Investors keen to get involved in buoyant Liverpool property market
Two residential schemes by ethical developer Integritas Property Group (IPG) have sold out in less than three months.
The Liverpool-based developer said its Copper Box scheme, located in Crosby, and Vaux, at Naylor Street in Liverpool, have become a focal point for investors who are swiftly capitalising on buy-to-let opportunities in the off-plan and renovation investment market.
This trend is occurring amidst the backdrop of the UK’s buy-to-let market displaying remarkable durability despite prevailing economic challenges.
Both Copper Box and Vaux at Naylor Street have benefited from the market growth of Liverpool. During the regeneration of the city, Liverpool experienced a remarkable year-on-year growth of 8.6% in property prices between 2021 and 2022, with the average property price currently sitting at £215,794, with flats fetching more than £141,424.
The strong price growth is expected to continue relative to the context of the wider UK property market, making the area well positioned to generate strong returns from investments in Liverpool’s property market, said IPG.
The wider North West region is also experiencing a period of growth, with average prices rising 7.2% over the past 12 months. This is being driven by factors including the economy, high employment rates and a high supply/demand imbalance.
IPG’s Copper Box development saw its 27 apartments sell out to the investor market in just two months.
Sold as a leasehold with a share of the freehold with an anticipated 6.5% anticipated NET rental yield, this investment will see a benefit from the £14bn already invested in Liverpool city centre. This comes ahead of the further £120m, which has been attained through the Local Finance For Growth Fund.
Vaux at Naylor Street also saw a record pre-reservation sell-out, with its 62 apartments being snapped up within 17 days. With rents expected to yield 7.5% and short term lettings investors yielding updates of 10% per annum, Vaux boasts an ideal city living experience for residents in a highly desired location.
It is currently subject to planning, which is expected imminently but already the development is greatly appealing to short-term let investors due to its proximity to the new £760m Everton football stadium.
Mitchell Walsh, IPG founder and managing director, said: “We are thrilled that these developments have both now sold out and the buy-to-let market in Liverpool looks to be performing well.
“With the recent drop in inflation, investor interest should keep growing. It appears that mortgage interest rates may have already peaked and are expected to decrease further, which will likely keep investors motivated.”
