Liverpool Property Investment

A guide on where to invest and how to secure the highest return on investment.

The Liverpool property market has many benefits for investors, including lower entry prices and the possibility of higher rental yields. In this guide you will discover how to profit from property investment in Liverpool and discover why it is a high yielding real estate hotspot offering strong growth potential.

Property investment, Liverpool

Liverpool is one of the UK’s most loved cities and boasts a rich cultural and historical heritage. From the Beatles to the Titanic, Liverpool has a rich cultural legacy and is internationally recognised as one of the UK’s most-loved cities. It has been over ten years since Liverpool was crowned the European Capital of Culture in 2008. Over this time, the Merseyside city has established itself as a popular tourist destination for UK and international visitors.

With popular attractions including the bustling Liverpool ONE shopping centre, the Arena Convention Centre and countless restaurants, bars and pop-up businesses, Liverpool has much to offer residents, visitors and property investors – plus it the country’s fifth most visited place by overseas tourists.

Liverpool’s city centre population is growing at record pace and with five world-class universities, billion-pound private investment projects and the largest number of start-up businesses in the UK, this buoyant city has emerged as a hotspot for property investors.

High demand, low supply Liverpool’s property market has been undersupplied for many years which has resulted in an influx of private investment.

The city centre population has grown at a faster pace than any other UK town or city however, the amount of people living in Liverpool has increased faster than the number of new homes being built.

Locations with large student populations often perform well for landlords and with over 57,000 students, Liverpool is home to one of the country’s biggest markets.

Over 66% of properties in Liverpool are privately rented with 50% of all properties occupied by young professionals. Liverpool has a flourishing property market and is widely considered as a UK buy-to-let property hotspot.

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What’s in the guide?

  • Location Guide: Where to Invest
  • Which Asset Class is Best for You
  • Market Fundamentals
  • Why Now is the Time to Invest
  • Learn how to Maximise your ROI
  • UK House Price Forecast
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Why invest in Liverpool property?

Top location for
buy to let landlords

Liverpool has been identified as a strong option for property investors interested in entering the buy-to-let market in the UK. In a new report produced by comparison website GoCompare, Liverpool was ranked fourth in the list of the ten best cities to be a landlord.

The index was compiled based on a number of key factors that contribute to a destination’s overall appeal to property investors, such as average prices, typical rental yields, the proportion of the population under the age of 35 and the number of new housing developments.

Top location for buy
to let returns

The latest 2019/2020 report by Totally Money listed three Liverpool postcodes among the top ten areas for UK buy-to-let investment, based on the rental yields available.

One of the key conclusions in the report was that locations with strong student populations offer good potential for investment returns.

Home to the UK’s fastest growing population

The current generation of young people in the UK are bucking the trend set by their forebears and making a ‘rapid return’ to city-centre living, according to findings from the Centre for Cities.

Analysis of data from the Office for National Statistics shows that Liverpool has led the way in city-centre population growth. Between 2002 and 2015, the number of people living close to the centre of Liverpool increased by 181%, from 9,100 to 25,600. Compared to 30 years ago, many modern city centres have a lot more to offer residents, particularly students and young, affluent professionals.

The Centre for Cities analysis highlighted a 208% increase in Liverpool’s city-centre student population between 2001 and 2011, with 6,300 more college and university attendees choosing to live there.

There are some exciting opportunities waiting to be seized. The need for desirable living space in popular, convenient locations means high occupancy levels, a low risk of void periods and a strong likelihood.

What you need to know about investing in Liverpool

  • Are house prices rising in Liverpool?
    Liverpool is leading the way in terms of enhanced economic prospects for the whole of the UK at present, with the Savills research predicting house price growth in the city will accordingly exceed the national average during the next five years.

    A 4.5% uplift in value is forecast this year for the North West region where Liverpool’s property market resides, exceeding the 4% prediction for the nation as a whole. This is a trend that then continues in the coming years, with the region experiencing the fastest growth rate expected until 2025 (28.8% total).

    At the same time, business in Liverpool is booming and employment growth is predicted to achieve a rate of 0.4% per annum, with the corresponding level of attraction for the city forecast to flourish. More jobs mean more people, which in turn means the need for more homes. It is a positive development that will only serve to benefit those entering property investment opportunities in Liverpool.

    This Liverpool investment news means that investors in the market will be faced with a growing array of options in the years to come, with more new developments coming to market to meet the city’s expanding needs.
  • Is Liverpool a good place to invest in property?
    Combined with relatively low entry prices, good prospects for capital growth and steady demand from tenants, Liverpool is one of the UK’s most attractive and potentially lucrative buy-to-let investment destinations.
  • Why is Liverpool property cheap?
    According to Zoopla, the average price of property in Liverpool is £196,959. When compared to the national average of £256,405 (UK House Price Index), Liverpool property is cheap in comparison and offers buy to let investors a significantly lower entry level onto the UK’s property market.

