Guide to Investing in Buy-to-Let Property Investments in Southport

Welcome to this comprehensive guide to Property Investment in Southport by RCCIL, your trusted partner in property investment advice. As seasoned experts in UK property markets, we provide in-depth insights and reliable advice to help you make informed decisions. In this guide, we’ll explore why Southport, a classic British coastal town, is a prime choice for property investment and buy-to-let opportunities.

Why Consider Southport for Property Investment?

Located in Merseyside, North West England, Southport combines traditional seaside charm with promising investment potential. Known for its Victorian architecture, beautiful coastline, and vibrant community, Southport has become increasingly attractive for investors seeking growth, stability, and a lucrative rental market.

Strong Rental Demand and Yields

Regeneration and Infrastructure Projects

  • Southport has seen significant regeneration projects, enhancing its appeal and improving overall infrastructure.
  • Projects like the Southport Town Deal, which has received substantial government funding, aim to revitalize the town centre, improve public spaces, and develop waterfront areas. These developments are expected to increase property values over time, making now a strategic time to invest.

Government Backing and Community Support

  • The support from both the government and the local community has been instrumental in Southport’s transformation. The Town Deal’s funding has not only ignited economic opportunities but also fostered a community-centred vision of growth and sustainability.
  • This support contributes to a stable investment environment where property values are bolstered by long-term planning and community buy-in, offering greater security to investors.

Growing Tourism and Local Economy

  • Southport is a well-known tourist destination, bringing visitors year-round to its beaches, golf courses, and the Southport Flower Show. This tourist economy supports local businesses, creating jobs and stability in the town.
  • The increased influx of visitors boosts short-term rental opportunities, allowing investors to explore holiday lets and Airbnb rentals in addition to traditional buy-to-let options.

Excellent Transport Links

  • Southport is well-connected, with regular train services to Liverpool, Manchester, and other major cities, making it ideal for commuters.
  • Easy access to motorways and public transportation networks increases its attractiveness as a residential area, driving up rental demand from working professionals seeking affordable housing outside city centres. Learn more about Southport with this handy Southport fact sheet from Merseyrail.

High Quality of Life and Amenities

  • Southport offers a high quality of life with access to beautiful parks, high-performing schools, and healthcare facilities, appealing to both families and retirees.
  • The town boasts a thriving high street with restaurants, cafes, and shops, providing residents with a balanced lifestyle between urban convenience and coastal relaxation.

Top Areas in Southport for Property Investment

When considering an investment, certain neighbourhoods in Southport offer unique opportunities for growth, rental yields, and stability. Southport offers several areas with promising opportunities for both residential and commercial property investments. Here are some notable locations:

Birkdale – Popular with families and professionals, Birkdale offers access to good schools, parks, and excellent public transport. Properties here are in high demand for both buy-to-let and holiday rentals.

Ainsdale – Known for its beautiful beaches and nature reserves, Ainsdale attracts tourists and residents looking for scenic coastal living. This area is ideal for investors interested in both short-term holiday lets and long-term rental properties.

Southport Town Centre – As the town undergoes regeneration, the town centre offers a promising mix of residential and commercial properties. Investors can take advantage of rising property values and high rental demand from city professionals and young tenants.

Churchtown – Known for its historic charm and village atmosphere, Churchtown attracts families and retirees seeking a peaceful environment. The area features a mix of traditional cottages and modern homes, with proximity to the Botanic Gardens enhancing its appeal.

Kew –  A residential suburb offering a range of properties, Kew is popular among young professionals and families due to its access to local amenities, schools, and healthcare facilities. The area has seen recent developments, including newly built bungalows, indicating growth potential.

Lord Street – A historic boulevard known for its Victorian architecture, Lord Street hosts a variety of shops, cafes, and offices. Investing here can capitalize on the area’s established commercial presence and tourist footfall.

A View of Lord Street In Southport

Marshside – Located near the RSPB Marshside nature reserve, this area appeals to nature enthusiasts and those seeking a quieter lifestyle. The presence of natural attractions can be a unique selling point for potential tenants.

When considering investment in these areas, it’s essential to conduct thorough market research and assess factors such as property condition, tenant demand, and potential for capital appreciation. Engaging with local estate agents and property consultants can provide valuable insights tailored to your investment goals.

Residential Property Investments In Southport

Southport’s regeneration and quality of life factors make it highly attractive for residential buy-to-let investors. Families, young professionals, and retirees create a diverse rental market with stable demand. Areas like Birkdale and Kew offer an appealing mix of rental yield and potential for capital appreciation. Additionally, Southport’s appeal to city commuters expands the rental pool, providing year-round tenancy stability.

