Merseyside

One of the most in demand locations in the UK

Merseyside

One of the most in demand locations in the UK

Overview

In recent years, Merseyside has cemented its reputation as one of the most rewarding property investment destinations in the UK.

The natural focus for investors has, of course, been Liverpool, which has attracted huge sums of investment and seen its population and employment rates rise sharply. Both factors are helping to drive up rental demand and to raise both rental and capital values.

However, it’s important to note that the wider region contains other notable hotspots, such as Wirral just across the river, and the fast-regenerating docklands, which lie a short distance along the coast.

Each of these local markets has distinct merits; each stands as an attractive investment destination in its own right. Here, we can only provide a brief summary but it’s important to recognise that there are exciting opportunities right across the Liverpool City Region.

Merseyside at a Glance

01 Location:

North West England

02 Population:

491,500 (city)
1.5m (City Region)
4m (metropolitan area)

03 Population growth target:

+68,000 by 2040

04 Workforce:

650,000

05 Education:

4 universities with 30,000 graduates per annum
279,000 educated to degree level or higher

06 Economy:

£28.3 billion (city region)

07 Growth target:

+£22 billion by 2040

08 Business growth:

+20,000 by 2040

09 Business population:

43,500

Gallery

The City Region

Liverpool City Region has achieved faster economic growth than almost every other Combined Authority area in England, and it continues to expand. The City Region economy is worth around £28.3 billion and the figure is growing every year.

Inward Investment

Importantly, a number of major investment projects are set to accelerate the pace of change. Over £30 billion of development work is already under way, and a further £4.5 billion has been ring-fenced for new commercial and infrastructure projects.

Another huge cash injection is coming from the Liverpool Waters development, which is expected to add more £5.5 billion to the local economy and support thousands of new jobs.

A third is the metropolitan mayor’s “Plan for Prosperity”, which aims to create 44,000 new jobs in the city and a further 14,000 around the proposed new Freeport. Mayor Steve Rotheram said it would build on Liverpool’s strengths in low carbon industries, medicine, material science and applied artificial intelligence, and could add an estimated £19.7bn to the economy.

Growth Targets

The city is aiming for a £50 billion economy by 2040, and economic planners are forecasting employment growth of at least 100,000 over the same period. This will coincide with an expected population growth of +68,000 across the metropolitan area, and the creation of 20,000 new businesses.

For property investors, the implications are obvious: a rising population and fast-improving prosperity both augur very well. They promise growing demand for rental property, together with excellent prospects for achieving impressive yields and sustained capital appreciation.

Growth Sectors

Sector

Revenue | No. of jobs

Advanced manufacturing

Digital and media

Life sciences

Low carbon industries

Port and logistics

Professional business services

Tourism

£3.2bn / 50,000 jobs

£1.8bn / 22,000 jobs

£1bn / 10,000 jobs

£2bn / 27,000 jobs

£0.7bn / 26,000 jobs

£8bn / 107,000 jobs

£4.53bn / 53,500 jobs

The Universities

Liverpool and its surrounding area boast four universities:

Collectively, they serve a student body of around 90,000 and produce 30,000 graduates every year. They are important employers in their own right, attracting highly-skilled academics, researchers and management professionals from across the world, and their student numbers play a significant role in maintaining private sector rental demand.

Liverpool’s Property Market

Over recent years, property market surveys have consistently ranked Liverpool as one of the UK’s top destinations for capital growth, rental growth and excellent rental yields. ONS reports that in the 12 months to July 2024, average values rose by +2.9%, which was well ahead of the national average and CPI inflation. However, at a mean sale price of £179,000, properties here tend to be much more affordable than in many other parts of the country, so there are attractive deals to be had.

On the measure of rental growth, the city has also performed well. In October, ONS noted that “private rents rose to an average of £789 in August 2024, an annual increase of +8.5% from £727 in August 2023.” Again, this faster than the national average and far ahead of inflation. In its Q3 rental Report, Zoopla ranked Liverpool third in in its index of 15 major UK cities, reporting faster growth than in other popular buy-to-let markets such as Manchester, Birmingham, Sheffield and Leeds.

Finally, that combination of strong rental growth and comparatively low asking prices is a reliable recipe for excellent yields. Accordingly, October figures from Propertydata show that across the central postcodes of Liverpool (L1 to L7), average yields range between 4.5% and 7.7% – all respectable and inflation-beating results.

Property Market Data (Liverpool)

Sources:

ONS, October 2024
Propertydata, October 2024

The Docklands

Although the city centre and waterfront are attracting vast sums of investment, so too are Liverpool’s docklands. Peel Ports is a key driver of much of the area’s current regeneration, and so too is the growth of the offshore renewables sector.

