Property Investment Company Liverpool
Liverpool is a growing city with plenty more on the horizon, with the city boasting the UK’s second largest regional economy. Consequently, it comes as no surprise that property investment in Liverpool is rapidly on the rise. Read more about the buy-to-let opportunities available to property investors on this page.
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Overview
Liverpool has enjoyed a remarkable resurgence in recent years, but it has been one of the world’s greatest port cities for generations. Thanks to an influx of new businesses, along with excellent infrastructure and prosperous tourism, it is now globally-renowned as a great place to work, study and live.
The city, famously known as the birthplace of The Beatles, was honoured with the title of European Capital of Culture in 2008 and it has had over £14 billion worth of investment into regeneration and transformation since then.
The Liverpool Maritime Mercantile City is a UNESCO World Heritage Site and the once derelict docks are now being restored to their former seafaring glory with the new shipping terminal looking to be one of Europe’s most advanced.
As a leading property investment company, Liverpool is one of our top picks for the future. The city has all of the fundamentals we advise our clients to look for, and more.
Featured Buy-To-Let Properties In Liverpool
Property investment in Liverpool - why?
With serious regeneration over the past two decades and more in the pipeline, Liverpool has grown into one of the UK’s leading cities for property investment.
Furthermore, the affordable property prices mean that Liverpool has some great yields – in fact it was named the number one city for rental yields in the UK (Totally Money Buy-To-Let Yield Map for 2019/20). This is coupled with high potential for capital growth over the mid-to-long term, signs of which we have already seen.
These factors have seen a number of property investors turn their attention to this amazing city. The likes of the Baltic Triangle, Liverpool Waters and the Knowledge Quarter, just to name a few, are making Liverpool one of the most exciting and fast growing areas to invest in the country.
Population Growth
Liverpool is a city that has been growing steadily for over 20 years. The city of Liverpool has a population of almost 500,000 people whilst the broader Liverpool city region has an estimated population of over 1.5 million people. With annual population increases of over 0.5% (and rising), and an 8.9% population increase in the past 10 years, Liverpool looks set to remain a bustling northern city.
On the rise
The Office for National Statistics predicts that the population of Merseyside will rise by over 100,000 by the year 2043, an astonishing rise of 8.5% of the population as of January 2021. Meanwhile Liverpool City Council predicts a remarkable growth of 33,000 people, or 6.6%, by 2030 alone.
Young and Educated
Liverpool’s population is also a young and educated one, spread across it’s 5 universities there are over 60,000 students, of whom a relatively high 31% will remain in the city after graduating, with Liverpool seeing an overall gain each year in its graduate population.
Transport and Connectivity
Liverpool is a well connected city with an expansive transport network throughout including road, rail and ferry networks alongside an international airport.
Driving
Liverpool is connected to other major cities via the M57 outer ring road and M62 motorway, providing access to Manchester, Leeds, Huddersfield and Hull. From here drivers can connect to the north/south M6 taking them further afield and from there the M1 between Leeds and London.
Rail
Serviced by the mainline rail network, Liverpool Lime Street station is connected to the rest of the UK, with at least one train per hour heading for London.
Merseyrail is Liverpool’s internal rail system, one of the most extensive in the UK, three lines cover every area of the city region, including an underground network with four city centre locations and over 6.5 miles of tunnels.
By Sea
One of the most famous and historically significant docks in the world, Liverpool’s coastal location enabled it to act as a central hub for trans-Atlantic trade during the industrial revolution and beyond.
Today the port serves long distance cruises to Iceland, France, Spain and Norway. P&O Ferries run services to Dublin and Isle of Man Steam Packet operate services to and from Douglas, Isle of Man.
There is also the famous Mersey crossing ferry, an important connection between Liverpool and the Wirral as well as a tourist attraction, made famous by the Gerry and the Pacemakers song ‘Ferry Cross the Mersey’.
Airport
The John Lennon Airport serves the city, with 64 destinations and over 5 million passengers flying through it annually. There are also rail links from Liverpool Lime Street to Manchester airport.
Regeneration and Investment
Since the year 2000 no other area has experienced more economic growth within the UK than Liverpool, attracting over £1 billion a year in investment, numerous regeneration projects are currently underway. A brief overview of a few of these includes:
- The £260 million Anfield Project. Creating over 1000 new homes in the community surrounding the Anfield stadium.
- The £190 million Baltic Triangle. A region immediately south of the city centre with a blossoming creative and digital sector.
- A £1 billion investment in Paddington Village. A site focused on developing a commercial focus on life and medical sciences and knowledge industry led developments, creating upwards of 10,000 jobs.
- £500 million invested in improving Liverpool’s roads, including resurfacing and widening roads, junction improvements, new pavements, signage and traffic lights. Improving the city’s road infrastructure for drivers, pedestrians and cyclists alike.
- Most notably perhaps is the £5 billion Liverpool Waters project. A 30 year vision to redevelop Liverpool’s waterfront, including new homes, office space, hotels, restaurants, docks and a new stadium for Everton FC.
There is currently so much investment going into the Liverpool city region that we could keep you here for hours reading about it. With thousands of new homes being built annually and billions in investment going into the region there are few more promising property investment markets currently in the UK.
