Is Liverpool a Good Place for Property Investment?
Liverpool is one of the UK’s most established regional property investment markets, offering comparatively affordable prices, strong rental demand and ongoing regeneration. One of the facts which will certainly catch the attention of many a property investor is that Liverpool has continued to attract investors looking beyond London for stronger affordability and competitive rental yields.
Now let’s take a look at why Liverpool is a good place to invest in property.
- Rental Yields– As one of the most important elements every investor should pay attention to, Liverpool rental yields sure don’t disappoint. Rental yields in Liverpool can vary significantly by postcode, with some areas offering particularly strong returns for buy-to-let investors. Explore the best Liverpool postcodes for property investment.
- Rental Demand– With ongoing investments and Liverpool’s economic growth over the recent years, this vibrant city has experienced an influx of both young professionals and students looking to rent out quality accommodation. Liverpool can boast a student population of over 70.000 and a thriving business scene. This creates sustained rental demand across Liverpool, particularly for well-located student and young-professional accommodation.
- Property Affordability– Liverpool remains one of the UK’s more affordable major-city property markets, making it accessible to a wider range of investors. According to the latest figures from Rightmove, Liverpool properties have an average price of £208,370. With Liverpool property prices sitting below the UK’s average, and predictions from Savills suggesting Liverpool is set to become the property market leader in the country, it’s easy to see why this Northern city is such a catch.
- Property Price Growth– house price growth is one of the most, if not the most important measurement to follow when considering where to invest in property. Liverpool house prices, along with property demand will continue to grow thanks to the ongoing regeneration projects.
- Tourist Hot Spot– With plenty of galleries, museums, an iconic waterfront, legendary nightlife, and so much more Liverpool offers plenty to see and do. Having said that, Liverpool attracts both tourists and locals which in turn boosts the local economy.
What Can Investors Expect from Liverpool Property Investment?
If you’re wondering if an investment property for sale in Liverpool is a good idea now, here are a few pieces of info to put you at ease.
- Looking back over the past five years, Liverpool property prices have gone up by 25%
- Liverpool can boast with record-breaking levels of investment which will, in turn, create thousands of new jobs in the city
- Liverpool is home to a large student population, creating consistent demand for well-located, high-quality rental accommodation.
- Liverpool is considered as one of the best-connected cities in the UK. Not to mention the HS2 project will further reduce travel times and boost the local economy
Liverpool’s property market continues to attract investors seeking affordable entry points, strong rental demand and long-term capital growth. Thus those who decide to invest in a Liverpool property are looking at amazing potential returns.
The North West continues to be viewed as one of the UK’s strongest regions for long-term property growth, supported by ongoing regeneration, employment growth and sustained rental demand. Which is 5.7% higher than the expected growth country-wide.
This means, that if you’re looking for a Liverpool investment property for sale now, you’d be looking at very favourable returns. Regardless of whether you’re in the market for Liverpool buy-to-let properties or you’re more long-term oriented.
With Liverpool property prices sitting at £208,370, you’d still be paying less than the UK average of £294,559. Not just less, these numbers show just how much room for growth Liverpool offers.
Who Is Liverpool Property Investment Best Suited To?
As a city which is considered as one of the most cost-effective cities in which to buy residential property, Liverpool property market is quite friendly towards a wide range of investment types.
Nevertheless, Liverpool buy-to-let and student property investments can offer strong rental demand and attractive long-term potential, depending on the location, property type and purchase price. As far as Liverpool property prices go, here’s a little more info on that.
Most properties that have sold over the last 12 months are semi-detached houses, which have reached an average of £230,155. Terraced properties went for an average price of £153,249 and detached properties at an average price of £395,940. Prices were similar to the year before and 12% higher than the peak in 2020, when the average property price reached £186,118.
Where to Find the Best Property Investment Opportunities in Liverpool
Liverpool has topped the charts in TotallyMoney.com’s list of property investment hotspots, boasting a total of six postcodes featuring in the Top 25 of best areas to invest in Liverpool property.
But as far as areas go, these are the ones that show the most potential:
Kensington-In last year, the average price for a property in Kensington was £140,014. Located on the fringe of the city centre.
Toxteth– an inner-city area of Liverpool located to the south of Liverpool City Centre. One of the cheaper areas of Liverpool for property and the area is popular with students and is known as an “up-and-coming” part of the city. Average property prices in Toxteth over the past year were £151,183.
Bootle-Located North of the City Centre, Bootle offers mid-priced property and plenty of HMO properties. It is well-serviced by bus and rail routes. The current average property price in Bootle is around £147,624.