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Key Overview of Liverpool's Housing Market
When it comes to investing in Liverpool’s housing market then there is a lot to keep in mind. Recently the market has been relatively strong. Especially for those of you looking at long-term investment opportunities.
Liverpool’s prices by property type have seen steady growth over the past few years. Followed by more investors eyeing the city. This is due to its potential to generate passive income and capital appreciation.
However events like Brexit and rising inflation have had their effects. Brexit brought a level of uncertainty to the property investment landscape. But Liverpool has proven resilient.
And in some ways it has created opportunities for those ready to make smart decisions. The real estate market here has remained appealing. Especially for buy-to-let investors.
This is due to the high rental yields compared to other parts of the UK. But we have also noticed that rising interest rates and inflation are putting pressure on affordability. So it is crucial to do the maths carefully before diving in.
Sources: https://www.ons.gov.uk/visualisations/hou singpriceslocal/E08000012/
Liverpool remains a hotspot for property investment. Particularly when you are considering its overall affordability. That too compared to cities like Manchester or London.
For those looking to build a portfolio this market is worth serious consideration. But staying informed on current trends is essential to success.
Liverpool’s Average House Price
Liverpool’s property market has been one of the most interesting to watch over the years. Especially for those of you looking at it from an investment angle. Liverpool has a lot to offer.
Whether you are aiming for passive income plus building a robust portfolio or planning for retirement. One of the most appealing aspects of this city is its relative affordability compared to other parts of the UK. Especially when you look at the nominal prices of house.
According to the Office for National Statistics,
As of July 2024 the average property price in Liverpool is around £179,000. This figure is quite attractive. Particularly when compared to the broader North West and Britain. In the North West the nominal prices are averaging £220,000.
And in Great Britain it stands at £292,000. What does this mean for property investors?
This means Liverpool offers strong potential for capital appreciation. That too without the same level of upfront investment required in other regions.
Liverpool’s housing market has been quite resilient.
There were times when other regions of the UK may have seen more dramatic fluctuations. But at that time too Liverpool tends to remain relatively stable.
And let us be honest. Stability is something we all appreciate in an investment. It is not the flashiest of markets. But it offers that slow and steady growth that builds wealth over time.
Property Type Impact on House Price Variations in Liverpool
The type of property significantly impacts median price variations. As of July 2024 the detached terraced properties in Liverpool came in at an average of £349,000. This makes them the most expensive option for investors.
Semi-detached properties tend to offer a balance between space and affordability. They have an average of £220,000. Terraced properties are often seen as a great entry point for investors.
They have an average price of £158,000. Meanwhile, flats and maisonettes remained the most affordable option. They hold an average price of £134,000.
Each property type offers its own set of advantages. These depend on your investment goals. Detached homes may provide more significant capital appreciation over the long term.
While flats can be more accessible for those looking to build a portfolio with passive income in mind. Therefore research the area thoroughly. Because just a few streets can make a big difference in median price and potential return.
