House prices in certain areas of Liverpool have continued to plummet since the recession, with properties in certain areas available for as little as £10,000 – an absolute bargain for would-be landlords who aren’t afraid of putting the work in. But you’d better act fast, as the city’s fortunes look set to change, with an influx of cash from various property deals.
Commercial property values in the city centre are going up thanks to major purchases by Deloitte, while residential property is benefiting from overseas and institutional investments. Property expert Alan Bevan has called Liverpool “undervalued”, and believes that investors have been put off in the past by misconceptions about the city.
“I’ll be amazed if by 2019 we do not have 50,000 people living in our city centre. That will be a five-fold increase since 2000,” he told the Liverpool Echo. He predicts that the average rent on a two-bed apartment in Liverpool city centre will exceed £900 in the next five years. “If you buy at this current capital value and you get this rental growth then your investment is going to be the best in the UK,” he says.
This impending property boom is accompanied by a new license scheme for landlords in Liverpool, designed to cut out the cowboys. “Landlord licensing will drive up the quality of the 50,000 privately rented properties in the city and help tenants plagued by rogue landlords,” says assistant mayor Ann O’Byrne.
A license costs £400 and lasts five years. Landlords can also purchase licenses for additional properties at £350. But when you consider the potential profit to be made, a landlord license is a small price to pay.