Key Highlights

Big things are brewing in Liverpool. While the city has often gone overlooked and underappreciated, it is starting to see millions being pumped into the city centre to revitalise and regenerate.

So, why has Liverpool become an investment hotspot in recent years?

The city has been earmarked as a fantastic location for potential growth and investments. This is due to the rental yields which are often higher than the UK average and low house prices. Rental demand in the city is particularly high, owing to the number of students and young professionals who work and study in the city or commute from Liverpool to slightly further afield. 

Liverpool Investment And House Prices

It’s no secret that the UK’s south is home to some of the most expensive locations in the country.

According to Rightmove data, In the past year, the average price of properties in Liverpool stood at £215,115. Semi-detached homes dominated sales, commanding an average price of £235,385, while terraced properties fetched around £157,407, and flats sold for approximately £136,652. These figures indicate a stable market compared to the previous year, with prices showing a modest increase of 3% from the peak of £209,418 recorded in 2021.

Conversely, in the same period, the average price of properties in London was £704,002. The bulk of sales comprised flats, which sold at an average price of £546,763, while terraced properties sold for an average of £784,306 and semi-detached properties fetched £758,402. Property prices have remained steady, with an increase of 8% from the peak of £653,298 recorded in 2021. However, it is these high prices that have put a lot of investors off what might be an overtired market and have set their sights further up north.

This also means that rental yields are much higher in Liverpool than they are in London. The average gross rental yield across the whole of the United Kingdom is 7.03%, as of Q2 in 2024. The average London rental yield is 5.59%, with individual rates differing from neighbourhood to neighbourhood.

Liverpool, on the other hand, has a much higher average rental yield, which stands at 8.18%. Rental yields for the city centre currently stand at 12.27% for studios, 6.60% for one-bed apartments, and 7.20% for two-bedroom apartments. For the wider Liverpool metropolitan area, studios can generate rental yields of 13.91%. One-bed flats and two-bed flats can net 6.49% and 6.95%, respectively.

Liverpool: A City Of Culture

Millions of visitors are drawn to Liverpool each year for the wealth of culture and nightlife on offer. It is exactly for the same reasons that Liverpool is seeing a modest population growth, for both workers and students.

The city won the European Capital of Culture in 2008, which is an award and recognition given to vibrant and up-and-coming cities in Europe. Becoming a European Capital of Culture city can bring a lot of benefits to the community, as it can generate cultural, economic, and social benefits, even going as far as to generate urban regeneration. 

Since this accolade in 2008, Liverpool has seen millions pumped into its economy and more cultural events taking place. There are now plenty of things to see and do, and multiple regeneration and housing projects either recently completed or in the pipeline, with the Liverpool waterfront drastically changing over the last decade and change. It has become a number one destination for many visitors to the UK, owing to its rich history and culture.

Liverpool Investment And Beyond

The Liverpool investment schemes and the city’s affordability have made the area a popular location not with just those who are based in the city centre, but it has also become a commuter city. It is closely located in industrial powerhouses, Manchester and Birmingham, which are easily accessible via train and car. As such, it has become a firm favourite for people to live in while still maintaining access to jobs in other cities. Landlords can still benefit from high-quality professional renters while still enjoying high rental yields not found in other cities.

Where To Invest In Liverpool

Liverpool Docklands

The Liverpool city skyline is one of the most iconic in the UK. It is currently undergoing extreme transformation, with millions being pumped into the waterfront to attract visitors and residents, both old and new. Plans include thousands of new apartments, restaurants, bars, cafes, and the new Everton FC stadium which is scheduled to be completed in 2025. It is estimated that the stadium, based in Bramley-Moore docks, will generate over £240 million into the city’s economy upon opening. Its capacity is over 50,000 and it will bring countless more jobs into the city.

Liverpool Waters is a regeneration project aimed to revitalise and breathe new life into the city’s forgotten docklands. The project will extend along 2 kilometres of the city’s iconic waterline and is currently totalling an impressive £5.5 billion. It is set to be a mixed-use area, with a blend of residential and commercial areas. Currently, it is already home to some residential spaces, hotels, and commercial amenities. Other plans in the pipeline include over 315,000 sq.m. of office space, 53,000 sq.m. of hotel and conference facilities, a new cruise liner terminal, retail and leisure facilities, and parking.

L1 Postcode Area

While most accept that property in the south of the UK can receive higher capital growth, there is still a lot to be said for Liverpool. Liverpool’s L1 postcode area (i.e., the city centre and a coveted location) has seen a lot of exponential growth in just a few short years. Currently, the average price of a property in the L1 postcode is £150,000, ensuring that investors can still get a fantastic deal even as property values continue to rise.

Summary

North Property Group is an investment property agency and lettings agency, specialising in UK new build and buy to let Liverpool properties. We scour the country to secure the best deals with premium property development agencies to hand deliver the best UK property development deals to investors.

Not only do we do this, but we also provide an end-to-end lettings management service, taking care of the property’s tenancies and lifecycle. Book a free consultation with us today to begin investing in premium UK real estate development and UK off plan property.