Trendy House Prices In Neighbouring Areas
Area | Average value | 1YR Change | 10YR Change |
---|---|---|---|
Aigburth | £259,000 | + 1.6% | + 56.0% |
Aintree | £233,000 | - 1.7% | + 60.7% |
Allerton | £247,000 | - 1.6% | + 59.4% |
Anfield | £114,000 | + 0.0% | + 75.4% |
Brighton Le Sands | £233,000 | - 1.3% | + 60.7% |
Central Liverpool | £167,000 | - 0.6% | + 50.5% |
Childwall | £293,000 | - 1.7% | + 60.1% |
Crosby | £299,000 | - 1.3% | + 59.0% |
Edge Hill | £126,000 | + 0.8% | + 63.6% |
Fairfield | £110,000 | + 1.9% | + 59.4% |
Fazakerley | £140,000 | + 0.0% | + 62.8% |
Formby | £351,000 | + 0.0% | + 59.5% |
Garston | £138,000 | + 0.7% | + 53.3% |
Hale Village | £281,000 | - 1.1% | + 59.7% |
Halewood | £234,000 | - 0.8% | + 60.3% |
Hightown | £342,000 | + 2.1% | + 60.6% |
Hunts Cross | £233,000 | + 0.4% | + 60.7% |
Huyton | £198,000 | - 1.0% | + 59.7% |
Kensington | £157,000 | + 1.9% | + 65.3% |
Kirkby | £181,000 | - 0.5% | + 60.2% |
Knotty Ash | £172,000 | - 1.7% | + 59.3% |
Litherland | £163,000 | - 0.6% | + 59.8% |
Lydiate | £258,000 | - 1.5% | + 60.2% |
Maghull | £249,000 | - 1.2% | + 59.6% |
Melling | £250,000 | + 0.0% | + 60.3% |
Mossley Hill | £296,000 | + 0.0% | + 60.9% |
Old Swan | £147,000 | - 0.7% | + 61.5% |
Seaforth | £129,000 | - 0.8% | + 55.4% |
Sefton Park | £272,000 | - 1.8% | + 48.6% |
Speke | £145,000 | + 0.0% | + 49.5% |
Thornton | £301,000 | - 2.0% | + 60.1% |
Toxteth | £99,000 | - 2.0% | + 37.5% |
Tuebrook | £120,000 | + 0.8% | + 62.2% |
Walton | £125,000 | + 0.0% | + 64.5% |
Waterloo | £218,000 | + 0.5% | + 62.7% |
Wavertree | £174,000 | + 0.6% | + 48.7% |
West Derby | £197,000 | + 0.0% | + 60.2% |
Woolton | £315,000 | - 1.3% | + 59.9% |
Total | £180,000 | - 0.6% | + 52.5% |
Popular Property Types in Liverpool
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Private Rental Prices Continue to Climb in Liverpool
It is no secret that Liverpool’s private rental market has been heating up. Over the last year alone, we have seen average rents jump to £793 as of September 2024.
This is an 8.2% increase from where they were in September 2023. Now this is not just a local trend. It is something we are seeing across the North West. These are the areas where rental nominal house prices have climbed even more sharply by 9.3%.
But what does this mean for property investors?
If you are looking to build a rental portfolio in Liverpool then you must have noticed that certain property types and sizes are driving this growth. For example, rents for one-bedroom properties have seen a significant 9.0% increase.
That means rising its value to £593. This could be great news if you’re focused on smaller units, as demand for these tends to stay strong, especially with renters who want more affordable options.
On the other hand, four-bedroom properties—while rising by a lower percentage of 6.4%—still command a hefty £1,137 per month. This might appeal more to those looking for larger, high-yield opportunities, even though the growth is slower compared to smaller units.
And, of course, property type matters. Flats and maisonettes, for instance, are averaging £683, while detached properties are fetching around £1,081.
Interestingly, even though detached homes have a higher rent, the increase hasn’t been as steep as in flats or maisonettes. It’s a detail worth thinking about when planning future purchases.
Whether it’s a one-bed flat or a semi-detached house, these rising rents clearly point to a city where property investment still offers solid returns. The market might be getting pricier, but for those who plan smartly, Liverpool remains a fantastic place to build long-term passive income and capital growth.
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Is Investing in Liverpool City Centre Property a Wise Move?
Liverpool’s Economic Prospects
Liverpool’s economic outlook over the next few years is exceptionally promising. Particularly when compared to the wider North West region. Forecasts suggest that Liverpool will outpace its regional counterparts.
This will come with an average Gross Value Added (GVA) growth of 2.8% annually until 2025. Just edging out the North West’s overall projection of 2.7%.
This difference might seem small at first glance. But it speaks volumes about Liverpool’s underlying economic strengths and the momentum the city has built over recent years.
