Do you seek profitable property investment opportunities in a fast-growing UK city?
Look no further than Liverpool — one of the UK’s hottest property investment destinations, with a booming economy, growing population, and affordable property market.
With solid rental demand and yields up to 7.3% in some areas, investing in Liverpool property could generate strong cash flow and significant long-term gains.
A sizable student population and popularity as a tourist destination create consistent demand for buy-to-let properties in Liverpool. The city offers some of the highest rental yields in the UK, averaging around 6.1% for buy-to-let investments. As the economy and population grow, demand for rental property should remain robust.
While property values in Liverpool have already appreciated substantially, continued economic development will likely drive further price increases over the long term. The average home in Liverpool has risen in value by about 40% in the past ten years, and some areas have nearly doubled. In essence, property in growth locations like Liverpool is an appealing investment for capital appreciation.
Continual economic growth and development in Liverpool has resulted from strategic planning, targeted investments, and a favourable business environment.
Here are six factors that have contributed to this positive economic trajectory fueling property investment in Liverpool:
Liverpool has witnessed substantial investments in its infrastructure, which have not only improved the city’s overall connectivity but also provided a solid foundation for economic growth. The £5 billion Liverpool Waters development is a prime example of this.
The project aims to transform the city’s northern docks, creating new commercial spaces, residential areas, and leisure facilities. This development has not only created jobs during its construction but is also expected to attract businesses and residents, further boosting the local economy in the long term.
Liverpool has seen significant growth in its retail sector, with new shopping centres and commercial spaces being established to cater to the growing population and increasing tourism numbers. The city’s rich cultural heritage, along with attractions like The Beatles Story, the Royal Albert Dock, and various museums and galleries, have made it a popular tourist destination. This influx of tourists has positively impacted the hospitality industry, creating employment opportunities and contributing to the overall economic growth.
Liverpool is home to several esteemed universities and research institutions, making it a centre for educational excellence. The city’s commitment to investing in education and research has led to a highly skilled workforce, attracting talent from around the world. Graduates and researchers often remain in the city to work, leading to the development of knowledge-based industries and fostering increased demand for buy-to-let in Liverpool.
The £4 million upgrade to Liverpool John Lennon Airport (LJLA) has improved the city’s air transport facilities, making it more accessible to domestic and international travellers. With improved connectivity, businesses can easily access markets beyond the region, and tourists find it more convenient to visit Liverpool. This increased connectivity has opened up trade, tourism, and foreign investment opportunities.
Liverpool’s local government has actively supported business growth by fostering a business-friendly environment. This includes offering incentives to attract companies to set up or expand their operations in the city, streamlined administrative processes, and a commitment to cutting red tape. Supporting local entrepreneurship and small businesses has been crucial in driving economic growth and job creation.
Liverpool has successfully diversified its economy, drifting from traditional industries to embrace emerging sectors such as real estate, digital technology, creative industries, and renewable energy. This diversification has made the city more resilient to economic fluctuations and has opened up new avenues for growth and innovation.
Liverpool’s property market warrants serious consideration for investors seeking strong capital growth and rental yields. Strong fundamentals, a growing economy, high rental demand, and the potential for solid returns make Liverpool an attractive place to invest in UK property. By partnering with an experienced firm like Baron & Cabot, investors can gain access to the Liverpool property market and benefit from our local knowledge and expertise.
In recent years, Liverpool’s economy has been transformed through massive regeneration and investment. The city centre has been revitalised, with new retail, commercial and residential developments. Liverpool’s economy is thriving, built on industries like maritime trade, tourism, culture, and knowledge.
Liverpool has a long history as a centre for trade and commerce. Today, the city remains an important maritime hub, with one of the largest ports in the UK. Liverpool is also attracting significant investments from global finance, professional services, and technology companies — all encouraging property investment in Liverpool.
Liverpool has a booming tourism industry that attracts over 71.7 million visitors annually who contribute more than £3.58 billion to the local economy. The city’s cultural scene centred around the Liverpool Waterfront is a huge draw. Destinations like the Albert Dock, Beatles Story, Tate Liverpool, and Liverpool Cathedral attract visitors from around the world, while events such as the Liverpool Biennial boost tourism.
Liverpool has a large student population and a highly educated workforce. Liverpool’s three universities include the prestigious University of Liverpool, Liverpool Hope University, and Liverpool John Moores University. These institutions have over 55,000 students (1,2,3) and produce graduates in business, finance, technology, and healthcare each year. This contributes to a skilled, knowledgeable workforce that supports business growth and innovation across Liverpool.
For property investors, strong demand and rising rents translate into healthy yields. The average gross rental yield for Liverpool buy-to-let properties is around 6.1%. This is higher than the UK average of 4.75%, suggesting good potential for capital appreciation over time.
Within Liverpool, the highest yields can be found in up-and-coming districts undergoing regeneration, where property values have significant room for growth. The strong and growing demand for rental properties and competitive yields makes investing in Liverpool property attractive.
The following factors contribute to this heightened demand and yields:
According to research from the Liverpool City Council, Liverpool’s population is projected to increase to 371,303 by 2041, driving further demand for housing. Many of these new residents will enter the private rented sector, signalling an increased demand for rental accommodation over the next decade.
