INVESTING INTELLIGENTLY TOWARDS 2019/2020
CSIPROP INVESTMENT GUIDE
LIVERPOOL
Liverpool A major port city of the British Empire, Liverpool was one of the UK’s biggest cities for most of the 19th and 20th centuries. When the docks declined, the city experienced a massive exodus, bringing the population to an all-time low of 442,000 in 2001. Liverpool has seen a renaissance in the past 15 years, becoming one of the UK’s fastest-growing cities in terms of population (2008 - 2015), and economy (1998 - 2018). City living has gained a foothold in this city — house prices and rents are poised for growth over the next 5 years.
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Liverpool Key Economic Indicators Liverpool City Region
UK Liverpool is a city to watch for house price growth and rental yield. Ranked the second largest regional economy in the North, this city has been cited by some as the true Northern Powerhouse: data from the Centre for Cities (derived from the ONS) reveals that it ranks within the top 5 of 12 major cities to have doubled the size of its economy from 1998 - 2018 (and is the only Northern Powerhouse city to have done so).
66m 4.2% 3.3%
Population
1,544,400
Unemployment Rate
4.2%
ONS & Nomis ONS & Nomis
Average House Price Growth 5.3% Hometrack
That’s an average annual growth rate of 4.2%, growing almost as fast as London.
Research Report: Liverpool
The booming growth of Liverpool’s economy is thanks, in part, to the significant investments the city has experienced over the last 10 years, including the £5bn Liverpool Waters project that will see a facelift of the city’s waterfront. Liverpool
Economic Growth A survey on the UK’s 24 leading urban economics in 1Q2018 ranked the Liverpool City Region within the top four hotspots in the country for economic growth potential, echoing data by the Centre for Cities. Liverpool came in fourth nationally behind Edinburgh, Oxford and Cambridge.
London
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UK Core CIties: Economic Growth (1998 - 2016)
London Edinburgh Cardiff Liverpool Bristol
Research Report: Liverpool
Manchester Leeds Newcastle Glasgow Sheffield Birmingham Nottingham
Since 2008, Liverpool’s economy grew by a factor of approximately 2.1 — almost as fast as London and more than any major British city except London, Edinburgh or Cardiff. Source: Centre for Cities,ONS, CityMetric.com
Liverpool City Region Liverpool is home to 13,800 businesses, and is the economic, knowledge, transport and cultural centre of a wider City Region area of almost 2 million people, 70,000 businesses and 1 million jobs. Employment had increased faster than the national average by 12.4% (25,140 jobs) over the last decade. Research shows that from 2010 - 2015, Liverpool was among the few British cities that outpaced global cities like Paris and Tokyo in employment growth and was projected to grow faster than Berlin over the 2015-2020 period. The city has
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been recognised as one of the UK’s fastest-growing hubs for digital companies outside London. Under a devolution deal with Whitehall, Liverpool will receive £900m over 30 years on top of other investment injections including the aforementioned Liverpool Waters and Liverpool2 — one of the most advanced shipping terminals in northern Europe and one that will offer British businesses a competitive new route to international markets
KNOWLEDGE QUARTER
Education remains one of Liverpool’s biggest exports and job sources. With three universities, a teaching hospital, science park and more, education and the commercialisation of knowledge accounts for 15% of the goods and services produced in the city. The £2bn 450-acre Knowledge Quarter will catapult Liverpool’s economic progress, establishing the city as a world-class destination for science, innovation, education, technology and the creative and performing arts. The area straddles several universities including the world-renowned University of Liverpool and Liverpool John Moores University.
Sensor City is a global hub for the development of sensor technologies and rapid prototyping. Image Credit: Vanceva.com
A major development site of in the Quarter is Paddington Village, recognised as a key area of economic growth for the city and the wider regions. It is home to the Royal College of Physicians northern base, a world-leading proton beam cancer treatment centre, the Royal Liverpool Hospital, Sensor City and the Liverpool International College. Upwards of 10,000 jobs will be created in Paddington Village, driving demand for housing.
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Population on the Rise
Research Report: Liverpool
Population growth is one of the main forces behind the extensive regeneration experienced by the city. Liverpool’s renaissance is seeing stronger investments into property, ranking this northern city as one of the UK’s best performing property investment locations with average rental yields of 6.2%. During 2017 alone, average 2-bedroom flat rents rose by 2.8% while sales prices of property in the city centre increased by 5.1%. House prices in the city centre are predicted to grow by 19.3% while rents are tipped to increase by 17.6% from 2018 - 2022.
A study by TotallyMoney, which looked at 580,000 properties across England, Scotland and Wales, has found Liverpool to be one of the most profitable cities in the UK for landlords — far exceeding that of London. Liverpool has been earmarked as a property hotspot in 2019, poised to experience a population increase of 12% between now and 2041 as more talented young people are attracted to the city’s thriving service, healthcare and knowledge sectors.
Quick Facts: Liverpool . Student population alone is a staggering 70,000 . Named top buy-to-let spot in the UK (again) for 2018/19 . The Knowledge Quarter will see upwards of 10,000 jobs created . House prices will increase 19.3% from 2018 - 2022 . Rents are projected to grow 7.6% from 2018 - 2022
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19.30% 17.60%
Liverpool House Price & Rental Growth, 2018 - 2022 House Price Growth Forecast % p.a Rental Growth Forecast % p.a
*
Cumulative
4.50%
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3.50%
3.50% 3% 3%
3.50%
3.50%
3.50% 3.50%
3%
2
0
2018
2019
2020
2021
2022
2018-2022*
Population growth will continue to spur demand for housing in Liverpool, driving house price and rental growth over the next few years. Source: JLL
Research Report: Liverpool
House Price & Rental Growth Forecast % p.a
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Housing Renaissance The decline of the docks in the mid-1970s saw a drastic fall in Liverpool’s population, which bottomed out at 442,000 in 2001. The last 15 years, however, has seen a reversal in trends, with Liverpool’s population now approaching the 500,000 mark. Its city centre alone has now reached circa 50,000, while its student population is at a cool 70,000. Centre of Cities, using figures
from the ONS, has found Liverpool to have the fastest-growing city centre in the UK from 2002 - 2015, with a growth rate of 181%. This growth is due to the increased number of young people, including students: its city centre student population grew by 6,300 (208%)!.
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Words VIVIENNE PAL
Research VIRATA THAIVASIGAMONY VIVIENNE PAL IAN CHOONG
Design & Layout AHMAD MUNAWAR ABD RAHIM JANE TAN
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