One of the key drivers of this growth is the diversity and robustness of Liverpool’s key sectors. Areas like property, accommodation, and food services are thriving, and so are essential industries like human health, social work, and professional fields such as science and technology.
These industries have contributed to Liverpool’s recovery from the pandemic. And also have set a solid foundation for long-term economic expansion. It is particularly notable that in 2022 Liverpool saw the creation of 6,000 new jobs.
It was coupled with a 6% GVA growth. This signals more than just a rebound. It suggests a city that is primed to accelerate its economic progress.
In contrast, the broader North West has struggled to bounce back at the same pace.
By the end of 2021 the region’s GVA had only recovered to 96.1% of its pre-pandemic size. And lagging behind the UK’s overall recovery.
Many of the North West’s towns—aside from more dynamic hubs like Warrington and Chorley—are expected to underperform in terms of GVA growth when compared to Liverpool and Manchester.
The resilience and strength of Liverpool’s city-focused sectors give it a clear edge, reinforcing its position as a standout in the region.
Liverpool’s advantage becomes even more apparent when you consider the challenges facing the North West’s hospitality and services sectors, which have been slower to recover.
These struggles have underscored the growing disparity, particularly between Liverpool and the more rural or smaller towns in the region. While cities like Liverpool are pulling ahead thanks to their strong sectoral foundations, less urbanised areas are being left behind.
The take-home point here is that Liverpool’s economic prospects are not just about post-pandemic recovery; they’re about sustained, strategic growth driven by a combination of diverse industries and robust job creation.
For investors this spells opportunity. A growing economy typically leads to rising demand for housing and rentals. This makes property investment in Liverpool an attractive proposition.
Especially when you look at the broader context of the North West. As the city continues to pull ahead its real estate market is expected to follow suit. This presents a fertile ground for those looking to invest for both passive income and long-term capital appreciation.
Housing Supply and Demand in Liverpool
One of the major draws of investing in Liverpool is the consistent demand for housing. Especially in the city centre. Liverpool’s population continues to grow.
There is always a strong pool of potential tenants. Particularly young professionals looking to live close to where they work. The buy-to-let Liverpool market has benefited immensely from this trend, with rental yields often outpacing the UK average.
Supply, on the other hand, hasn’t always kept pace with demand. We’ve noticed that the limited new developments in key areas mean competition for well-located properties can drive both rent and price of property up.
This imbalance between housing supply and demand gives investors a real opportunity to secure high returns, especially if you’re focusing on the right locations within the city centre.
How Government Policies and Incentives Influence Prices
Government policies play a major role in shaping the Liverpool real estate market, particularly for investors. For example, stamp duty incentives have historically influenced when and where you choose to invest.
These policies can create windows of opportunity where Liverpool real house prices remain competitive before they’re adjusted back upwards.
There are also certain tax breaks and relief schemes for property investors that can make a big difference. When the government introduced the Help to Buy scheme, it pushed up demand for new builds, which indirectly impacted the resale market.
It’s worth keeping an eye on any new policies that might affect buy-to-let strategies, especially in a city like Liverpool, where investment potential can fluctuate with these government-led shifts.
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Impact of New Infrastructure Projects in Liverpool
Liverpool is undergoing a remarkable transformation, and its infrastructure projects are playing a central role in reshaping the city’s landscape, economy, and investment potential.
For property investors, these large-scale developments aren’t just exciting— they’re directly impacting Liverpool’s real estate market by driving demand, improving connectivity, and elevating the city’s profile as a major hub for growth.
Let’s take a closer look at some of the standout projects that are setting the stage for Liverpool’s future and why they matter to anyone considering property investment in Liverpool.
Liverpool Waters
The Liverpool Waters project is one of the most ambitious urban regeneration schemes in the UK, with a staggering £5 billion investment aimed at transforming the northern docks into a vibrant mixed-use area. This waterfront regeneration will introduce residential, and leisure spaces, giving a massive boost to the city’s appeal.
