Average rents hit all time high

As inflation continues to prove stubbornly high, and interest rates rise to deal with the issue, average rents in Liverpool city centre have hit an all time high. Across the main city centre postcodes of L1, L2 and L3 average rents are now around £810 having risen by around 10% over the last 12 months. With an increasing demand from tenants and a pipeline that’s struggling to keep up, further rises are expected over the coming 12 months.

Two other issues that are impacting on supply are the continued popularity of Airbnb/short term lets and the ongoing regulation of the industry by the government. Whilst there is growing evidence of an over supply in the Airbnb/short term market many landlords are considering this market in pursuit of higher net returns, something which is becoming increasingly less likely as supply outstrips demand. The ongoing regulation of the lettings market continues apace and will be further strengthened by the introduction of the Renters Reform Bill. This will only serve to drive some landlords out of the market, thereby reducing supply at a time when more supply is needed not less!

The rise in Liverpool City Centre rents come at a time when rents across the whole of the UK are also rising rapidly and hitting all time highs. An update from Zoopla this week highlighted that the cost of renting a home had hit a ten year high across England with rents 10.4% higher than 12 months ago.