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You may be assessing the benefits and drawbacks of Liverpool and London if you're thinking about investing in a buy-to-let property or buy to let properties. There's no denying that both cities provide prospects for buy to let property investment, but which is the better option for you given the interest and enthusiasm around their respective property markets?
We'll examine the important elements that could influence your choice in this article, such as rental yields, capital growth, the cost of purchasing a buy-to-let property or properties, rent hikes, the local economy and employment market, and transportation options. We'll also look at the reasons why Liverpool would be a better choice for some investors wanting to acquire UK buy to let properties or buy to let investment properties.
You will have all the knowledge necessary to decide where to invest in buy-to-let properties UK by the time you reach the conclusion of this article.
Where are the Highest Rental Yields?
If you're interested in buying a buy-to-let property or investment properties (which, let's face it, who isn't?), you'll want to consider where you can achieve the highest rental yields. A high rental yield means that you'll receive a high rental income compared to the low purchase price of the property, which is key to achieving a positive cashflow each month - a crucial rule of successful property investing.
So, where can you find the highest rental yields? According to Totally Money's Buy To Let article, Liverpool has the highest rental yields of all major UK cities. In fact, gross yields in Liverpool can reach up to an impressive 10%, while investors in London can expect around 4% on average.
If you're looking to invest in a buy-to-let property UK, it's worth considering Liverpool as a top choice due to its high rental yields.
Where is Rent Increasing the Most?
If you're looking to invest in a buy-to-let property or a couple of buy-to-let properties UK, you'll definitely want to consider where rent is increasing the most. Sure, it's important to keep an eye on property price increases, but don't forget that rising rental prices can also make investing in a buy-to-let property UK very lucrative.
Well, I've got some good news for you: Liverpool is currently experiencing a huge demand for rental properties, with a 19.4% increase in rental prices in just one year! Wow, that's pretty impressive if you ask me. This increase is due, in part, to the influx of young professionals moving to the city in search of job opportunities in industries such as tech and finance, as well as a vibrant nightlife, green spaces, and excellent shopping facilities.
And here's the thing: the competition for renters to find a good rental property in Liverpool is at an all-time high, with fewer houses on the market than ever. This means that as soon as your rental property hits the market, it is rented almost straight away.
In contrast, London's annual rate of rental growth is lagging at a 15.8% rise. So, if you're considering investing in a buy-to-let property or investment properties, Liverpool might be worth considering for its high demand and rising rental prices.
Where is the Highest Capital Appreciation?
If you're looking to invest in a buy-to-let property UK, you'll want to consider where you can achieve the highest capital appreciation - the increase in the value of your property over time. According to the latest capital appreciation league table, Liverpool topped the list for the highest price growth in the entire UK last year. With a rise of 10.3%, Liverpool surpassed London, which only saw a 3.2% rise and came in 19th place.
So, what makes Liverpool such a great choice for capital appreciation? The city is currently undergoing widespread regeneration, which has created numerous employment opportunities and a growing economy. This, combined with the city's three universities and high demand for accommodation due to thousands of students, makes Liverpool an attractive place to live and invest in a buy-to-let property. If you're considering buying a buy-to-let property or investment properties, Liverpool might be worth considering for its potential for high capital appreciation.
Where are the Cheapest Buy-to-Lets?
If you're looking to invest in a buy-to-let property UK, you'll want to consider where you can find the cheapest properties. Liverpool is a top choice for affordable buy-to-lets, as properties in the city tend to cost less than in other investment hotspots in the UK.
According to data from Rightmove, terraced properties in London sold for an average price of £798,849 last year. In Liverpool, terraced properties sold for an average price of just £143,407 - that's a whopping 82% saving! If you're considering buying a buy-to-let property, Liverpool offers some of the cheapest options in the UK.
As an investor, a lower cost of entry means that you can buy more houses faster and potentially see a greater return on your investment. Would you rather have one house going up in value or multiple houses going up in value? If you're looking to build a portfolio or just want to start with something more affordable, Liverpool might be the perfect place to invest in buy-to-let investment properties.
Which City has the Fastest Growing Economy?
If you're thinking about buying a buy-to-let property in the UK, you should think about the city with the fastest-growing economy - look no further than Liverpool! It is one of the UK's major cities and is primed for expansion because of its strong economy, abundant resources and growing population.
Its economy is expanding quickly and has seen significant changes recently. Liverpool's business growth has increased by 3.3% compared to London's average of 1.3%.
Liverpool is a city that epitomises culture. It has some of the greatest shopping in the country, a stunning waterfront promenade, a wide range of entertainment options and distinctive historical monuments. Due to all of these elements, buying a buy-to-let property in Liverpool is a wise investment decision.
Why Liverpool's Transport Links Could Make It a Better Choice for Buy-to-Let Investors
Transport possibilities are a key factor to take into account when purchasing a buy to let. And Liverpool might even be a better option than London in terms of transit! London seems like the obvious pick, but hear me out...
First off, the M62 highway makes it incredibly simple to travel to Liverpool. It's practically a direct shot from anywhere in the UK. And let's not forget about the city's own international John Lennon airport, which is less congested and cheaper than some of the airports in London.
Transport in London isn't the best, let's face it. Both the public transportation system and the highways are frequently busy. Additionally, it's tucked away in the southeast of England, which isn't ideal. This makes travelling there from other regions of the country more challenging.
Cost is still another factor to think about. In general, Liverpool's public transportation is less expensive than that of London, making it more accessible to a larger spectrum of individuals. And that could be a major concern if you intend to invest in a buy to let. After all, you are more likely to have a consistent stream of tenants if more individuals can afford to live in your property.
So, Liverpool has a lot going for it in terms of transportation alternatives. It's close by, has an international airport of its own, and has more reasonably priced public transit. Liverpool might be a better option if you're considering a buy to let in the UK.
Why Liverpool is a Top Choice for Buy-to-Let Properties
In conclusion, there are many reasons why Liverpool is a better choice for buy-to-let properties than London.
First of all, Liverpool has higher rental yields, higher capital appreciation, cheaper buy-to-lets, and a faster-growing economy. Additionally, the city has higher rental income appreciation.
London's high property prices and crowded, expensive public transport system make it less attractive for property investing. In contrast, Liverpool has strong, affordable and accessible transportation options.
So, if you're considering buying a buy-to-let property, Liverpool's growing demand for rental properties and strong economy might just sway it for you over London.
Investing in a buy-to-let property in Liverpool is a great way to build wealth through property investing and secure your financial future. For more detailed insights on this topic, check out how Liverpool's property market offers unique investment opportunities.
Hi, it's Pat Harper - Director of TPG
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