Why Liverpool and Manchester?

The short-term rental market is booming in Britain. Liverpool and Manchester are both recognised as great destinations for property investors. Both cities have extensive populations of young adults (students and young professionals), hence there is always a strong demand not only for purpose-built student accommodation but also for high-quality, long-term residential rentals.
What is less widely recognised, however, is that both Liverpool and Manchester also have a strong demand for short-term rental accommodation.
This demand comes not only from tourists but also from EFL students and business people. There is now a cluster of short-term lettings hotspots in Liverpool and Manchester that can generate excellent returns for property investors.

Liverpool

Any property investor familiar with Liverpool will probably know that Fairfield is a popular destination for student renters.
They may even know that long-term rental yields in this area are currently the best in the city. What they may not know is that with short let the already great yield can easily be doubled, and that’s assuming 50% occupancy to allow for seasonal fluctuations.
While Fairfield offers the richest pickings, there are other parts of Liverpool which offer short-term fantastic rental yields. These include Walton, Kensington, Kirkdale, Anfield and Toxteth.

Manchester

While the property rental prices in Manchester are still very affordable (especially compared with London), there is no denying that they have gone up over recent years and this has placed downward pressure on yields for rental arbitrage.
Having said that, Manchester’s two, best short-term rental areas, Hulme and Levenshulme, still offer triple-digit yields, again assuming 50% occupancy.

Future

There are two good reasons why property investors can feel confident and safe about moving into the short-term rental market in either Liverpool or Manchester with Airbrick Finance.
The first is that both cities are benefitting from regeneration projects which can reasonably be expected to increase demand for short-term rental accommodation.
Liverpool has committed to a £14bn regeneration plan to improve the city and its infrastructure and to improve its standing as the host destination of choice for major events, including many sporting events.
Manchester has committed to a £1bn expansion of its airport, which, literally by definition, is intended to bring more people directly into the city, eliminating the need to transfer from London (and for those who do need to travel up from London, HS2 is on the way).
The second reason is that all the areas listed are places in which there is high demand for long-term residential accommodation.
Therefore even if Airbrick felt that the property was under-performing as a short-term rental, it is very likely that they would be able to make a seamless transition to their hybrid system of short-mid-long-term rentals.