With high demand and a shortage of available housing, rents in Liverpool have risen steadily over the last several years. Average rents in the city centre and surrounding districts currently stand at £1,128 per month for a two-bedroom flat and £1,576 per month for a three-bedroom house. Rental price growth in Liverpool has outpaced the national average for the past four years, demonstrating the city’s desirability and undersupply of housing.
Liverpool exhibits the three characteristics of a top property investment location: a growing population, a shortage of housing stock resulting in rising rents, and the potential for strong yields and capital gains. For investors seeking to build a portfolio in a city with a bright future, Liverpool deserves strong consideration. Its vibrant culture, improving infrastructure, and ambition to become a leading digital and tech hub in the UK all point to a city on the rise — reach out to the expert property investment team at Baron & Cabot to kickstart your investment in this property hub.
Liverpool’s tourism and hospitality sector is booming and ripe with investment potential, especially in serviced apartments and short-term rentals. These property types offer solid investment prospects.
Liverpool’s serviced apartment sector has grown over 60% in the last five years. Occupancy rates average 71% on weekdays but can reach 82% on weekends. Rental rates for serviced apartments also continue to rise, with 4-star apartments averaging £311 per night.
For buy-to-let investors, short-term rentals via platforms like Airbnb can generate strong yields. According to AirDNA, the average daily rate for an Airbnb in Liverpool is £169, with an annual revenue potential of over £23,000. After costs, net annual returns of over 8% are achievable for well-located, quality properties.
The best buy-to-let areas in Liverpool for tourism and short-term rentals include the following:
Liverpool’s booming tourism industry and shortage of quality short-term accommodation options provide an exciting opportunity for property investors. Serviced apartments, holiday rentals, and buy-to-let investments in the city centre and surrounding districts offer the potential for strong yields and long-term capital growth. Investing in Liverpool property in the tourism and hospitality sector is poised to deliver high returns.
Investing in student property in Liverpool provides lucrative returns for investors. Liverpool has a large student population, with over 55,000 students across three major universities. The high demand for quality student housing creates an opportunity for investors with the following benefits:
Note: Baron & Cabot doesn’t provide student property, but it’s an option if you’re considering buying in Liverpool.
When choosing a partner for your Liverpool property investment, there are several reasons why Baron & Cabot should be at the top of your list.
Baron & Cabot has years of experience helping investors purchase property in Liverpool and the UK. Our property investment team knows the Liverpool market inside out and has the expertise to help you identify prime investment opportunities with strong potential for high returns. We reference a 122-point due diligence checklist when sourcing properties to ensure investors get the best options with promising returns.
Baron & Cabot is an established firm boasting solid relationships with property developers and agents across Liverpool. This gives our clients exclusive access to new, off-market property listings.
We provide end-to-end support for your Liverpool property investment, which includes the following:
The goal of any investment is to maximise your returns. The team at Baron & Cabot is dedicated to helping clients build wealth through property investment. We stay on top of market trends to determine the best locations and property types for high rental yields and strong capital growth potential — all to ensure you achieve the best possible returns on your Liverpool investment property.
With a long and proven track record, exclusive listings, and a full suite of support services, Baron & Cabot has everything needed to make your Liverpool property investment successful. Our experience, expertise and client-centric approach set us apart, making Baron & Cabot the logical choice for navigating the Liverpool market.
Yes. Liverpool’s housing market is experiencing a boom, with asking prices increasing over 23% between 2019 and 2022 alone. Housing demand continues to outstrip supply, indicating strong growth potential for investors.
Liverpool also has one of the highest buy-to-let yields in the UK, hitting 7.3% in some areas. With interest rates at historic lows, mortgage rates are equally favourable. All signs indicate now is an excellent time to invest in Liverpool property.
While Liverpool’s economy and job market have grown steadily over the past decade, housing prices have somewhat lagged. This has created an opportunity for investors to purchase property at a low entry point. The average house price in Liverpool is £177,930, a fraction of prices in southern England. The affordable cost of living and housing in Liverpool also supports a thriving rental market.
Yes, Liverpool property represents an attractive opportunity for buy-to-let investors and those looking for capital appreciation. Factors like affordable housing, a shortage of quality rental housing, strong tenant demand, and predictions of solid price growth all point to Liverpool being a worthwhile investment location. Liverpool also benefits from three renowned universities as well as a growing digital and creative economy — all contributing to its investment appeal.
Yes, Liverpool is currently experiencing the worst housing shortfall in the UK, with a deficit of around 232,759 homes, indicating a significant housing shortage in the city. This deficit can have severe implications on housing affordability and accessibility for residents, making it challenging for many people to find suitable and affordable housing options.
The situation underscores the need for urgent attention and comprehensive measures to address the housing crisis and provide adequate housing solutions for the population. Hence, investors are more likely to see a huge return on their properties if they take advantage of this shortage.
Liverpool is an ideal city poised for strong property investment growth. With massive regeneration transforming the city, record levels of investment pouring in, and a vibrant culture attracting young professionals, Liverpool property offers an exciting opportunity.
Investing now in this burgeoning market can result in significant capital appreciation and strong rental yields. The future is bright for Liverpool, and property investors stand to gain substantially from the city’s renaissance.
Find out more about our latest UK property opportunities get in touch with our team.