Royal Liver Building, Corestate, pPlace North West

Liverpool rents have risen between 10% and 12%. Credit: Place North West

Liverpool rents soar as demand surges

Annual rates for apartments across the city have skyrocketed by between 10% and 12%, surpassing the national average rental growth of 5.1%.

City Residential’s latest quarterly report on Liverpool’s rental market states that rents are now soaring with “no letup in demand” from tenants, ending several years of low rental inflation in the city.

Managing director of City Residential Alan Bevan highlighted that yields have risen to “extremely attractive levels” not seen for around 15 years, with rates “likely to stay higher for longer.”

Bevan described the previous quarter as a “landlord’s delight”. Strong activity levels and low levels of stock mean that tenants want to stay in their properties for longer, while remaining willing to pay higher rents.

The residential lettings market might begin to face some challenges, however. The report states that increasing rents mean that more people are considering buying as an alternative option, even with higher mortgage rates.

However, there are a number of build-to-rent developments under construction in the city and due for completion in the next two years. These projects include X1 and Vermont’s Patagonia Place scheme now on site in Peel’s Princes Dock, which will deliver 278 apartments.

Liverpool’s student market has also recovered strongly post-Covid. The report draws on Unite Students’ trading announcement in early July to suggest that the anticipated take-up for the 2023/2024 academic year looks positive.

Unite Students’ report looks across the whole of the UK, but the company does have a strong presence across the city with 3,500 rooms and highlights a 98% take up and a 7% increase in rents.

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Supply and Demand, don’t think many Liverpool councillors are familiar with that as they refuse various apartment applications in the city centre or restrict their height.
Height restrictions mean less flats, less flats limits supply, and where there is demand rents/prices will go up.
Councillors (and others) may complain about “greedy” developers or landlords but anyone selling their house wants as much as they can get for it.
By baulking the market Liverpool Councillors blocking developments are part of the reason rents are going up.
Looked at from another angle it’s great that people are demanding to live in Liverpool and this is clear evidence that good developers can make a good yield by building here.

By Anonymous

It would be interesting to know – not sure if it’s in the report as the link doesn’t work – quite how much the low stock (and therefore increased rents for what’s there) of available rental units is down to more and more of them being taken out of the market for long-term renters and given over to AirBnbs for the weekend party crowd. Which is good for the bar owners, but less good for the neighbours and rest of the non-visitor economy…

By Anonymous

    Hi Anonymous – the link to the report should now work. Apologies. Best – Julia

    By Julia Hatmaker

They’re not wanting to pay higher rents, they’re being left with no other options.

By Willow

Anonymous 3:40pm is correct. If you limit supply then prices rise.

I feel the council is now much more on track. However, the planning committee is separate to the council. The committee needs new guidance where refusing quality submissions is difficult.

For what it is worth I think the new tall building policy is ok in identifying areas for tall buildings but should then not place restrictions on height.

By Chris

It’s good that people are choosing to live here but shows that we need to get building more accommodation.

By Jeremy Fulton

As already stated, its ridiculous that LCC put up so many barriers to new development which would provide much needs jobs, homes and regeneration and would prefer grotty derelict buildings and fly tipped empty plots instead

By GetItBuilt!

We should be encouraging more new Apartments and the higher the better.
We want a lively and vibrant city and with more people who live in the City Centre – – more demand for goods/services -all good for the Economy.
Look at Manchester City Centre – That is what we need to be like – Liverpool City Council need to wake up , open their eyes and stop preventing the Development of our City .

By Stanley Parkend FRICS

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