Commercial Property Investments in Southport

Commercial investment opportunities in Southport are abundant, especially in Southport Town Centre and Lord Street. These areas are ideal for retail, hospitality, and office spaces, especially with the expected boost in foot traffic as the events centre and other Southport regeneration projects come to fruition. The emphasis on improving public spaces and attracting tourism will likely benefit businesses catering to both locals and visitors, creating a supportive environment for commercial growth.

Benefits of Buy-to-Let Investments in Southport

Investing in buy-to-let properties in Southport can offer several unique advantages:

  • Strong Tenant Demand: With its appeal as both a commuter town and a family-friendly area, there is a consistent demand for rental properties.
  • Potential for Capital Growth: As regeneration projects improve Southport’s infrastructure, property values are anticipated to increase, providing investors with the potential for capital appreciation.
  • Flexible Rental Options: In addition to traditional tenancies, Southport’s popularity with tourists opens the door to short-term rentals for added flexibility and potentially higher rental income.

Purchasing a buy-to-let property in Southport offers several additional benefits. First, Southport’s stable rental market ensures a steady demand for properties, particularly from families, young professionals, and retirees drawn to its quality of life. The town’s ongoing regeneration projects are expected to increase property values, offering potential capital growth for investors.

Southport also boasts a strong tourist economy, providing investors with the flexibility to explore holiday lets or short-term rentals, which can yield higher rental income during peak seasons.

Additionally, Southport’s well-connected transport links to Liverpool and Manchester make it appealing for commuters, further increasing tenant demand. Southport’s relatively affordable property prices allow investors to enter the market with a lower upfront cost compared to nearby cities, enabling more accessible investment opportunities.

Chart of Southport House Price Averages

Image Courtesy of PlumPlot

The Prospect for Property Investors in Southport

By Graham Wilson, Director of Cultural Policy Research at RCCIL – As a seasoned observer of the UK property market and an advocate for strategic investments, I’m excited to share insights on why Southport deserves the attention of property investors. Known for its quintessential seaside charm, Southport is undergoing significant changes that are transforming it into a prime area for residential and commercial investment.

Let’s explore what makes Southport a promising prospect and how the regeneration projects and other factors are setting it up as a hotspot for property investors.

Southport’s Unique Investment Appeal: Factors Beyond Regeneration

While regeneration is a driving factor, several other attributes make Southport a unique and attractive investment option.

1. Competitive Property Prices and High Rental Demand

  • Southport offers relatively affordable property prices compared to nearby cities like Liverpool and Manchester. Investors find more favourable entry points here, with opportunities for capital growth as the town evolves.
  • The high demand for rentals, especially among families, retirees, and professionals, makes buy-to-let investments viable. Many residents are drawn to Southport’s peaceful lifestyle, good schools, and accessibility to major cities.

2. Tourism-Driven Short-Term Let Potential

  • Southport is a popular tourist destination, home to attractions such as the Southport Flower Show, scenic beaches, and world-renowned golf courses. This robust tourism industry supports short-term let opportunities, allowing investors to generate higher rental yields during peak tourist seasons.
  • The newly envisioned events centre at the waterfront will also support year-round tourism, creating a steady demand for short-term accommodation in addition to long-term rentals.

3. Strategic Location with Excellent Transport Links

  • Southport’s connectivity is a major asset, with regular train services to Liverpool, Manchester, and Preston, making it a convenient location for commuters. The town’s location allows residents to enjoy a quiet coastal lifestyle while maintaining easy access to larger city centres for work and leisure.
  • This connectivity broadens the tenant pool, attracting not only locals but also city professionals who prefer the affordability and charm of Southport.

4. Diverse Neighborhood Options for Investment

  • Birkdale Village and Churchtown are ideal for residential buy-to-let, attracting families and professionals due to their community atmosphere, quality schools, and local amenities.
  • Southport Town Centre offers great commercial opportunities, especially in retail and hospitality, as regeneration boosts foot traffic and local business growth.
  • The Lord Street Boulevard area provides a blend of residential and commercial appeal with Victorian architecture and an established retail presence, catering to a wide demographic.

5. Government Backing and Community Support

The support from both the government and the local community has been instrumental in Southport’s transformation. The Town Deal’s funding has not only ignited economic opportunities but also fostered a community-centred vision of growth and sustainability. This support contributes to a stable investment environment where property values are bolstered by long-term planning and community buy-in, offering greater security to investors. Read more on the LJMU Sefton Innovation resource.

Southport’s Ongoing Regeneration: The Foundation of Growth

The regeneration efforts in Southport represent a critical aspect of its appeal as an investment location. A notable example is the Southport Town Deal, a government-funded initiative that has received £37.5 million for revitalizing Southport’s town centre. This project aims to create new cultural spaces, improve transport connections, and redevelop underused areas to attract more visitors and new residents alike.

