Top property investor ups stake in city house boom

August 13, 2007

Aug 13 2007 by Neil Hodgson, Liverpool Echo

A LEADING property investor is increasing its Liverpool portfolio in the face of stiff competition in the region’s booming housing market.

Edinburgh-based Grant Management buys six to eight traditional three-bed terraced houses a month in the south of the city for renovation as student accommodation for its 300-plus investors.

But their Liverpool buyer Louise Dyson, who manages more than 100 Liverpool properties, has increased her investment to 10 a month to meet rising demand.

However, with average rental yields of around 7%, house price growth of 47% over the past three years and the city’s ongoing regeneration, she said Liverpool is now on the radar of more investors.

“Six to eight months ago I virtually had a monopoly on the market and was the only person turning up for viewings. But now the competition is quite tough and everything is going over the asking price.

“The properties are predominantly let to students and a lot of parents are now competing with the developers and buy-to-let landlords. Instead of putting their son or daughter into rented accommodation, they're just buying a house, which usually works out more cheaply for them and means they benefit in the longer term from house price growth.”

Property agent Savills says Liverpool house prices have grown 188% over the past nine years to an average £125,685.