LIVERPOOL PROPERTY GUIDE
2019 Celebrating 15 years in business
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Liverpool Property Guide 2019
The continuing strength of buy-to-let The UK buy-to-let market is flourishing thanks to increased tenant demand, rising house prices and climbing rents. The strength of the UK buy-to-let market
over the course of their investment.
is not a secret anymore. The number of
Rental income could also grow over
rented households in the UK currently
time as the competition for high quality
exceeds 5.7 million, and this figure is
accommodation becomes fiercer.
£33.4bn UK buy-to-let landlords earned £33.4bn in the 12 months from 5 April 2017 to 2018, up 4.3% year-on-year ludlowthompson, 2018
expected to grow to more than 7.2 million as soon as 2025. The total value of the
In order to keep up with population
buy-to-let sector now exceeds £1.29tr and
growth it is estimated that the UK needs
this will only continue to increase in the
approximately 250,000 new homes every
coming years.
year – far more than are actually being built at the moment. With this in mind it
Thanks to rising house prices in the
is crucial for developers to keep building
UK – which have seen an increase of
in high demand areas, and for investors to
over 240% in the last two decades,
offer high-quality rental accommodation
showing a sustained incline – buy-to-
to the ever growing pool of renters.
let is an attractive option for investors, and provides a two tier investment
Purchasing a buy-to-let in an area
opportunity: as well as the potential
pinpointed for significant growth, such as
for future capital appreciation on an
Liverpool, is an excellent option for both
investment property, investors can
short-term and long-term investment.
also benefit from regular rental income
11.4% UK rents are predicted to rise 11.4% in the next five years, with house prices set to grow by 13.1% over the same period CBRE, 2019
2.5 million There are 2.5 million more households in the private rented sector than there were in 2000 English Housing Survey, 2017 Liverpool waterfront
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UK rental growth: Rental growth is set to bounce back strongly (2018-2023)
3.5%
3%
2.5%
2%
13.7%
1.5%
1%
5-year compound growth
0.5%
0% 2018
2019
2020
2021
2022
2023 Liver Building
Source: Savills Research, Oxford Economics
One of the greatest incentives for buy-to-let
where many choose to rent as it suits their
landlords is rising rents which can provide
lifestyle. With this in mind it is no surprise
high monthly returns and an attractive
that industry experts believe that almost
annual NET yield. Ballooning rents are a
one quarter of the population will be
result of increased demand from tenants,
renting privately by 2021.
particularly young people who renting in ever-increasing numbers, with the total
This increased demand in rental
number of 25-35 year olds in the sector
accommodation means that asking rents
having doubled in the last decade.
are likely to rise in the coming years, especially as the deficit of homes in the UK
The population of the UK is anticipated to
becomes a growing problem. Taking all of
grow by more than 8 million by 2039 and
this into consideration, Savills anticipates
rising house prices mean that many people
13.7% rental growth between 2018-2023, an
are tied into long-term renting, particularly
ideal situation for buy-to-let landlords.
in the UK’s prime city rental markets
Georgian Quarter
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Liverpool Property Guide 2019
Why Liverpool? Liverpool is undergoing a remarkable renaissance. This historic city by the Irish Sea has become one of the UK’s top destinations for both businesses and people, and is home to a nationally significant economy and world famous culture. Liverpool has set a fantastic example to other British cities and the future of Merseyside is extremely bright.
Liverpool sits at the centre of a large city
the sort of sectors which will provide long
region which encompasses the local
term benefits to the city, the region and
authority districts of Halton, Knowsley,
the country as a whole – infrastructure,
Sefton, St Helens and Wirral, in addition
housing and business being the chief
to the city itself. It is a diverse region,
beneficiaries.
containing everything from the UNESCO World Heritage Site along Liverpool docks,
A great example of this is the enormous
to rolling countryside further inland, to
Liverpool ONE shopping centre. This
the world’s second largest concentration of
is a landmark shopping and leisure
windfarms just offshore.
destination covering 1.5 million sqft which has reoriented the whole city centre closer
The region as a whole has been the
to the waterfront. Liverpool ONE is the
site of a huge amount of investment,
largest open air shopping centre in the
both from the UK and around the
UK, and the busiest in the UK outside
world, and Liverpool is the main focus
of London. This £1bn development has
of that. Approximately £10bn worth of
broken retail records quarter by quarter
development is either already complete or
ever since it opened, recording an average
underway in the city, with another £40bn
annual footfall of over 27.5 million visitors
planned over the next few decades. This
each year.
investment is heavily concentrated on
Approximately £10bn worth of development is either already complete or underway in the city, with another £40bn planned over the next few decades.