Among the key highlights of the regeneration:

  • New Waterfront Developments: Southport’s waterfront will be transformed to include a state-of-the-art events centre, enhancing its appeal as a year-round tourist destination. This development is projected to bring in an estimated 514,000 additional visitors each year, boosting both tourism and local businesses.
  • Improved Public Spaces: By revamping key public spaces, including Lord Street and the Marine Lake area, Southport is creating an attractive, pedestrian-friendly environment. These improvements not only increase the quality of life for residents but also contribute to rising property values.
  • Digital Infrastructure Upgrades: The regeneration plan includes enhancements to digital infrastructure, essential for attracting modern businesses and residents who value connectivity. This initiative is part of Southport’s push to establish itself as a forward-thinking, vibrant community.

These projects are already drawing attention from investors and are expected to generate long-term economic growth, creating a ripple effect in the property market.

Here is an image reflecting Southport’s regeneration in 2024, showcasing the revitalized waterfront, modernized infrastructure, and thriving town centre.

An example of what Southport might look after regeneration

Key Considerations When Investing in Southport

Investing in Southport offers exciting opportunities, but it’s important to approach these with strategic foresight:

Regulatory Changes: Stay informed about evolving property regulations, especially if you’re exploring short-term holiday lets. Compliance with licensing requirements and safety standards is essential.

Tenant Type: Consider the type of tenants you aim to attract. Young professionals, families, and retirees all have different needs, influencing the type of property and amenities required.

Property Management: Managing rental properties, especially for short-term rentals, can be time-intensive. Working with a reliable property management service can help you handle tenant turnover, maintenance, and legal compliance. We have also published a useful Buy-to- let in Liverpool guide as well as a Manchester Property Investment guide.

Timing: With many regeneration projects underway, investors who enter the market now may benefit from increasing property values as these projects reach completion.

Tenant Profile: Identifying the right tenant profile—whether tourists, families, or professionals—will help investors select properties and locations that meet tenant needs.

Compliance and Management: Like any investment, buy-to-let properties require diligent management and compliance with local rental regulations. RCCIL offers services to assist with these aspects, ensuring a smooth investment experience.

What is the Buy-to-Let Rental Market like in Southport

The rental market in Southport has experienced notable developments in 2024, reflecting broader trends observed across the UK.

Rental Prices and Demand – As of November 2024, the average monthly rent in Southport stands at £987, with a median rent of £900.

This positions Southport as a relatively affordable option compared to nearby cities like Liverpool and Manchester.

The demand for rental properties in Southport remains robust, driven by its coastal appeal, quality of life, and proximity to major urban centres. This sustained demand contributes to a competitive rental market, with properties often being let quickly. Learn more about the Legal aspects of renting out a property on the UK Government website.

Supply Dynamics – The supply of rental properties in Southport has seen modest improvements, aligning with national trends. However, availability remains constrained, with supply levels still below pre-pandemic averages. This limited supply, coupled with high demand, continues to exert upward pressure on rental prices.

Regional Trends – In the broader North West region, rental prices have reached new heights in Q3 2024, with average advertised rents outside London at £1,344 per month—a 5.2% increase from the previous year. While this growth rate is the slowest since 2021, it indicates a slight tempering of the rental market compared to the intense spikes in recent years.

Investment Potential

For property investors, Southport presents attractive opportunities due to its affordability, strong rental demand, and potential for capital growth. The town’s ongoing regeneration projects and strategic location enhance its appeal as a viable investment destination.

The rental market in Southport is characterized by strong demand and limited supply, leading to competitive rental prices. While affordability remains a concern, the town’s appeal and strategic initiatives continue to attract both tenants and investors.

RCCIL’s Investment Support Services

At RCCIL, we understand the complexities of property investment. Our experienced advisors offer tailored services to help you:

Identify Prime Investment Areas: We provide data-driven insights to highlight neighbourhoods with the best potential.

Evaluate Rental Yields and Growth Prospects: Our team analyzes market trends to help you understand the long-term potential of your investment.

Manage Legal and Regulatory Requirements: With extensive knowledge of UK property regulations, we assist with navigating compliance, ensuring that you can invest with confidence.

Optimize Buy-to-Let Portfolios: We advise on strategies to maximize rental income and capital appreciation, from tenant management to exploring financing options.

Pension Investment Reviews: We provide a comparison of Pension Investments Versus Property Investments –  Learn more with our best-performing pension fund guide.

Southport Regional Map

Southport – A Strategic Investment Choice

Southport presents an excellent prospect for property investors. From affordable property prices and strong rental demand to an extensive regeneration initiative supported by government funding, Southport’s property market is primed for growth.

At RCCIL, we are here to support your journey, providing in-depth advice tailored to Southport’s evolving market. Whether you’re exploring residential buy-to-let opportunities, considering a commercial venture, or seeking guidance on Southport’s rental market, our team is equipped to help you make well-informed decisions.

As Southport grows and evolves, now is the time to seize the investment opportunities emerging in this dynamic and revitalized town.