We think Liverpool, and specifically Anfield, is one of the best places to invest in property in the UK in 2023. Here are 5 reasons why…

Reason 1

The Manchester growth bubble has spread west to Liverpool which is rapidly catching up with the fantastic growth seen by Manchester in the last 20 years.

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As a whole, Liverpool property prices have only just returned to their 2008 peak…and Anfield prices are still below that peak. In 2008, just before the financial crash, the average selling price across the whole of Liverpool was £141,000. In 2018, it was £158,000. So, like most of the UK, Liverpool as a whole has more than recovered since the crash of 2008. The same cannot be said of Anfield. In 2008, the average selling price of an old (not new build), terraced, freehold house in Anfield was £81,400. In 2018, it was £63,200. That’s 22% below the peak! Anfield has been playing catch up for some time, and it continues to do so. We think Anfield will see considerable capital growth over the next 5-10 years.

But don’t just take our word for it - have a look and a play with the data yourself - go to http://a.plumplot.co.uk, filter by ‘Liverpool’, ‘2018’, ‘old’, ‘terrace’, ‘free’ and drill down into each of the areas, changing the date to see how prices have changed over the years.

Reason 2

Liverpool is undergoing a building boom and there is massive regeneration going on in Anfield.

The Anfield Project

The Anfield Project

Take a quick walk around Liverpool and you will see new developments springing up everywhere. Anfield has been a particular target for regeneration funding, with Liverpool FC and Liverpool City Council teaming up to pump hundreds of millions of pounds into the area. With hundreds of new build homes already surrounding Anfield stadium, and the next phase of the regeneration well underway, Anfield is already reaping the rewards. Find out more about The Anfield Project and Invest In Anfield.

Reason 3

Prices are low, yields are high, and there is huge potential for capital growth.

Simple, single-let terraced houses. A winning investment strategy.

Simple, single-let terraced houses. A winning investment strategy.

There is nothing fancy about this winning property strategy in Anfield. Buy, refurb, rent and hold for the long term. We own over 30 vanilla 2/3 bed buy to lets in Anfield, and our typical numbers look like this for a standard 2-bed terraced house;

  • Purchase (cash - no mortgage): £35,000

  • Stamp duty: £0 (no stamp duty to pay on properties under £40k)

  • Legals: £1,000

  • Refurb: £5,000

  • Total spend: £41,000

  • Rent per year: £5700

  • ROI: 14%

Many investors are happy to leave it there - 14% ROI on a vanilla single let is pretty good going! However, you hit the sweet spot when you take out a mortgage (so you can recycle your cash) after 6 months of ownership (this is typically how long you need to own a property before you can (re)mortgage it);

  • Take out 75% LTV mortgage after 6 months at £50k valuation, releasing £37,500

  • You spent £41,000 in total, so have £3500 ‘left in’ the property

  • Assuming a mortgage interest rate of 5%, your annual mortgage payments are £1875

  • Your rental income per year is still £5700

  • Your costs per year are your mortgage interest cost (£1875), plus building insurance (typically £125 for these type of houses), so your total costs are £2000

  • Your profit is therefore £3700

  • You have £3500 ‘left in’ the property, so your ROI is a cracking 106%!

Even without mortgaging, the returns you can achieve on these properties trumps many HMO deals.

If you’ve read this far, congratulations…and as a reward, here’s a little secret which makes investing in these type of houses all the more attractive. If purchasing a property in your own name, the minimum property value needed in order for a property to be mortgageable is £40,000. If buying in a Ltd Company, it’s £50,000. This means that there is less competition for houses below these prices as you need to be a cash buyer. You hit the sweet spot when you purchase one in cash for below these thresholds, do some refurbishment work to take the valuation above these thresholds, and then you can take out a mortgage after 6 months!

reason 4

Strong, and increasing, tenant demand

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We have over 30 x 2/3 bed terrace houses in and around Anfield. We have never struggled to rent our houses quickly. Many of our tenants are families working for local businesses and intend to stay with us for the long term.

Many people are moving from the South to the North due to the lower cost of living up North.

reason 5

Anfield is world-famous due to the heritage and success of the mighty Liverpool Football Club

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People come to visit Liverpool, and Anfield, from far and wide.

Two of our own properties near the stadium are operated as Serviced Accommodations (listed as a holiday let on Airbnb, booking.com etc) which has more than doubled our returns compared to renting the houses out on a normal AST. We plan on turning more of our houses into Serviced Accommodations to capitalise on their great locations near to the stadium. Check out one of our listings here.

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