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Another fantastic example of regeneration
Having prospered since being named the
in Liverpool is the extensive work being
2008 European Capital of Culture, the city
done to the city’s port. A £400m deep-water
hasn’t looked back. The investment of
container ship port called Liverpool2 was
£130m into the regeneration of Albert Dock
completed in November 2016 and is capable
– the most-visited free tourist attraction
of handling most of the biggest ships in
outside of London and the centrepiece of
the world. Allowing the world’s largest
Liverpool’s UNESCO World Heritage Site
container ships direct access to Northern
– was just the beginning of Liverpool’s
markets is to the benefit of Liverpool and
resurgence.
North West England
the region as a whole, and is made possible by major road and rail upgrades which are
Liverpool
smoothing the passage inland to improve efficiency. The development is set to expand further with new state of the art crane systems and storage warehouses which will allow the port to handle two 380 metre long ships simultaneously. This will make it one of Europe’s premier ports and puts Liverpool on the map.
27.5 million visitors each year
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Liverpool Property Guide 2019
A hub for business and culture Liverpool’s economy is thriving, which makes it an outstanding option for buy-to-let investors. With acknowledged strengths in sectors including automotive, business services, creative and digital, life sciences, demand for rental properties aimed at professionals is anticipated to remain strong – not to mention from the thousands of people who choose Liverpool thanks to its status as a European Capital of Culture. The city itself is at the centre of a regional
success of Liverpool’s young, dynamic
a perfect place to do business? Liverpool
population of 1.5 million people who drive
workforce can be assigned to the city’s
is a popular option for ‘northshoring’,
a regional economy worth approximately
universities which produce 30,000 highly
the practice whereby companies move
£30bn that engages with local business
trained and skilled graduates a year, of
their business away from London to take
in order to proactively encourage growth.
which a large proportion choose to stay in
advantage of more affordable business
Liverpool has a young and creative
the city. Thanks to sustained population
conditions. Given that the cost of living
population; with a third of the workforce
growth and a bright and hardworking
on Merseyside is almost 23% lower than
currently aged 16-19 and a fifth in their
workforce, the economy of Liverpool more
living in London, many people are also
20s, and these are the people who are
than doubled in size from 1998-2016.
moving to Liverpool to take advantage of
creating the businesses which are pushing economic growth onward.
the outstanding opportunities on offer. Is it really a surprise that a diverse range of multinational companies – such as
A further driver for Liverpool’s economic
Liverpool is the UK’s fastest growing city
Jaguar Land Rover, Airbus, Toyota, Bentley,
growth lies in its connectivity. Liverpool
centre, with the population increasing by
Fujitsu, Barclaycard and American Airlines
John Lennon Airport is located 7.5 miles
181% between 2002 and 2015. Part of the
among many others – see Liverpool as
south-east of Liverpool and is regarded as
Liverpool ONE
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Sefton Park
one of the UK’s top airports, serving more
evolving and improving. The city also
40,000 visitors for each home game, with
than five million passengers and over
stages a range of festivals and cultural
the club currently planning a new 50,000
60 destinations worldwide annually.
events on a regular basis which draw
capacity stadium near the docks.
In addition, hourly train services run to
thousands of people to Liverpool. As a result of the many positive advances
London in just two hours, while a journey to Birmingham takes under an hour and
However, for many, Liverpool will
and huge investment Liverpool is currently
a half.
always be regarded as a city of football,
experiencing, more people than ever
with both Liverpool Football Club and
before are moving to the city to be a part
Culturally, Liverpool has long been a
Everton Football Club drawing massive
of what is happening. The city’s skyline
powerhouse. The city is home to a raft of
attendances. Liverpool’s Anfield stadium
has evolved beyond recognition in recent
award-winning museums and galleries,
sees an average attendance in excess
years and there will be even greater
as well as live music venues and a diverse
of 54,000, while Everton’s neighbouring
opportunities available in the future.
food and drink scene, which is constantly
stadium consistently draws more than
2.1
181%
17.6%
The economy of Liverpool grew by a factor of 2.1 from 1998-2016
Liverpool is the UK’s fastest growing city centre, with the population increasing by 181% between 2002 and 2015
JLL anticipates that rents in Liverpool will rise by 17.6% by 2022
CityMetric, 2018
BBC, 2018
JLL, 2018
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Liverpool Property Guide 2019
Modern expertise Liverpool was historically known around the world as a shipping and mercantile centre, but the city has reinvented itself and is now home to dozens of modern industries which are pushing it onwards in the 21st century. The regional economy is currently worth almost £30bn – having grown by a factor of 2.1 from 1998-2016 – and has been one of the fastest growing areas in the UK for some time. This is thanks, in part, to the fantastic business being done in the city across four key sectors in particular.
Engineering & Logistics Advanced Engineering and Manufacturing is a key contributor to Liverpool’s regional economy, supporting almost 50,000 jobs across 3,000 businesses and directly contributing £3.2bn to the overall economy. Liverpool is well known for producing a quarter of a million cars annually, home to brands like Vauxhall, Toyota, Bentley and Jaguar Land Rover. Liverpool is also benefitting from £1bn of logistics investment, which is set to drive more business to the area as companies look to take advantage of Liverpool’s unparalleled logistics infrastructure, including two international airports in the region and a new deep-water container terminal.