The scale of this project cannot be understated—it will revitalise 60 hectares of land along the River Mersey, creating an entirely new city district. For investors, the ripple effect of this project will likely raise Liverpool house prices in the surrounding areas as demand for properties near such high-profile developments typically surges.
What’s particularly exciting about Liverpool Waters is the emphasis on creating a balanced urban environment. This isn’t just about constructing buildings; it’s about creating a sustainable, attractive community with waterfront views, parks, and public spaces like the 4.7-acre Central Park, also part of this development.
Spaces like these make city living more desirable. Further enhancing the rental potential for buy-to-let investors who are eyeing the city centre.
Mersey Tidal Power Project
A £6 billion project the Mersey Tidal Power Project is focused on generating clean energy. It is also set to boost the city’s infrastructure in ways that directly impact investors.
The project will create a cycling and pedestrian route across the Mersey. This will significantly improve connectivity in the area. Infrastructure projects like this tend to increase property values.
As they make living in the city more convenient and eco-friendly, drawing in both renters who prioritise sustainability.
The energy produced by the tidal project will also contribute to the city’s green credentials. This has positioned Liverpool as a forward-thinking city committed to renewable energy.
New Everton Stadium at Bramley Moore Dock
This is another highlight in Liverpool’s infrastructure boom. This £500 million project is set to create a 47-metre high stadium. Breathing new life into the area and attracting significant foot traffic.
Sports infrastructure often has a knock-on effect on local property markets. And you can expect the same here. Investors should keep an eye on the surrounding areas. They tend to develop more restaurants and residential developments.
For property investors the benefits of being near a major landmark like this are clear. That is, rental demand is likely to spike. Particularly for short-term lets or apartments catering to fans and sports professionals. The stadium will also be a part of the larger Liverpool Waters scheme.
Mayoral Enterprise and Development Zones
This project has been instrumental in driving business growth and regeneration. Especially in areas like North Liverpool and the Central Business District. Since 2012 these zones have seen around £2 billion in investment.
This would encourage businesses to set up shop and boost job creation. For property investors these zones are golden opportunities. Increased business activity in these areas means more professionals looking for housing close to work.
The knock-on effect of these zones can also be seen in Liverpool house prices. This tends to rise as businesses move in and the local economy strengthens.
These zones are an ideal target for those looking to invest in buy-to-let Liverpool properties. This is because they are prime locations for growth. That is particularly true for the city’s professional sectors.
Life Science Investment Zone
Liverpool is also carving out a niche in the life sciences sector. This comes with an £800 million Life Science Investment Zone. This project focuses on digital health plus therapeutics and medical research.
This zone is more than just a centre of innovation. It is a powerful magnet for skilled professionals. With an influx of workers in these specialised fields, there’s a clear opportunity for property investment in Liverpool. Areas surrounding the investment zone are expected to see rising demand for high-quality housing.
Freeport Status
Liverpool’s Freeport status represents another boost for the local economy. A £45 million investment is set to turn Liverpool into a Freeport. This offers significant tax plus customs and regulatory benefits to businesses.
This initiative will likely draw more companies to the area, creating jobs and fostering economic growth. Freeport areas tend to become hotspots for residential development. This can push up property prices and rental yields as the demand for housing near these economic hubs increases.
Forecasting Liverpool House Prices for 2025
When thinking about Liverpool house prices in 2025 then there is a lot to get excited about as an investor. The market here has been consistently growing. And if trends continue then you can look at significant appreciation.
Projections suggest the average house price in Liverpool could hit around £218,689 by 2025. That is based on a steady 4.4% annual growth rate. This is a healthy rate of return for any long-term property investor.
Liverpool has been a bit of a star in the UK’s real estate market lately, especially when compared to pricier areas like London or the South East. For those of you focusing on capital appreciation, this is good news.
A 28.8% increase in house prices is predicted by 2025, which is the highest growth forecast in the UK. This sort of growth doesn’t happen by accident—Liverpool’s mix of regeneration projects, improved infrastructure, and a thriving rental market all contribute to the city’s appeal.
