We’ve said it before, although it’s worth repeating once more: There’s a new ‘L’ in town where the UK property market is concerned. We are, of course, talking about the northern English city of Liverpool.
Anyone familiar with our blogs will know we’ve talked about Liverpool at length, especially in terms of buy-to-let properties and even student lets. Quite simply, the city has an abundance of untapped potential for investors, with low entry rates paired against high rental yields.
Plus, the city has plenty going for it, what with it being a magnet for tourists and students alike. Liverpool also has billions of pounds worth of investment projects currently away, meaning the long term future of the city looks equally bright.
However, we now have a new opportunity on the table in the form of Liverpool short term lets that we’d like you to get familiar with. Offering plenty of flexibility for investors, plus the chance to capitalise on the millions who come to visit, study and work in the city every year, short term lets in Liverpool are worth taking note of for investors and here’s why.
Liverpool At A Glance
- Population of 900,000 (metro area)
- The city attracts 54 million tourists a year
- 14bn of regeneration work underway
- Five universities with 70,000 students
- Home to its own airport and major seaport
Why Liverpool Is A Magnet For Property Investors
Liverpool has long held the interest of our investors seeking high yields for a modest outlay. The city is going through huge changes, all positive, and with that, both capital values and rents are rising significantly annually.
The city also topped the table of UK growth cities in 2021, with price rises of a whopping 10.6%. It is also the UK’s highest yielding city, and rents are rising, which is yet more good news for anyone who has already invested in property in Liverpool.
For those reading who are yet to invest in Liverpool, there’s even more to look forward to coming up. Regeneration projects, including Project Jennifer, the Knowledge Quarter and Liverpool Waters, are worth circa £14bn and are in full flow.
Furthermore, the city has plans to develop nearly 400 acres of land, build over 30,000 new homes, and create nearly 40,000 new jobs in the coming months, which will ultimately bring more people not to mention demand to an already vibrant city. Growth should continue well into the future, making Liverpool a fantastic proposition for investors moving forward.
The Short Term Let Market In Liverpool
With two Premier League football clubs, Beatles tourism, more museums than any city other than London, world-renowned architecture and five established universities, Liverpool is an obvious city for those considering short term lets.
The city welcomes 54 million tourists and 4.8 million guests per year. With no restriction on the number of days, landlords can let their apartments for Liverpool short lets (in London landlords are limited to 90 days per annum) returns can be sensational if you hit a decent level of occupancy, and Liverpool gives you as good a chance of that as anywhere. The average occupancy for the entire city is 48%, which is good going.
However, to really optimise your returns, we recommend buying good quality accommodation in developments in close proximity to attractions and regeneration zones. Our Bastion Point Liverpool opportunities that we have for you here at Thirlmere Deacon couldn’t be better positioned where Liverpool tourism is concerned, as the accommodation is located on Naylor Street in the heart of Liverpool City Centre.
Airbnb is the market leader in short lets and suggests that the daily rate of properties in Liverpool is £145. On this basis, the earning potential in short-term lets in Liverpool is £26,500 a year, which should more than cover your mortgage and overheads leaving you with a tidy profit, whether managing yourself or enlisting a SA management company to do the work for you.
Short Term Lets FAQs
We’ve answered some of the most common questions about short term lets below. Don’t see your question listed? Skip to the end of this post to find our contact information, where one of our team will be able to help you further.
What Is Considered A Short Term Let?
A short term let is a property that is designed to be let out on a temporary basis of less than six months. Typically, the property will be supplied fully furnished with utilities, including the likes of television or internet services included within the price of the rent. Landlords are also expected to provide bed linen, china, glassware cutlery etc., as short term lets are intended to be fully functional properties.
How Long Is A Short Term Let?
As mentioned, short term lets can be for as long as six months. However, with the likes of Airbnb and Booking.com, short term lets can be booked for as little as a couple of nights or even a week as an alternative to a hotel.
It is actually this level of flexibility that is appealing to landlords and tenants alike since the availability of the property can be updated as required.
For example, if the landlord wanted to stay in the property, they wouldn’t have to wait until the end of a long tenancy to do so. Likewise, if the landlord wants to sell the property when the sales market is strong, they can close off additional bookings at any time to capitalise on the market.
Who Uses Short Term Lets?
In a word, anyone! Commonly, tourists book short term lets instead of booking a hotel. For example, those with families who would like a home from home, especially in terms of the ability to cook and have separate living and sleeping areas for their children.
Likewise, short term lets can also be ideal for couples and working professionals too. If they are staying for less than six months, then it’s usually easier and cheaper to secure a short term let versus a traditional rental property.
In a city such as Liverpool which has 70,000 students, the student short term let market is also something to consider. Some students may not have secured student accommodation due to clearing, and others may only be on short courses. For students relocating from abroad, they may also prefer short term accommodation while they get settled in the UK – so there are plenty of markets to explore here.
What Are The Benefits Of Short Term Lets?
There are benefits to be had on both sides of the short term lets coin. Starting with tenants, short term lets often provide more comfort and convenience, especially versus a hotel, hostel or staying with friends or relatives. After all, everyone likes having their own space, not to mention different zones for working, eating and sleeping in, which a hotel room simply doesn’t provide.
For landlords, some of the main benefits of short term lets include:
- Short term lets can bring in 30% more profit versus long term lets
- Rates can be raised during high demand times, i.e. festivals, holidays and other significant events
- Flexibility over how long your property is let out for, depending on whether you want to live in the property for some of the time or sell it further down the line when the market is good at short notice
- Capitalise on the local hotel market, especially if the city attracts tourists, students and working professionals
- Easy to market the property on booking sites, including collecting positive reviews to reduce void periods and build trust
- Many booking sites are now available, meaning your property can be booked 24/7 in just a couple of taps
- You don’t need to go through a lengthy tenant moving in and out process – you can even hire cleaners or management to take care of guest turnover for you
Short Term Lets Liverpool – Reserve Your Investment Property Now And Get A £10,000 Discount
Investors look to us here at Thirlmere Deacon to bring them innovative investment properties across the UK and beyond. The opportunities we currently have available in Liverpool are no exception.
Our Bastion Point properties in Liverpool are projected to achieve an 8%-9% yield and can be secured for just a 30% deposit, with a £10,000 discount available for those who sign up as early investors.
Located just moments from the Albert Dock, Bastion Point provides an unrivalled location both for investors and those looking to book a short term let in Liverpool.
Are you interested in investing in the Liverpool short term let market? Give our team a call today on +44 (0) 2039507939, or drop us a message to secure your investment or to find out more.