According to the data, Airbnb hosts in Walton can expect to achieve a rental return of 30.68%, compared to owners of longer-term rentals, who can achieve a return of 7.88%. The highest long-term rental yield in Liverpool and Manchester is in Fairfield, Liverpool at 12.52%. Airbnb yield is based on 60% year-round occupancy, which is typical for these types of properties due to seasonal demand.
Walton is on the outskirts of Liverpool city center and is a diverse and long-standing residential area. Property prices are cheaper here than in other Liverpool postcodes and much cheaper than in London, where the average property price is four times that of Liverpool, allowing property owners to get exceptional returns.
Of the top ten locations for short-term rental yields, the top five are in the Liverpool postcodes: L4, L6 and L7. In Manchester, the highest Airbnb returns are in Hulme (M15) at 17.4%.
Rachel Dickman, Regional Director, Portico Host, said: “It is perhaps unsurprising that the properties that achieve the best returns are those located in the areas surrounding Liverpool and Manchester city centres. These places generally have excellent transport links, proximity to popular tourist attractions, employment hubs and good restaurants and cafes.
Liverpool is becoming increasingly popular on the tourist circuit, with 1.34 million people visiting the city in 2018, and with business travellers, students and young professionals. A growing number of people want to stay in short-term rental properties, and the increased demand for this type of accommodation is supporting the rents that can be achieved.
Liverpool are also undergoing a £14billion regeneration with plans for a new stadium for Everton football club and a £250million investment in road infrastructure. Its strengthening economy and infrastructure, along with its growing population of students and young professionals, and falling property prices, make investing in places such as Walton, Kensington, Fairfield and Anfield a choice. popular 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 of tourists and visitors as improved connections transportation made the visit easier. In 2018, Manchester welcomed 4.9 million visitors in 2018.
Hulme has seen over £400m of investment in the regeneration of the area. Its range of diverse restaurants, bars and shops has made it very popular with young professionals and it is only a few minutes walk from Manchester city centre. While Ancoats was named the 13th coolest neighborhood in the world in 2018 by Time Out. It’s a 10-minute walk from Piccadilly and offers affordable co-working spaces, river-view apartments, craft beer outlets and artisan bakeries.
There are currently 10,200 active listings in the North West on Airbnb, according to AirBnb’s latest analytics report. The report also says Airbnb has brought almost £37m to the North West economy.
Short-term rentals and Airbnb properties are not only popular with vacationers, but also those who are in between properties and are looking for the flexibility of short-term rentals with no overhead. They offer landlords and buy-to-let owners the opportunity to earn additional income from their properties, especially during the empty periods between student rentals or long-term rentals.
Emma O’Rourke says: “Also good news for landlords is that mortgage lenders are waking up to the popularity of short-term rentals, although they remain cautious about the risk it poses to their balance sheets. Last year, one lender launched a mortgage aimed specifically at Airbnb hosts and owners who want to rent rooms in their home for short, one-off periods. We expect high street lenders to follow suit with more mortgage products for these types of properties coming on the market, which will make it easier to rent a property in the short term.
Although more and more first time buyers have entered the property ladder in Manchester and Liverpool in recent years, the private rental sector has continued to grow. In the North West, the market is expected to overtake that of London in 2019. In Manchester, the private rental sector has grown by more than 149%, and in Liverpool by 181%, over the past 20 years according to data compiled by the BBC.
House prices and rents for longer-term rental properties are expected to rise by around 3% per annum over the next 5 years in Manchester as housing demand continues to outstrip supply. In Liverpool, property prices are expected to grow by 2% per year over the next five years, and rents by 3%.
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