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Why Liverpool is a Hotspot for Student Property Investment
We remember when one of our clients first looked into Liverpool for property investment. The city just felt right—there was this buzz in the air. With its rich culture and being home to universities like the University of Liverpool and Liverpool John Moores, the student scene is massive.
What stood out was how affordable it was compared to cities like London or Manchester. You are getting so much more for your money, and the demand for student housing never seems to dip.
Plus, Liverpool’s regeneration projects are in full swing, so you can be confident that the area would appreciate over time. Honestly, if you are serious about building a property portfolio, Liverpool is a no-brainer for student housing.
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High Rental Yields in Key Student Areas
According to the Paragon Bank,
When it comes to student property in Liverpool, the rental yield is quite impressive. In fact, Liverpool has one of the highest yields in the UK, with an average of 8.93%. This means that landlords renting out properties to students are seeing excellent returns compared to other types of rental properties.
What makes student properties in Liverpool particularly attractive is the strong demand. With a number of universities in the city, including the prestigious University of Liverpool (a Russell Group member), there’s always a steady stream of students looking for accommodation.
This demand isn’t going anywhere either. As university enrolments are predicted to increase over the coming years, student properties are going to remain a strong investment.
Landlords often prefer renting to students because the yield is higher than the average buy-to-let property. Plus, students often have parental guarantees, which means there’s less worry about arrears.
Another key point is that experienced landlords have really honed in on the local student market. They know the best streets, the most sought-after areas, and even the types of properties students want, making it a win-win situation.
While PBSA (purpose-built student accommodation) is gaining popularity, traditional private rentals still play a huge role in housing students.
The bottom line? If we’re talking student property, Liverpool remains one of the best cities to invest in, thanks to its high yields and steady demand.
Liverpool’s large student population, supported by prestigious institutions like the Liverpool Institute, makes the city a prime location for student accommodation, especially in student areas such as the Liverpool city centre, where student houses and Liverpool student accommodation options are in high demand across the North West.
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Best Locations for Investing in Student Houses in Liverpool
If you’re thinking about investing in student property in Liverpool, location is key.
Students prioritise convenience, and being close to universities like the University of Liverpool, Liverpool John Moores, or Liverpool Hope makes a big difference. This proximity not only keeps your property occupied but also allows for higher rents.
Now, when we talk about student areas, certain neighbourhoods stand out. The city centre, particularly the L1 and L2 postcodes, is one of the best areas, offering an impressive rental yield of 8.93% and a potential income of £13,860.
Properties here are slightly more expensive, with an average value of £205,278, but the returns speak for themselves.
Kensington (L6 postcode) is another solid area, with a rental yield of 7% and a rental income of £14,000. It’s close to the universities and offers great value for both students and investors.
Wavertree (L15), known for its affordability and lively student vibe, offers a slightly lower yield at 6%, but it’s still a popular choice for both landlords and students, with a rental income of £11,400.
For a quieter, more postgraduate-friendly vibe, areas like Sefton Park or Lark Lane are great options. They’re ideal if you’re looking to attract a different type of student or even professionals, which can provide flexibility in your tenant base.
Liverpool’s student property market offers a good mix of high yields, strong demand, and a range of options depending on the type of student you want to attract. Keep an eye on neighbourhoods, as that’s where the key to success lies!
Here’s a simplified version of the property value, rental yield, and rental income earned from various locations around Liverpool.
| Location | Postcode | Property Value | Rental Yield | Rental Income |
|---|---|---|---|---|
| City Centre | L1, L2 | £205,278 | 8.93% | £13,860 |
| Georgian Quarter | L8 | £220,000 | 7.50% | £12,100 |
| Kensington | L6 | £200,000 | 7.00% | £14,000 |
| Edge Hill | L7 | £180,000 | 6.50% | £11,700 |
| Wavertree | L15 | £190,000 | 6.00% | £11,400 |
Comparing Liverpool With Other Major UK Cities
Here is the comparison of 3 major investment elements that being an investor you should consider before choosing the best place to invest.
This comparison table shows property value, rental yield, and rental income of various major UK cities.
| Location | Property Value | Rental Yield | Rental Income |
|---|---|---|---|
| Liverpool | £176,000 | 8.93% | £13,860 |
| Birmingham | £180,000 | 7.00% | £12,600 |
| Leeds | £170,000 | 6.50% | £11,050 |
| Glasgow | £150,000 | 6.00% | £9,000 |
| Bristol | £220,000 | 5.50% | £12,100 |
| Edinburgh | £190,000 | 5.00% | £9,500 |
Key Considerations Before Buying Student Houses
Before buying a student house, there is more to consider than just the property price. You need to think about how university students live today. They want convenience, so properties close to the city centre and near train stations or universities like Liverpool John Moores University are always in demand.
You should also explore the student accommodation options available. Does the property suit a group of students, or would it be better divided into smaller units for short term student rentals?
Additionally, don’t forget about the local tenancy deposit scheme requirements, such as student deposits, and ensure you comply with HMO licensing if you’re dealing with multiple tenants. Staying informed with student property news and using a reliable student accommodation platform can help you navigate these details and avoid potential headaches down the line.
