs and classrooms are the birthplace of pretty much all the latest technology. AI and deep learning, automation and predictive analytics have all, in some form, started in an educational institution and not a traditional software development environment. The Knowledge Quarter is a perfect example of the UK’s progress towards this major goal, marking its transition into the next digital revolution and cementing Liverpool’s position as one of UK’s core cities taking part in it.

With several universities already residing in Liverpool’s Knowledge Quarter, a growing student population is bound to follow — Liverpool is home to a whopping 67,000 students!

Worth noting is the rising demand for proper accommodation  in the undersupplied student property market. Found below are figures that illustrate the dire shortage of purpose-built student accommodation (PBSA) in Liverpool as of late 2017:


Student Population: 67,000

Amount of Housing Available Through University: 4,500
Amount of Total Student Housing Available: 17,857
Potential Yields: Approx. 8% per annum

 

This shortage, a burgeoning student population and the relevance of the Knowledge Quarter as a one-stop education and technology centre, make PBSA in Liverpool the ideal investment.

Natex, one of the latest and most iconic PBSA developments to date, offers investors 9% returns, assured for five years. The 566-unit student residential scheme is approximately a 5-minute walk from two of the UK’s top universities: University of Liverpool and Liverpool John Moores University — it boasts all the facilities a student would ever need (and more!).

Natex is located within 5 minutes walk of 2 of Liverpool’s top universities and is in close proximity to some of the city’s top hotspots. Image by Mount Property Group

 

Opportunities for investment are also found in the residential property sector as high house rental values have given Liverpool’s city centre some of the highest rental yields in the UK. According to latest research, Liverpool and Nottingham were the best performing property investment locations for landlords with average nett rental yields of 6.2%, no doubt greatly credited to the education sector. With Paddington Village, a massive regeneration scheme within the Knowledge Quarter, poised to create up to 10,000 jobs and fuel demand for housing, we see this trend continuing into the future.  

With Liverpool’s Knowledge Quarter and education centres in mind, it would be a good idea to dip your toes into the pool of Liverpool’s looming success as soon as possible! 

Feel free to contact the team at CSI Prop for more information about how to get involved with Natex and how to build an impressive property portfolio.

By Nimue Wafiya


Sources:

http://lbndaily.co.uk/liverpool-one-top-four-hotspots-growth-potential-new-report-says/

http://www.finsmes.com/2018/03/new-report-reveals-liverpool-is-one-of-the-top-hotspots-for-growth.html

https://www.timeshighereducation.com/blog/uk-cannot-compete-digital-age-without-top-universities

http://www.primesite-developments.com/5-best-student-towns-invest/

www.movecommercial.com/12439-2/

https://www.propertywire.com/news/uk/liverpool-nottingham-top-buy-let-investment-rankings-uk/

www.csiprop.com/uk-property-outlook-2018/

www.resolutionfoundation.org/media/press-releases/merseyside-grew-fastest-in-a-strong-year-for-britains-major-city-economies/

www.csiprop.com/liverpools-knowledge-quarter-world-class-innovation-district/

www.csiprop.com/properties/natex/


CSI Prop proudly promotes international investment property with high yields at low risk. Our portfolio comprises residential and purpose-built student property in cities across the United Kingdom (London, Luton, Manchester, Liverpool, Newcastle, York, Glasgow, Scotland; Sheffield, etc); Australia (Melbourne, Perth, Brisbane) and Thailand (Bangkok). Our projects are concentrated in high-growth areas with great educational, infrastructural and job growth potentials. We aspire to make a difference in the lives of our clients by helping them achieve their investment goals through strong market research backed by third party experts and due diligence. 

Disclaimer: CSI Prop does not provide tax & legal advice and accepts no liability. Readers are encouraged to consult a qualified tax or legal advisor for a thorough review.

Need advice or clarification? Call us for more information and/or to find out about our projects! Hotline: 03-2162 2260

 

 

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