Table of Contents
Property Listing
- Liverpool
Deposit
.
Yield
Property Price
.
- 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 stand