Liverpool has become a standout city for buy-to-let investment. Known worldwide for its cultural heritage, the city was crowned the Capital of Culture in 2008.
Now, Liverpool’s booming economy and youthful population make it one of the UK’s fastest-growing buy-to-let markets.
Investment in Liverpool’s regeneration has transformed the city over the past decade. Major projects, like the £5.5 billion Liverpool Waters development, have boosted the local economy and drawn new residents. This influx has fuelled demand for rental properties, creating a robust buy-to-let market for investors.
Liverpool’s property market offers exceptional value. According to recent data, £1.5 million could secure five or six apartments in Liverpool. In contrast, the same investment might buy only one in Central London. Liverpool properties provide more space per square foot and deliver higher rental yields. This combination of affordability and yield potential makes Liverpool highly attractive to buy-to-let investors.
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1.3%
As of August 2024, the average house price in Liverpool was £179,000, reflecting a 1.3% increase from August 2023 (ONS). Consistent price growth signals a stable property market with strong appreciation potential.
8.2%
In September 2024, the average monthly rent for a private property in Liverpool reached £793, an 8.2% increase from £733 in September 2023 (ONS). Rapid rent increases highlight Liverpool’s strong rental demand, creating potential for attractive rental yields.
£16.7bn
Liverpool’s economy is valued at £16.7 billion in GDP, with a GDP per capita of £37,449, aligning closely with the national average (Liverpool City Council). A robust economy with competitive GDP figures supports job creation, income stability, and long-term demand for housing
922,871+
Liverpool’s population reached an estimate of 922,871 in 2024 and continues to grow (World Population Review). This trend ensures a healthy pool of tenants for buy-to-let properties in Liverpool, driving sustained rental income potential
Liverpool’s property market has demonstrated robust growth in recent years. As of August 2024, the average house price for a home bought with a mortgage was £190,000, an increase from £188,000 in August 2023. This upward trend indicates a resilient market, offering potential for capital appreciation.
Despite this growth, Liverpool’s property prices remain below the national average. This presents an attractive opportunity for investors seeking affordability combined with growth potential. The city’s ongoing regeneration projects and economic development are expected to further enhance property values in the coming years.
The rental market in Liverpool has experienced significant growth, driven by high demand and limited supply. As of September 2024, the average monthly rent for a one-bed property in Liverpool rose by 9%, marking a notable increase from the previous year.
This trend underscores the city’s strong rental yields, making Liverpool an appealing destination for buy-to-let investors.
The city’s large student population and influx of young professionals contribute to sustained demand for rental properties. This dynamic ensures a steady rental income stream for investors, further enhancing the attractiveness of Liverpool’s buy-to-let market.
Since its year as the European Capital of Culture, Liverpool has experienced extensive regeneration throughout the city. The city is currently undergoing a series of transformational developments and regeneration projects that will transform Liverpool well into the 21st century.
Developments such as the Liverpool ONE Shopping Centre, the Echo Arena and the £5.5 billion Liverpool Waters regeneration project have all played their part in transforming Liverpool into one of the UK’s most prosperous cities..
A massive £14 billion regeneration-led renaissance is currently underway. The scheme will deliver 10,000 new homes, a brand new, a state-of-the-art football stadium for Everton FC, a new cruise terminal, a new TV and Film hub as well as £250m of road infrastructure and 2 million sq ft of commercial office space. All of this will massively benefit both the local economy and property market.
While the Northern Powerhouse project may not have fully materialised, cities across the North of England, including Liverpool, Manchester, and others, have seen significant growth and transformation through innovation and large-scale property-building projects. Liverpool, in particular, continues to thrive from its ambitious regeneration plans, contributing to its reputation as one of the UK’s most exciting cities for buy-to-let investment.
Liverpool’s diverse neighbourhoods offer varying opportunities for buy-to-let investors, each with distinct characteristics and potential returns. Below is an overview of the best buy-to-let areas in Liverpool, based on recent property data:
The L4 postcode covers the areas around Liverpool’s two major football stadiums, Anfield and Goodison Park, as well as the popular Stanley Park. This area draws sports fans, tourists, and local residents, resulting in steady demand for rental properties.