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Business & Financial
Creative & Digital
Liverpool is one of the UK’s premier
Liverpool is one of the UK’s fastest growing
business and financial services centres,
digital and creative cities, drawing to it
and according to Invest Liverpool is
many bright and creative minds. Liverpool
the largest wealth management centre
is the most filmed city outside of London
outside of the capital.
and boasts UNESCO ‘city of music’ status.
The city is home to more than 50 large,
The city centre provides a fantastic
notable companies which have chosen to
environment for creative industries with its
locate offices in the city. Private companies
1 Gbps internet connections and world class
such as Marks & Spencer, Barclaycard,
data centres, as well as offering funding
Santander, American Airlines and Bosch
and business help through several Council
have a significant presence in the city.
schemes.
Medical & Life Sciences
More than 650 legal firms call Liverpool home, such as Hill Dickinson, DWF, Brabners, Weightmans, DLA, and Morecrofts; with Liverpool’s legal sector employing 10,000 people. The city is also the base for international wealth management giants like Pershing. The public sector is also well represented
Liverpool is growing fast and is becoming
in Liverpool, with HMRC having a big
nationally renowned in fields as varied
stake in the city, as well as many public
as research and development, clinical
sector contractors like Capita and Tata
trials and bio manufacturing. The city
Consultancy Services being located there.
is the home of the number one bio
In addition to all of that, the city’s retail
manufacturing cluster in Europe and is the
sector is enormous and employs more
top research institution in the world for
than 8,000 people.
tropical medicine.
And 2019 looks to be another fantastic
Merseyside has seen innovations in
year for business in Liverpool, with Lloyds
infection treatment, precision medicine,
Banking Group pledging to support firms
children’s health, big data and vetinary
in the North West with up to £1.3billion
science, among many others.
of lending during 2019 to continue the leading work being done there.
The Liverpool Innovation Park, the Baltic
Hundreds of medical companies are based
Triangle and Cotton Exchange are just three
in the Liverpool-Manchester corridor,
of the areas which are becoming high
making the region a hotbed of activity. The
quality clusters for digital and creative
new £429m Royal Liverpool Hospital only
business activity. It is no coincidence that
adds to this, as does Knowledge Quarter
the British Interactive Media Association
Liverpool which has already delivered £1bn
has its regional HQ in Liverpool, and that
worth of developments and has another
smaller cooperative ventures such as Kin
£1bn in the pipeline to create what it calls
and Creative Kitchen have found the city to
a “unique mixture of science, medicine and
be such an accommodating home.
culture”.
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Liverpool Property Guide 2019
Knight Knox Knight Knox is a market-leading property consultancy with a particular focus on city centre residential markets in many of the UK’s outstanding cities. We are the driving force behind every stage of the development, from the initial land acquisition, through the planning and development of the scheme, and onto the eventual sale and ongoing property management.
Our presence at every stage of the property lifecycle allows us to design our developments with the occupier in mind from the very beginning and ensures that we have a real stake in making every home perfect. Knight Knox is a unique property consultancy and our outstanding portfolio is second-to-none.
With departments which specialise in land acquisition, design, marketing, financing, lettings, property management and sales, we are one of the few companies which is involved at all stages of development.
“It feels good to deal with a company you can trust” Mr P. Nelson - Knight Knox Investor
How to invest in Liverpool
NATEX Liverpool Natex is a premium student development
The development occupies a prime
comprising of studio apartments and
location minutes from Liverpool city centre
double en-suite rooms arranged in a
and round the corner from Liverpool Lime
cluster format around shared lounge and
Street station. The city is home to some
kitchen facilities. In addition to well-sized,
of the world’s leading higher education
modern apartments, the development
institutions, including the University of
also includes communal facilities such
Liverpool and Liverpool John Moores,
as a gymnasium, games room, communal
which are both within walking distance.
lounges and dining areas, laundry rooms and a private courtyard.
Invest in a booming student market from £69,500 Please visit www.knightknox.com or call +44 (0)161 772 1370 for further information.
Figures correct at time of print (October 2019)
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90+
65+
ÂŁ1 BILLION+
Total number of UK projects launched
Number of completed and occupied developments
Total value of all UK projects launched
As featured in:
Development portfolio
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X1 Manchester Waters Manchester
Contact us Whether you are looking for a high-yielding investment property or would like to enquire about becoming part of our extensive Agents Network, please contact us to set up a meeting to further discuss your requirements and determine how Knight Knox can best help you. Get in touch Address: Knight Knox, Quay West at MediaCityUK, Trafford Wharf Road, Manchester M17 1HH Tel: +44 (0)161 772 1370 Fax: +44 (0)161 241 5360 Email: info@knightknox.com Find us online Website: www.knightknox.com
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The content contained within is correct at the time of publishing (March 2020). 03-2020 V3