But as always, it’s important to keep a balanced perspective. No market grows in a straight line, and we’ll likely see small fluctuations.
The key takeaway is that Liverpool’s fundamentals remain strong, making it a smart location for those of you looking to build a portfolio that balances rental income with long-term annual price growth.
Liverpool’s Property Market Predictions for 2025
If you zoom out to look at the broader picture of Liverpool’s property market in 2025, it’s clear we’re heading into an interesting phase. Economically, the UK is predicted to stabilise, and with that, interest rates might dip slightly—from 5.25% to 5%.
Now, while a small drop, it could make a significant difference for those who are financing property investments. Lower interest rates mean better mortgage deals, making it easier to manage average costs while still benefiting from the rising value of Liverpool real estate.
One thing that often comes up when talking about property investment in cities like Liverpool is how these regional markets compare to London or the South East.
While those areas might get the headlines, Northern cities like Liverpool are forecasted to outperform them. It’s a refreshing reminder that you don’t always need to focus on the most talked-about areas to find real investment value.
In fact, you often find better opportunities where others aren’t looking as closely.
For those looking to build up a buy-to-let portfolio, this is promising. It’s about finding that sweet spot where prices are still relatively accessible, but the growth potential is real. Liverpool ticks all those boxes.
Projected House Prices in Liverpool for 2025
Now, when it comes to predicting Liverpool house prices specifically in 2025, you have some solid indicators to work with.
After what looks to be a slight dip in prices during 2024, house prices are expected to bounce back with a 3.5% increase. For seasoned investors, these little dips are nothing to be concerned about—they can even present great buying opportunities.
One of the main drivers behind this growth is supply and demand. There simply aren’t enough homes being built to keep up with demand, and that’s especially true in Liverpool’s real estate market.
A shortage of supply tends to push prices up, making properties more valuable. For those of you already holding assets in the city, this is exactly what you want to see: a consistent upward trajectory over time.
When investing for capital appreciation over a long period, these kinds of market dynamics play to our advantage. It is not about short-term gains. But looking ahead and positioning yourselves for steady growth. Liverpool is well-positioned to deliver on this front.
Angel Gardens
Angel Gardens is located in an up-and-coming district of Liverpool. It is in close proximity to two major regeneration projects: the £150 million Project Jennifer and the £5.1 billion Liverpool Waters scheme.
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What to Expect from Liverpool’s Rental Market in 2025
The Liverpool rental market has long been one of the city’s strongest selling points for property investors. And by 2025 that is not expected to change. One thing you can count on is strong rental demand.
As homeownership becomes less attainable for many. Particularly with interest rates remaining relatively high. Therefore more people will continue to rent. This keeps rental properties in high demand.
And then there are the rental yields. If you are targeting buy-to-let properties in Liverpool then it is comforting to know that yields here are expected to remain attractive. Hovering around the 6-7% mark.
That is a solid return. Especially when compared to other parts of the UK where yields are often lower. This steady income stream can be a vital part of your strategy.
Of course the rental market is competitive. But with the right property in the right location securing tenants should not be too difficult. It’s about understanding the needs of renters in Liverpool and making sure the properties you invest in meet those needs.
All in all, Liverpool continues to be a promising market for those of you looking to build long-term wealth through property.
Conclusion
When it comes to property investment in Liverpool, there’s no denying the city’s potential for long-term gains.
House prices in Liverpool have shown steady growth over the years, and while they might not be skyrocketing, that’s actually a good thing for you as investors.
It means there’s still room for capital appreciation without the risk of an overheated market. Buy-to-let opportunities here are strong too, with rental yields that outpace many other parts of the UK.
It’s worth keeping an eye on the Liverpool real estate market, especially as regeneration projects continue to enhance the city’s appeal for passive income generation and portfolio building.
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.