The proximity to major attractions and consistent tenant interest makes L4 one of Liverpool’s most profitable areas, with a solid 7.8% yield that ensures reliable income.
Encompassing Vauxhall and Everton, the L5 postcode benefits from significant regeneration, including the construction of Everton’s new stadium at Bramley-Moore Dock. This development is set to elevate property values and rental demand in the coming years.
With a 5.9% yield and rising property values driven by new developments, L5 offers a promising blend of rental income and potential capital appreciation, appealing to long-term investors.
Situated along Liverpool’s docks, L20 includes Bootle and Canada Dock. The area benefits from maritime activity, with ferries and cruise ships frequently docking nearby, contributing to the local economy and supporting rental demand.
With one of the highest yields in Liverpool at 8.0%, L20 presents an excellent opportunity for investors seeking affordability combined with high rental returns, making it ideal for maximising rental income.
As Liverpool’s central postcode, L1 features key attractions such as Liverpool Central Station, the Liverpool ONE shopping centre, and the Baltic Triangle. This area is a magnet for students, young professionals, and tourists, leading to a competitive rental market.
L1’s central location, high tenant demand, and 5.3% rental yield make it an attractive choice for investors aiming for stable occupancy rates and a diversified tenant base.
Located in the north-east of Liverpool, the L13 postcode covers neighbourhoods such as Old Swan and Tuebrook. These areas offer a mix of residential housing, local shopping districts, and easy access to city amenities, making them appealing for families and working professionals.
L13 provides affordable entry prices with a solid yield of 7.0%. Its mix of local amenities and growing demand make it attractive for long-term rental income.
The L9 postcode includes parts of Walton and Aintree, close to the famous Aintree Racecourse. The area is known for its convenient transport links to central Liverpool and proximity to leisure activities, appealing to diverse tenant groups.
With a 6.8% rental yield, L9 offers a balance between rental income and accessibility, drawing stable tenant demand and consistent cash flow.
Located near the city centre, L6 includes areas like Kensington and Fairfield. With recent regeneration efforts and affordable properties, L6 is particularly popular with students and young professionals due to its proximity to universities and amenities.
L6’s high yield of 7.2% and its appeal to both students and professionals make it a great area for buy-to-let investors focused on city-centre convenience and rental income potential.
Wavertree, located within the L15 postcode, is a vibrant residential area with a large student population. The area offers good transport links and easy access to both the University of Liverpool and Liverpool John Moores University, making it a popular choice for student accommodation.
With a yield of 6.9%, L15’s student-driven demand provides a reliable income stream, particularly for investors interested in renting to university students.
Buy-to-let deposits in Liverpool usually range from 25% to 40%, depending on lender requirements and your financial profile.
A larger deposit can often secure better mortgage terms. For cash purchases, many developments offer flexible payment plans with staged instalments. Contact us for guidance on financing options that best fit your investment goals.
Yes, Liverpool’s high student population creates consistent demand for rental properties. Liverpool boasts three reputable universities hosting approximately 70,000 students. In addition, many students remain in the city and become young professionals after graduation. At Knight Knox, we have extensive experience and expertise in student property investments UK-wide.
Rental yields in Liverpool vary, with high-yield areas like L4 (Anfield) at around 7.8% and L20 (Bootle) up to 8.0%. See above for more information or contact us for property investment advice.
Location: Proximity to transport, amenities, and universities.
Rental Demand: High-demand areas ensure steady income.
Condition: Properties in good condition attract reliable tenants.
Future Growth: Regeneration areas often see increased demand and appreciation.
At Knight Knox, we can help you navigate these factors to select properties best suited to your investment strategy.
Consider potential void periods, maintenance costs, market fluctuations, and regulatory changes. An experienced agent can offer essential support to mitigate these risks, from tenant management solutions to keeping investors updated on market changes.
Effective management includes:
Hiring a Letting Agent: Letting agents handle rent, tenant sourcing, and maintenance.
Regular Property Maintenance: A well-maintained property attracts long-term tenants.
Clear Agreements: Protect your investment with clear tenancy terms.
Staying Informed: Knight Knox provides ongoing support and updates on market trends to help you stay ahead.
We’re here to support you throughout your investment journey, from property selection to long-term management solutions, ensuring you make the most of your buy-to-let in Liverpool
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