Demand Boosts Liverpool Rents
The bustling apartment market in the city has witnessed a remarkable surge, as demand boosts Liverpool rents. In addition, with annual rates shooting up by an impressive 10% to 12%, easily surpassing the national average rental growth of 5.1%.
Unabated Demand: A Shift in Liverpool’s Rental Landscape
According to the latest quarterly report from City Residential, Liverpool’s rental sector is experiencing an unprecedented boom. In fact, with no signs of demand slowing down from eager tenants. This marks a significant departure from the previous years of sluggish rental inflation in the area.
Demand Boosts Liverpool Rents: Investment Attractiveness Peaks as Yields Reach a 15-Year High
Alan Bevan, the managing director of City Residential, emphasized that yields have now reached levels unseen in approximately 15 years. This situation presents an alluring prospect for investors. He further predicts that these elevated rates are likely to endure for the foreseeable future.
Tenant Retention Amidst Rising Rents: A Landlord’s Delight
The past quarter has been nothing short of a “landlord’s delight,” Bevan remarked. Robust activity levels combined with limited housing stock have encouraged tenants to extend their tenures, despite the increasing rental costs they’re facing.
Challenges Ahead: Encouraging Shift towards Property Ownership
Nevertheless, the residential lettings market may encounter some hurdles ahead. The report highlights that as rents continue to climb, more individuals are contemplating property ownership despite the prospect of higher mortgage rates.
Bright Future: Liverpool’s Thriving Housing Developments and Student Market
On the brighter side, several build-to-rent projects are currently underway in the city. Furthermore, these projects are expected to complete within the next two years. Notable among these developments is the Patagonia Place scheme. It is a collaborative effort between X1 and Vermont, situated in Peel’s Princes Dock. All in all, this project is set to deliver 278 modern apartments.
Moreover, Liverpool’s student housing market has made a robust recovery following the post-Covid lull. Citing Unite Students’ trading announcement in early July, the report paints a positive outlook for the anticipated uptake during the 2023/2024 academic year.
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