Ensuring Properties Meet Student Expectations
One thing you need to know is that students expect a lot from their accommodation these days. They want a place that is fully furnished, with working appliances and fast Wi-Fi. If you want to keep your tenants happy and improve student satisfaction, make sure everything is in good working order from day one. Whether you’re offering Liverpool student homes, Cloud Student Homes, or a range of student apartments, maintaining high standards is crucial.
A well-kept property, including communal spaces, will always attract more interest, particularly in areas with a lively student atmosphere and a strong student community. Offering private student accommodation or a selection of student houses helps provide a variety of options for student accommodation. Having a property manager on standby to address any issues quickly ensures your student rental houses run smoothly, keeping your tenants satisfied and reducing turnover.
How to Maximise Passive Income from Student Properties
Maximising passive income is all about playing it smart. Firstly, offer all-inclusive rent options. Most university accommodations and student flats are more attractive when students don’t have to worry about separate bills for Wi-Fi, water, and electricity. Investors have found that this approach makes the property type more appealing, and you can even charge a bit more for the convenience.
Second, location is key. Choose popular student areas like Smithdown Road or the Wavertree area, where the student population is high. These areas, often featuring double bedrooms or 5-bed student houses, ensure you’re less likely to deal with void periods. Lastly, keep up with regular maintenance. If you think delaying repairs is saving you money, you’re wrong! In the long run, a well-kept accommodation for students allows you to charge competitive rents and avoid costly repair bills. For Liverpool student homes near the creative campus, this is particularly important to maintain high demand and a strong rental income.
Different Types of Student Accommodation in Liverpool
When you are looking at student housing in Liverpool, the big choice comes down to shared houses versus studio apartments. If you ask most students, they are usually after shared houses, especially in areas like Smithdown Road.
And it makes complete sense. Rent is cheaper when you split it with friends. Plus, most of the students love to have a proper communal space to relax.
But then, you have the students who prefer a bit more peace and quiet. Studio apartments are perfect for that, particularly for postgrads or international students. Studios might cost more, but they come with the privacy some students really crave. These tend to be closer to the city centre, which makes them a good fit for students who want to be near everything but value their space.
Challenges and Risks to Consider
When you invest in student properties, there are a few things you really need to keep in mind.
Maintaining Rental Cycle in an Academic Year
First off, the academic year can make the rental cycle tricky. If you do not fill the property in time for the start of the term, you might end up with it sitting empty for a while, which is frustrating.
And then there is the wear and tear. Students are not exactly known for taking the best care of their rented homes. Things will break whether it is a leaking tap or a wobbly chair. Having a reliable handyman on-call can make your life a lot easier. Plus, you also need to get all sorts of legal work done beforehand.
Managing Tenant-Related Issues
Managing students is always an interesting challenge. You are going to run into late payments, noise complaints, and the odd bit of property damage. That is just part of renting to students.
We have found that the key is being really clear from day one. Get a strong tenancy agreement in place—one that covers everything from noise levels to responsibility for keeping communal areas tidy.
You will also want to do regular property checks, not to be a nuisance but to stay ahead of any issues. Staying communicative and approachable helps a lot too. If tenants know you are fair, they are more likely to take care of the place and follow the rules.
Conclusion
So, when it comes down to it, student houses in Liverpool are a solid investment if you know where to look.
Areas like the city centre or Kensington offer high yields and consistent demand, while places like Wavertree cater to those looking for a more affordable but still vibrant student experience. The key is always going to be location—students want to be close to campus and have easy access to the social life that Liverpool is known for.
It’s clear that Liverpool’s student market isn’t going anywhere anytime soon, especially with enrolment numbers on the rise. Whether you’re looking for higher returns or a steady, reliable income, there’s a spot for every type of landlord.
And, let’s be honest, students will always need a place to live—so if you choose your area wisely and keep an eye on what students are looking for, you’ll be in good shape.
FAQ
Communication is everything. You need to be clear with your tenants from the start about your expectations. Make sure your tenant agreement covers everything starting from the rent deadlines to maintaining noise levels.
Smithdown Road is always a favourite because it is affordable and close to everything students need. Kensington and Wavertree are also popular because they are near the main campuses of Liverpool John Moores and the University of Liverpool. These deals are perfect if you want consistent demand.
It depends on the type of student you are targeting. For undergraduates shared houses are usually preferable. But for postgraduates or international students, studio apartments are often more appealing. They are willing to pay a little extra for privacy and their own space, especially in more central locations.
The trick is timing. You need to start marketing your property well before the academic year begins. We have found that advertising six months ahead gives you a better chance of filling the house. With flexible lease term you can easily cater to the needs of different students. And in this way, you can avoid having the place sit empty.
One way you increase income is by offering all-inclusive rents. Students love having everything covered—Wi-Fi, utilities, and so on—and they are often willing to pay a bit more for that convenience. Keeping the property well-maintained also helps justify higher rent. When tenants see you are taking care of the place, they are more likely to stay and recommend it to others.