A fast growing city

£5.5 billion reasons to invest

Investment in Liverpool and its 60-hectare historic docklands site has become a regeneration centre, with plans for a mixed-use world class quarter that attracts businesses and new residents alike.

Liverpool has emerged as a more prominent player in the north in recent times, as the city attempts to mirror growth seen in neighbouring Manchester over the course of the last half decade.

Schemes like the billion-pound plus reinventing of the Knowledge Quarter, providing fantastic collaborative opportunities between businesses and universities have helped Liverpool to put itself on the map as a growth city. But it’s not just the centre of the city itself that is now on the cusp of thriving.

One of Liverpool’s most iconic landmarks is its historic Albert Dock, which has been a feature of the city since 1846, when the city was thriving as an industrial port. Now, plans are in motion to reinvent the 60-hectare area as a mixed-use, world class quarter that will strive to bring together retail, offices and residential buildings to create a new community in an area that has long been crying out for something new.

Investment in Liverpool
continues to grow

Investment in Liverpool is one of the hottest places in the UK for regeneration at the moment, and with good reason.

As well as the rising student numbers that are flowing into the city thanks to the regeneration of the area, there has been a climb in the number of businesses coming to Liverpool, helping the Merseyside city become the fastest rising in terms of productivity in the UK outside London.

By making use of parts of the city that have been overlooked in recent years, local authorities are hoping to make the most of the momentum that has come from this growth, and keep it going for the next few years through new developments that create thriving communities.

In the past 12 months, Liverpool has also become one of the most prominent UK locations for start-up businesses. According to a report from DueDil, Liverpool saw the number of small businesses in the city expand by more than 21%, and it’s expected that this will continue to grow.

This sort of appetite for Liverpool as a centre of business is one of the main reasons for the growth and regeneration of the city that has been taking place in recent years, and with more demand for new workplaces and residences as a result, it makes sense that there are plans for this to continue for some time to come.

Liverpool Waters

The Liverpool Waters development at the docklands is set to be one of the biggest regenerations ever seen in the UK, with 2.3km of the city’s coast set to be transformed into an extension of the city centre Central Business District. Some £5 billion has been set aside for the project, which will see more than two million sq.m of mixed-use floor space built in the years ahead.

The Waters development is made up of four distinct areas; Wirral Waters, Central Docks, Princess Dock and Northern Docks, each of which will bring home, work and life together in unique focused communities to give Liverpool’s waterside a fantastic new edge that should attract businesses and residents alike for years to come.

When completed, the Liverpool Waters development will have more than 9,000 new homes, 315,000 sq.m of office space, 35,000 sq.m of conference rooms and hotel rooms, 27,000 sq.m of restaurants and cafes, as well as two parks and a cruise liner terminal, turning what was once an increasingly obsolete part of the city into something for everyone.

On top of the increased focus on residential, community, work and lifestyle centres, Liverpool Waters is also hopeful of delivering a new boost to the infrastructure of the city.A new road network is being planned for increasing the links between the new development on the water and Central Business District, as well as the wider Merseyside region.

With such a focus being put on the investment in Liverpool, and the appetite for more development and business growth that appears to be in place in relation to the city, it seems clear that Merseyside will continue to grow for some time, and new communities such as Liverpool Waters will only help it to thrive.

Business and economy

Liverpool has emerged as a popular destination for new businesses and has been ranked as the third best location for start-ups in the UK.

A steady flow of new talent from university graduates is ideal for recruitment, and the city’s relatively low cost of living – when compared to other UK core cities – has made Liverpool an attractive option for business owners.

The broad nature of business opportunities available in Liverpool has been reflected on the city’s commercial property market, where a variety of commercial spaces are required to keep up with the city’s needs.

In the years to come, Northern Powerhouse cities like Liverpool will offer property investors strong growth potential. The continual expansion in the city’s business, education, infrastructure and housing markets have the potential to create a swell in demand for commercial and residential property investment, offering buy to let investors a reliable rental income from investing in Liverpool property.

Liverpool Student Property
Investment Market

With around 57,000 students, Liverpool has emerged as one of the UK’s main university cities. A strong student population is one of the key characteristics of Liverpool that supports demand for rental property in the city.

Liverpool is home to 5 award-winning universities which all offer specialist courses and world-class teaching facilities. Part of the prestigious Russell Group, the University of Liverpool is a ‘Red Brick’ establishment which is home to around 30,000 students, including 7,000 international students.

This cultural hotspot in the North West of England is also home to a growing business district, and therefore more workers looking for living space, as well as highly desirable areas such as the Baltic Triangle, which the Times last year singled out as the coolest place to live in Britain.

Liverpool’s strong appeal to renters means high occupancy levels and a low risk of void periods for buy to let property owners.

7% NET yield
Realistic and reliable rental assurances for up to 5 years.
Ideal for UK and
overseas investors
Low entry level properties, ideal for portfolio diversification.
Prime locations
with high demand
All developments are located in popular UK university towns and cities.
Fully managed and furnished student apartments.

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Our team has over 50 years of experience working in the UK property industry and knows how to select opportunities that provide real growth potential.