Best short term letting yields in Liverpool and Manchester revealed
Landlords of short term let properties in Fairfield, Liverpool, are achieving the best yields in the North West’s largest cities of Liverpool and Manchester, according to new research.
They can expect to achieve a rental yield of around 27.2%, compared to landlords of longer term rentals in the same area at 13.6%, according to the figures from short term letting agency Portico Host.
This was the highest available long term rental yield in both Liverpool and Manchester put together. The short let yield is based on an occupancy rate of 50% of the year, which is typical for these types of properties due to seasonal demand.
Fairfield is on the outskirts of Liverpool city centre and is a residential area which has become more popular and gentrified in recent years. A sizeable student population has attached itself to the area, attracted by the proximity of the city centre, the new shopping centre and an array of eateries that have recently popped up, the firm said.
The next best short term let yields are all in Liverpool with Walton at 25.5%, Kensington at 24.2%, Kirkdale at 23.9%, Anfield at 22.7%, Toxteth at 20.9%, Orrell Park at 17.5% and Vauxhall at 15.5%. This is followed by Hulme in Manchester at 15.1% then Levenshulme in Manchester at 13.6%.
‘It isn’t surprising to find that the properties that are achieving the greatest returns are those that are situated in areas surrounding Liverpool and Manchester city centres. These places typically have excellent transport links, proximity to popular tourist attractions, employment hubs, and good restaurants and cafes,’ said Rachel Dickman, regional manager of Portico Host.
‘Liverpool is becoming increasingly popular on the tourist trail, with 1.34 million people visiting the city in 2018, including business travellers, students and young professionals.
It’s also continuing to host and attract major sporting events and these factors are resulting in a growing number of people wanting to stay in short let properties in Liverpool, and the increased demand for this type of accommodation is underpinning the rents that can be achieved,’ she explained.
She pointed out that Liverpool is also undergoing a £14 billion regeneration with plans for a new stadium for Everton football club and £250 million investment in road infrastructure. The strengthening of its economy and infrastructure, along with its growing student and young professional population, and lower property prices, make investment in places such as Fairfield, Kensington, Walton and Anfield a popular choice for investors.
The same can be said for Manchester, which has one of the fastest growing populations outside of London, and alongside Liverpool has seen a huge influx in tourists and visitors, as improved transport links have made it easier to visit. In 2018, Manchester hosted 4.9 million visitors.
Hulme, where Manchester’s highest short let yields can be found, has seen more than £400 million worth of investment into regenerating the area. Its array of diverse eateries, bars and shops has made it very popular with young professionals and it is just a few minutes’ walk from Manchester city centre.