Table of Contents
Property Listing
- Liverpool
Deposit
.
Yield
Property Price
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- Liverpool
Deposit
.
Yield
Property Price
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- Liverpool
Deposit
.
Yield
Property Price
.
Why is Liverpool a Good Option for Buy-to-Let Investment?
Lower Property Prices
Being an investor what’s the first things you will notice when exploring property investment in Liverpool?
It is how much more affordable it is compared to other major UK cities. The average property price in Liverpool is sitting comfortably around £200,465 as of early 2024.
Compare that to cities like London or Edinburgh. And it is easy to see why many property investors are flocking to this city. You could actually buy multiple properties in Liverpool for the cost of just one in the capital.
| CITY | AVERAGE PROPERTY PRICE |
|---|---|
| Liverpool | £200,465 |
| Manchester | £351,000 |
| London | £1,000,000 |
| Birmingham | £275,000 |
| Leeds | £300,000 |
| Bristol | £350,000 |
This is not just about snagging a cheaper property though. Liverpool property investment opportunities also come with the potential for excellent capital growth.
The ongoing regeneration projects across the city and a thriving local economy leads to the rise of property values. That’s what makes Liverpool a bit of a sweet spot – you get the best of both worlds: affordable property prices and promising future returns.
Source: Varbes
And let’s be real for a moment: If you’re looking to build a property portfolio on a modest budget, you’d be hard-pressed to find a better option than Liverpool city.
It’s simply one of the most accessible cities in the UK property market, especially for those just getting their feet wet in the world of property investments.
Growing Property Market
Liverpool’s got a massive student population, thanks to its three big universities: The University of Liverpool, Liverpool John Moores University, and Liverpool Hope University.
Altogether, these institutions bring in over 60,000 students each year, and guess what? About half of them rely on purpose-built student accommodation or private rentals. For anyone diving into property investment in Liverpool, that’s a gold mine of potential tenants.
Now, here’s where it gets interesting. Student property can deliver some of the best rental yields.
Why?
Students, especially international ones, are often looking for convenient and sometimes higher-end living spaces. This means if you’re investing in Liverpool city centre or near the Knowledge Quarter, you can charge competitive rent and often fill your properties quickly.
But it’s not just about squeezing multiple students into one property (although that’s a solid strategy too). Many students, especially those from overseas, are willing to pay for more luxurious rental properties.
That gives buy to let investors a chance to cater to a more premium market without necessarily breaking the bank on the initial investment.
Source: Office for National Statistics
UK Average:
- The number of active businesses in the UK on average is 5,693 enterprises. This value is represented by the first figure on the left.
Liverpool (a specific region within the UK):
- In Liverpool the number of active businesses is 17,120 enterprises. This is a much higher figure than the national average.
Trend Over Time:
- On the right side there is a small graph showing the trend over time.
- For Liverpool (shown with the blue line) the number of businesses increased from around 16,000 in 2017 to 17,120 in 2022.
- For the UK (shown with a purple line) the number has been relatively steady. It has remained around 5,000 over this period.
- The number of active businesses in Liverpool increased by 1,070 over this period.
Graph 2: This graph compares the number of high-growth businesses between the UK (Purple) and Liverpool (Blue) for the year 2022.
Source: Office for National Statistics
UK (Purple Data):
- The number of high growth businesses in the UK on average is 20 enterprises. This is represented by the purple figure on the left.
- The graph shows that the trend for the UK has remained relatively steady. There is little to no significant change from 2017 to 2022. The line remains flat. This indicates that the number of high growth businesses across the UK has been stagnant. It is around the 20-business mark over this period.
Liverpool (Blue Data):
- In Liverpool the number of high growth businesses is 95 enterprises. This is significantly higher than the national average.
- Over time (from 2017 to 2022) the number of high growth businesses in Liverpool has fluctuated. But overall has increased as seen in the upward trend on the blue line.
- There has been a net increase of 20 high growth businesses in Liverpool over this period. The number rising from around 75 in 2017 to 95 in 2022.
Key Observations:
- Liverpool has more than quadrupled the number of high growth businesses compared to the UK average.
- The number of high growth businesses in Liverpool has shown a clear growth trend. While the national average has remained stable.
Thousands of Students
Liverpool’s got a massive student population, thanks to its three big universities: The University of Liverpool, Liverpool John Moores University, and Liverpool Hope University.
Altogether, these institutions bring in over 60,000 students each year, and guess what? About half of them rely on purpose-built student accommodation or private rentals. For anyone diving into property investment in Liverpool, that’s a gold mine of potential tenants.
Now, here’s where it gets interesting. Student property can deliver some of the best rental yields.
Why?
