Once a favourite for Middle Eastern property investors, rising property prices and dwindling rental yields in London have meant more investors have been searching for new ways to generate an income from UK property.

In the last few years, investment in the north of England has grown, as property buyers start to see the value of spending less to get a little more in terms of return percentages. Cities like Manchester and Leeds led the way in terms of growth in investment for years, but in the last couple of years, Liverpool has emerged as a leader, and one of the more popular places to buy rental stock, says a report from Experience Invest.

Liverpool’s property market’s strong performance across a variety of asset classes has provided overseas investors with many opportunities, each with their own benefits, for investors to choose from depending on their requirements.

Current fluctuations in the value of sterling has made the UK more favourable for Middle Eastern investors, who see the long-term value of buying a property in the UK and waiting for the pound’s recovery, it says.

Why Liverpool?
Here, take a look at just a few reasons why Liverpool, a city which has almost reinvented itself in the past few years, has become such a great place to buy, and why you should consider investment in the city for years to come.

Demand: Demand for rental property is high across the UK, with as many as 4.5 million households now living in the private rented sector, but few cities have as high a level of demand for rented homes as Liverpool does. With a rising number of businesses creating new jobs in the city, more and more people are flooding into Liverpool from across the UK, and they all need somewhere to live.

In addition, the fact that the city has more than 57,000 students is a real benefit for investors. Universities have a shortage of homes in which to accommodate the growing number of students each year, which creates a niche that the private sector, and its investors, can fill, making strong returns on the back of ever increasing demand for student property, the report says.
Exciting developments: Investing in Liverpool means being able to buy into some of the city's most exciting new developments, which are helping to redefine the skyline. For example, the new trifecta of buildings at Experience Invest's £250 million ($320.52 million) development Infinity is not only going to provide more than 1,000 new rental homes, it will also see one of the three towers become one of the tallest in Liverpool, breaking into the top three at 39 storeys high.
 
Developments such as Infinity also create some exciting new types of property in a market that has been crying out for such innovation for years. The on-site retail units, office space, a cinema room, gym and swimming pool at Infinity play directly into the wants and needs of private sector tenants, creating exciting new spaces that people want to live in, giving investors the peace of mind that there will be demand for their properties, it says.

High yields: Returns are a big thing for landlords whenever they're looking for new places to invest, and Liverpool delivers in this regard in a big way. While prices are lower for purchasing homes in Merseyside than they are in other large cities around the UK, the demand for rented accommodation has pushed up rental prices - which JLL said rose by 10.3 per cent last year.

This gives investors the chance to make very strong returns on their investment, with yields in Liverpool among the very best in the country. Averaging out at around six per cent in the city as a whole, some parts of Liverpool are starting to see rental yields creep above the 15 per cent mark, with the LS7 postcode leading the whole of the UK in terms of yields, the report says.

Well connected: Liverpool remains one of the most well-connected cities in the whole of the UK, which gives it an appeal that few can rival. In terms of infrastructure, the Merseyside city has its own airport, access to all of the other major settlements via motorway, ferry services and an excellent internal transport system. All of this makes it a great prospect for companies, because if people can get there easily, then it's easier to conduct business.

On top of this, Liverpool is part of the increasingly vibrant Northern Powerhouse, an economic area that is set to become one of the most important in the UK over the next few years. With a focus on the future, digital growth and business start-ups, involvement in the region should help cities such as Liverpool improve time and again, becoming hugely attractive to skilled residents over the coming years, it adds.

Thriving economy: Liverpool's economy remains one of the fastest growing in the UK, which bodes well for anyone who wants to invest in property with their eye on long-term growth. If you buy in now, the growing demand and increasing rental prices that continue to improve as the economy grows will only give you better returns for years to come, continues Experience Invest.
 
According to governmental data, Liverpool's economy has grown by around 40 per cent in the space of the past decade, while the first three months of this year alone saw the city improve its volume of start-up businesses by some 22 per cent. These are both indicators of just how well Liverpool is performing, and how those who have long-term goals in mind can really see their investments thrive in years to come, it added.

Thinking of investing in Liverpool?
The UK’s property market has been seen as something of a safe haven for many years and its clear property ownership laws and its relatively easy buying process are favoured by many overseas investors.

Experience Invest is showcasing its portfolio at Stand 4D30 at Cityscape Global Dubai between September 11 and 13and investors can discuss how investing in property in Liverpool could be beneficial to them, the company says.