Tuesday 19th March 2019


Short-term lets in Liverpool offer yields of up to 30.7%

Buy-to-let landlords who own property in Liverpool or Manchester could potentially achieve short-term letting yields of up to 30.7%, according to Portico Host.

The short-term letting agency has conducted research on short-term lets in the two cities and found that landlords in Walton, Liverpool, are achieving the best short-term let yields at 30.68%, compared to landlords of longer-term rentals, who can achieve a yield of 7.88%.

Walton is located on the outskirts of Liverpool city centre and is a diverse and longstanding residential area. Property prices are cheaper here than in other Liverpool postcodes, enabling landlords to achieve higher yields.

The highest long-term rental yield in Liverpool and Manchester can be found in Fairfield, Liverpool at 12.52%. The Airbnb yield is based on an occupancy rate of 60% of the year, which is typical for these types of properties due to seasonal demand.

Of the top 10 best performing locations for short-term lets in Liverpool and Manchester, the top five locations are in Liverpool postcodes L4, L6 and L7.

In Manchester, the highest Airbnb yields can be found in Hulme (M15) at 17.4%.

Rachel Dickman, regional manager, Portico Host, said: “It perhaps 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.

“Liverpool is becoming increasingly popular on the tourist trail, with 1.34 million people visiting the city in 2018, and with business travellers, students and young professionals. A growing number are wanting to stay in short term let properties, and the increased demand for this type of accommodation is underpinning the rents that can be achieved.”

Best performing locations for short term let yields in Liverpool and Manchester

Area

Airbnb Yield (%)

Airbnb Gross Income

Rental Yield (%)

Rental Gross Income

Monthly Rent

Avg. House Price

Postcode

Walton

30.68%

£22,192

7.88%

£5,700

£475

£72,316

L4

Fairfield

29.81%

£39,789

12.52%

£16,723

£1,393

£133,457

L6, L7

Kensington

29.40%

£36,334

12.10%

£14,959

1,246

£123,618

L6, L7

Anfield

27.73%

£27,594

10.03%

£9,981

£831

£99,489

L4, L6

Kirkdale

26%

£19,116

7.80%

£5,785

£482

£73,564

L4

Hulme

17.51%

£23,818

6.60%

£8,928

£744

£136,000

M15

Rusholme/Fallowfield

14.31%

£20,994

7.36%

£10,806

£900

£146,667

M14

City Centre

12.76%

£27,442

6.30%

£13,504

£1,125

£214,957

M1, M2, M3

Ancoats

12.60%

£24,903

5.74%

£11,363

£946

£197,850

M4

Salford

12%

£21,418

6.29%

£11,718

£976

£186,200

M40, M6

 

There are currently 10,200 active listings in the North West on Airbnb, according to AirBnb’s latest insight report.  The report also states that Airbnb has brought in nearly £37million to the North West’s economy.

Portico’s Emma O’Rourke commented: “Good news also for landlords is that mortgage lenders are waking up to the popularity in short-term lets, although they do remain cautious of the risk it poses to their balance sheets.

“Last year, one lender launched a mortgage aimed specifically at Airbnb hosts and landlords who want to rent out rooms in their home for short and ad-hoc periods. We expect high street lenders to follow suit with more mortgage products for these types of properties coming to the market, making it easier for people to let a property in the short term.”


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