Students, especially international ones, are often looking for convenient and sometimes higher-end living spaces. This means if you’re investing in Liverpool city centre or near the Knowledge Quarter, you can charge competitive rent and often fill your properties quickly.
But it’s not just about squeezing multiple students into one property (although that’s a solid strategy too). Many students, especially those from overseas, are willing to pay for more luxurious rental properties.
That gives buy to let investors a chance to cater to a more premium market without necessarily breaking the bank on the initial investment.
Young Professionals
If you are investing in Liverpool properties then you need to know another major tenant demographic. That is the city’s growing population of young professionals.
Over the past couple of decades the number of people in their 20s and 30s moving to Liverpool has shot up. Especially in the city centre. Part of the reason for this is the city’s affordability.
London’s property market pricing out many young workers. Liverpool has become an attractive alternative.
But it is not just about affordability. Liverpool has a thriving job market. Particularly in sectors like tech plus health and finance. Its excellent transport links make commuting a breeze. This includes the famous Liverpool Lime Street Station.
For property investors this means a steady stream of potential tenants who are looking for high-quality housing close to the action.
What is great about young professionals as tenants is that they often stay for the long haul. This means renting for several years while they save for a deposit.
They are also willing to pay more for the right location and a modern comfortable space. If you have got investment properties in Liverpool’s city centre then you are in a prime position. This will attract the group of tenants. And you can enjoy solid reliable rental income.
Booming Tourism (As an Aside)
Okay, maybe you’ve heard this already, but it’s worth mentioning: Liverpool is one of the most visited cities in the UK. Now, while this isn’t a focus for most buy to let investors, it can’t be ignored that this popularity opens up a different kind of opportunity.
With places like Liverpool Football Club drawing in people year-round, and a nightlife scene that’s pretty unbeatable, there’s a chance to cash in on short-term lets.
Now, not every investor wants to deal with the ins and outs of short-term lets, but it’s definitely something to consider, especially in high-demand areas like the city’s northern docks. Properties here can offer incredible yields.
Headline figures:
- Liverpool City Region tourism value has increased 21% from 2022 to £6.25bn.
- Visitor numbers have increased by 4.4 million from 2022 to 60.29m.
- The number of staying visitors has risen to 6.016m (compared to 5.833m in 2022)
- The number of day visitors continues to rise and now stands at 54.28m – an increase of over 4 million visitors from 2022.
- Jobs in the sector have risen to 58,435 a 13% increase since the 2022 figure of 51,605
- Other figures show hotel occupancy rates from 2022 rose 2.2% to 76.5% in 2023, almost level with the 2019 figure of 78.4%.
High Rental Yields
The holy grail of buy-to-let properties have high rental yields. Liverpool has consistently ranked among the top cities in the UK for rental yields. This is largely due to a combination of lower property prices and high rental demand.
This is driven by both students and young professionals.
In fact some areas in the Liverpool property market can offer yields as high as 7.8%.
This is pretty impressive compared to many other cities If you are looking to maximise returns on your investment property then Liverpool buy to let options are certainly worth a closer look.
| CITY | AVERAGE PROPERTY PRICE |
|---|---|
| L4 | 7.80% |
| L5 | 6.70% |
| L13 | 6.90% |
| L20 | 7.50% |
| L1 | 5.80% |
| L6 | 5.50% |
| L8 | 6.20% |
| CH41 | 6.60% |
| L9 | 6.70% |
| CH44 | 4.70% |
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Best Areas To Invest In Buy To Let Properties in Liverpool
Liverpool City Centre
Investing in Liverpool City Centre offers tremendous potential for both short-term and long-term growth. The area is a vibrant hub that attracts young professionals plus students and commuters alike.
This creates consistent rental demand. With ongoing regeneration projects the landscape of Liverpool’s city centre is evolving rapidly. This makes it a prime location for property investment.
For those focused on buy to let in Liverpool the city centre provides an appealing mix of affordable investment properties and high rental yields. Properties close to Liverpool Lime Street Station are particularly attractive.
This location ensures ease of commuting. Thus further driving tenant interest. Liverpool property prices still lower than in many other major UK cities. So now is an ideal time to get involved before the market becomes more saturated.
The Liverpool property investment opportunities here are diverse. It ranges from modern flats to more traditional properties. These are all within walking distance of shops plus restaurants and cultural venues.
This variety appeals to a broad tenant base. Thus increasing the chances of maintaining high occupancy rates. Furthermore the average property prices in the city centre are rising steadily. This is promising for future capital appreciation.
When investing in Liverpool property it is essential to consider the long-term value. The centre is benefiting from numerous investment opportunities tied to regeneration efforts.
These are projected to boost property values significantly over time. For property investors looking to start or expand a property portfolio Liverpool city centre stands out. Because it is a high-potential area with an upward trajectory in the Liverpool property market.