Inward Investment

Liverpool2 Container Port: Impact: £428 million / c. 5,000 jobs
Freeport Status: Impact: £850 million / 14,000 jobs
Romal Capital, Waterfront: Impact: £100 million / transport improvements
Everton FC Stadium: Impact: £1.3 billion / 15,000 jobs
Growth in renewable sector: Impact: £3.5 billion / 22,000 jobs

These major developments provide yet more evidence of continuing, large-scale job creation. This, in turn, will inevitably attract new residents to the area, adding to demand within an already overstretched rental market. This, coupled with the increase in average earnings that will almost certainly result from growth in high-value industries, should support rising rental values and strong capital appreciation over the longer term.

Developments in Merseyside

all developments

Wirral at a Glance

Location: Merseyside
Population (borough): 320,000
Local economy: £6.2 billion
Economy – Warrington & Cheshire £30 billion | Growth target +£23 billion by 2040
Employment (all local areas) +227,000 extra jobs by 2040

The Wirral peninsula is part of the highly successful Liverpool City Region but, geographically at least, it stands apart, separated by the flow of the River Mersey. To its south and west, it is similarly divided from the coast of North Wales by the River Dee and its estuary.

Its position lends the area a certain distinctiveness but there is no sense of isolation. Rather, Wirral businesses and residents benefit from a ‘best of both worlds’ effect. Local residents have access to big city amenities, open green spaces, their own local beaches and a host of other attractions and leisure amenities. Many major employers are virtually on their doorsteps and yet parts of the peninsula have a decidedly quiet and suburban feel.

This unique mix of qualities has helped to make Wirral a popular place for people to settle. What’s more, given the rapid economic growth of the City Region and neighbouring Cheshire, employment rates are likely to climb steadily and should draw workers to the area in ever increasing numbers. Since these new incomers will all need to buy or rent accommodation, this bodes well for property investors, who can be confident of strong demand, affordable prices, good yields and longer-term capital gains.

Wirral’s Cheshire Connection

Wirral is receiving an important boost from the work of the neighbouring Cheshire and Warrington Local Enterprise Partnership. It has spent more than £320 million on infrastructure, training and business support programmes, and expects to unlock “a further £380 million of public and private investment over the next 10 years.” The LEP notes that by 2040, it “expects to deliver 127,000 extra jobs, and increase productivity to 120% of the UK average.”

Inward Investment

While Liverpool can feel justly proud of its success in attracting major investments such as Liverpool Waters, Wirral is faring equally well. In fact, given its relatively small population, it could be said to be punching well above its weight. A clear example is Wirral Waters, another major investment by the Peel Group. The company describes it as “the largest and most exciting regeneration project in the UK.”

Scheduled to continue for the next 30 years, Wirral Waters focuses on the southern bank of the Mersey, extending over a 25-mile (40km) length, and an area of 500 acres (c. 200 hectares). The project seeks to create a sustainable location for local and international businesses, and to create more than 20,000 permanent jobs. As these roles develop, demand for local housing is bound to increase, making modern and well-located properties especially attractive.

Property Market Data (Wirral)

Source:

ONS, October 2024

Summary

Merseyside offers property investors a wide choice of rewarding rental markets and an attractive combination of strengths.

A thriving economy
Low investment costs
Some of the UK’s highest yields
Fast rising rental demand
Exceptional capital growth
Excellent prospects for longer-term capital appreciation

Get in touch with us today.

We’re here to help and discuss your next property investment. Whatever your interest in residential property, we’re here to help. For practical support or just some good common-sense advice, please send us a message and we’ll get back to you.

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98 Reviews • Excellent 4.9 out of 5

Merseyside

Merseyside

Overview

Merseyside at a Glance

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Gallery

The City Region

Inward Investment

Growth Targets

Growth Sectors

The Universities

Liverpool’s Property Market

Property Market Data (Liverpool)

The Docklands

Inward Investment

Developments in Merseyside

Audley House

Liverpool

An outstanding development in a fast‐regenerating town

In an area of growing rental demand

Top‐quality apartments with great prospects for increasing value

Sustained capital appreciation

Excellent prospects for achieving impressive yields

Prices From

£150,000

Expected Returns

13%

Developer Discount

10%

Initial deposit required

£45,000

Church Walk

Liverpool

An outstanding development in a fast‐regenerating town

In an area of growing rental demand

Top‐quality apartments with great prospects for increasing value

Sustained capital appreciation

Excellent prospects for achieving impressive yields

Prices From

£118,500

Expected Returns

18%

Developer Discount

10%

Initial deposit required

£33,550

Wirral at a Glance

Wirral’s Cheshire Connection

Inward Investment

Property Market Data (Wirral)

Summary

Get in touch with us today.

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