As per Rightmove the average house price here is £179,884
The Georgian Quarter
The Georgian Quarter is one of the most charming and architecturally rich areas of Liverpool. It is easy to see why it is such a desirable location for property investors.
Known for its stunning Georgian terraces and close proximity to Liverpool’s city centre. The quarter is a standout for property investment. It is not only a beautiful place to live.
But also a strategic choice for long term returns.
Property prices in the Georgian Quarter are higher compared to other areas in the city. But they reflect the area’s exclusivity and historical significance. The rental yields remain strong, particularly with demand from students attending Liverpool John Moores University and professionals working in the city.
The quarter’s mix of culture and convenience makes it a magnet for those seeking a blend of history and modern amenities, ensuring steady rental demand.
Liverpool property investment in this area offers the chance for significant capital growth. The area continues to maintain its reputation as one of the city’s most sought-after neighbourhoods. Its prime location and consistent demand. It is an excellent choice for those looking to expand their investment property holdings.
As per Rightmove the average house price here is £348,406
Sefton Park / Lark Lane
Sefton Park and Lark Lane are ideal for those looking for a balance of green space and urban charm. The area is particularly appealing to property investors.
Particularly looking to tap into a growing part of Liverpool city with a unique atmosphere. Sefton Park is one of Liverpool’s largest parks. This makes the properties around it attractive to those who value outdoor space.
Lark Lane is known for its independent shops with cafes and restaurants. This gives it a bohemian feel.
The Liverpool property prices around Sefton Park and Lark Lane are more affordable than in central areas. This includes areas like the Georgian Quarter.
Yet they offer excellent potential for capital appreciation. This makes the area a fantastic option for those seeking property investment in Liverpool that balances cost with return potential. The demand for rental properties remains strong, particularly among creatives and professionals, which contributes to solid rental yields.
The investment opportunities here are diverse, from Victorian houses to modern apartments, all offering a good return in an area that’s popular but still relatively affordable compared to other major UK cities. If you are looking to invest in Liverpool, Sefton Park and Lark Lane are worth serious consideration.
As per Rightmove the average house price in Sefton Park is £244,907
As per Rightmove the average house price in Lark Lane is £169,950
Anfield and North Liverpool
Anfield and North Liverpool are areas that have seen massive changes in recent years. All thanks to ongoing regeneration projects. Once overlooked these areas are now prime spots for those looking at Liverpool property investment opportunities.
With the extensive redevelopment around Liverpool Football Club now Anfield has become a hotspot. Especially for buy to let Liverpool investors. The property prices in the area are still some of the most affordable in the city. But with rising demand and improving infrastructure there is potential for significant capital growth.
In North Liverpool regeneration has also brought about new investment opportunities. This holds affordable buy to let properties that are perfect for building a property portfolio.
The area is gaining attention from property investors. Particularly those who are looking for properties that offer both short-term rental yields and long-term appreciation.
Here there is a combination of rising property values with improving amenities and ongoing investment in the area of Anfield and North Liverpool.
This present solid opportunities for anyone seeking to invest in Liverpool. The future looks bright for these areas. This makes them great for both entry-level and seasoned buy to let property investors.
As per Rightmove the average house price in Anfield is £113,506
The Baltic Triangle
If there is one area that has transformed beyond recognition it is the Baltic Triangle. What was once a largely industrial part of Liverpool city is now a creative hotspot.
It is filled with bars plus galleries and independent businesses. This makes it an ideal area for property investment. Particularly for those targeting young professionals.
The property prices in the Baltic Triangle remain competitive, but the area’s popularity has led to rising rental yields and increasing property values.
The continued investment in the area has also created more property investment opportunities, from modern flats to innovative new developments, making it a strong contender for anyone looking to invest in Liverpool.
The Baltic Triangle’s unique blend of culture and opportunity means it attracts a lot of attention from renters, keeping rental demand high. It’s a place that thrives on creativity and is perfect for those who want to add a trendy, urban vibe to their property portfolio. If you are considering Liverpool property investment then the Baltic Triangle is one to watch.
As per Zoopla the average house price here is £275,000
Woolton
Woolton offers a village like atmosphere with all the benefits of living in Liverpool city. The area is known for its leafy streets and historic sites. It is also well known for slightly higher property prices.
But it is these qualities that make it a stable option for property investment. Woolton is a popular choice for those seeking quiet, suburban living, yet it’s still well-connected to the city centre.
The Liverpool property market in Woolton has shown steady growth over the years, making it a solid choice for long-term investment properties. The demand for housing here remains strong, contributing to consistent rental yields.
It’s a desirable area that offers a mix of older, characterful homes and newer developments, making it suitable for a range of property investors.
For anyone looking to invest in Liverpool, Woolton is an excellent option, particularly for those looking for stable, long-term investments with the potential for steady capital appreciation.
As per Rightmove the average house price here is £313,143
FAQs for Buy-to-Let Properties in Liverpool
If you’re planning to rent out a property in Liverpool, there are several legal requirements to keep in mind. Properties with five or more tenants who aren’t from the same family will need an HMO (House in Multiple Occupation) licence.
This ensures the property meets the necessary standards. This includes safety measures like smoke alarms plus fire exits and proper living conditions.
Liverpool also has a city-wide Selective Licensing Scheme. This means many rental properties must be registered with the council. Be sure to check if the property you are investing in is affected by this.
Additionally, you’ll need to follow essential safety regulations, such as having a current gas safety certificate and a valid Energy Performance Certificate (EPC).
Yes, student accommodation can be a smart investment strategy in Liverpool. With major universities like the University of Liverpool, Liverpool John Moores, and Liverpool Hope, there’s always high demand for student housing.
Areas like Kensington, Wavertree, and Smithdown Road are popular among students because they’re close to campus and well-served by public transport.
However keep in mind that student tenants often move out after a year or two. So you will need to stay on top of maintenance and be prepared to find new tenants regularly. Fortunately with the high number of students arriving each year finding tenants is usually not a challenge.
Where your property is located in Liverpool will affect your rental returns. Properties in the city centre can offer high yields.
Typically around 5-7%. All thanks to the demand from young professionals and students. This demand is also driven by those wanting to live close to major attractions.
Areas such as the Baltic Triangle with Ropewalks and the Georgian Quarter are particularly popular. They command higher rental prices.
In the suburbs yields tend to be lower. It stands around 3-5%. This includes areas such as Aigburth plus Woolton or Allerton. But these areas attract long-term renters who are more likely to stay for several years. This provides more stability.
And it reduces the need to find new tenants frequently.
Both city centre and suburban properties offer their advantages. If you prefer higher rental income then the city centre is a great option. If long-term tenancy and stable growth are more appealing then suburban investments is better.
Conclusion
It is hard to ignore how much the city has going for it. For starters property prices here are so much more affordable than in other major UK cities. While places like London are skyrocketing Liverpool’s property market still offers a lot of value.
Especially if you are building a property portfolio or just getting started with property investments. The average property price in Liverpool is around £206,567. This is pretty tempting compared to the eye-watering numbers elsewhere.
Plus the potential for capital growth is impressive. With the city constantly evolving thanks to regeneration projects there is no shortage of property investment opportunities.
This includes Knowledge Quarter and Liverpool city centre. These regeneration efforts are transforming the city. And making investment properties in Liverpool even more attractive over time.
Liverpool’s city centre is a hotspot for both rental properties and capital appreciation. There is strong rental demand. Especially from young professionals moving to the area for work.
Liverpool Lime Street Station offers great transport links, making it ideal for commuters, which also drives tenant demand. Rental yields are high, and properties close to the city centre can offer fantastic returns.
And let’s not forget about the students. Liverpool John Moores University and other institutions drawing in over 60,000 students each year. Student property is a goldmine here.
Purpose-built student accommodation is always in demand. This offers an excellent rental yield for buy-to-let investors.
What really sets Liverpool apart is the balance between affordable property prices and strong rental yields. Some areas of Liverpool offer rental yields as high as 8%.
This is rare in the UK property market. If you are looking at Liverpool property investment then you are likely to find better returns. Liverpool buy-to-let investors are in a sweet spot. The affordable properties and a growing tenant pool make long-term rental income a strong possibility.
But it is not all just about rental income. The property values in Liverpool are rising. All thanks to a combination of high demand and ongoing regeneration. The north Liverpool district has seen significant changes.
Areas like Anfield benefiting from large-scale development around Liverpool Football Club. For those interested in the long game capital appreciation in these areas is definitely on the cards.
If you are keen on residential property investment then Liverpool should be on your radar. The city offers some of the best buy-to-let opportunities in the north west.
The house prices are still within reach but showing strong growth potential. You can look for a student market with young professionals or just hoping to tap into the rising property values. Liverpool’s a smart choice.
The high rental yields and affordable buy-to-let properties mean you can expect steady returns.
In short Liverpool is a city full of promise for property investors. It has the affordability with the rental demand and the potential for serious capital growth. Now is the time to invest in Liverpool property while the market is still climbing.
Area Guide
Tom Collins
I’m your go-to broker, on a mission to make things simple and smooth when making your investment with me! My journey at Flambard Williams has been shaped by working in various financial fields and working closely with clients and their goals.
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