Business Growth and Employment Opportunities
Liverpool has recently been given a boost to its long term economy through the granting of Freeport status by the government. This means that Liverpool’s port will form a Free Trade Zone, leading to an additional £850m for the economy and the creation of 14,000 jobs.
This presents massive opportunities for investors and businesses alike throughout the Liverpool city region. It is hoped that this will also stimulate innovation in the energy sector, encouraging development of hydrogen, offshore wind and tidal power in a bid to reach the government’s Net Zero ambitions for carbon emissions.
Combined with the £5 billion Liverpool Waters investment the region is set to be transformed into a modern hub of industry with opportunities for businesses, investors and employment driving the city’s already impressive growth.
Standard of Living
As a major UK city experiencing exceptional growth, Liverpool is an attractive prospect for many young professionals when it comes to choosing somewhere to live. After all, Liverpool enjoys a bustling nightlife scene, one of the most affordable housing markets in the northwest, and it’s roughly 45% cheaper to live in than London.
The Liverpool Property Market
Having covered Liverpool’s fundamentals it is clear that the city is a desirable place for young educated professionals to live with a great deal of investment being poured into the city. So what about the property values? This section will analyse the value of property ownership and rental throughout the Liverpool city region.
Property Value Growth
When making the decision to commit to property investment you want to be secure in the knowledge that your investment will grow. Looking at Liverpool’s average prices over the last several years the trajectory of prices has been overwhelmingly upwards.
The graph opposite shows data from HM Land Registry on house price increases over time, displaying the upward trend of prices in Liverpool post-recession. Data from Zoopla reports that the growth of property value in Liverpool is even greater than that of Manchester at 11.78% p.a. compared to Manchesters 8.24% p.a. in their respective city centres.
Growth by Region
In fact the forecast appears quite promising for investors looking to purchase property in Liverpool. Investment firm JLL report that whilst the immediate short term effects of the Covid-19 pandemic will have a negative effect for a lot of the housing market, Liverpool property prices on the whole are expected to recover quickly and rise steadily from 2022 onwards at a rate of between 3% and 4.5% p.a.
It is in the city centre unsurprisingly that we see the highest levels of growth for Liverpool, with demand for property high following significant levels of local investment. However the upwards trend has been reflected in the greater Liverpool city region too, with Sefton and Halton only marginally behind with growth of 19.4% and 19.5% respectively. And with the ongoing improvements to local transport infrastructure the benefits to the surrounding areas could be reflected in the property market.
Rental Value Growth
The northwest of England is an attractive prospect for buy-to-let properties, with strong yearly growth in rental values. The average rental price increased in the northwest in the 12 months following April 2020 by 6.3%, whilst since April 2019 the average rental price has risen by over 12%, despite the uncertainty caused by the Covid-19 pandemic.
In Liverpool the strong demand has driven house price growth quicker than in neighbouring Manchester in the last year. This has created a potentially lucrative market for buy-to-let investors looking to capitalise on the projected 10% increase in rental value forecast by 2025.
Excellent Yields
On top of capital appreciation, the rising value of the property itself, the value of an investment can be reflected in the rental yield it produces. The rental yield is the percentage of the property’s value that it brings in per year in rental income.
It comes as no surprise that Liverpool has been named the number one city in the UK for rental yields. Why is this?:
- High demand – A large and healthy student population spread over five universities, combined with a net gain of graduates choosing to live in the city after finishing university has created a hot spot for educated professionals.
- Affordable properties – Unlike London, or even many northwest cities, properties in the Liverpool city region are far more affordable to both first time buyers and investors. This explains why rental yields in some areas can return a UK high of 10.3%.
- New developments – With billions in local investment comes new properties, job opportunities and economic prosperity. The effect of redevelopment on many areas will see an influx of prospective tenants and the availability of high quality housing for buy-to-let investors.
The graph opposite shows the areas where rental yields are greatest, and whilst central Liverpool is one of the best performing areas, it is similar to the nearby borough of Knowsley, demonstrating that the city centre isn’t the only place worth considering when choosing which area to invest in.
Is Property Investment in Liverpool Right For You?
When purchasing a buy-to-let property you have many options throughout the UK, and you’ll want to know that your money is working hard for you. With studies finding that the northwest and Liverpool in particular provide some of the best returns on investment for property owners, it is an area very much worthy of consideration.
The attractive prospect of high rental yields is aided by lower than average property prices for a major city region, making it ideal for buy-to-let investors.
Comparatively, London boasts some of the highest property prices in the UK, with the average house price sitting at around £700,000. This means that whilst capital appreciation is likely to result in a greater profit when it comes to selling a property, rental yields in some areas can rank among some of the lowest in the country.
Additionally recent years have seen average house prices in London fluctuate quite rapidly, with it not being an uncommon occurrence in some areas for values to decrease over short periods of time.
A city like Liverpool offers a good balance between rental yields and an overall increase in the value of your investment.
Property Value Forecast
Rental Price Forecast
Best Areas for Property Investment In Liverpool in 2021
The Liverpool city region comprises 6 local authorities: Wirral, Liverpool, Knowsley, St. Helens, Sefton and Halton (not to be confused with Merseyside, which is the same area minus Halton). Below we outline some of the areas of the Liverpool city region and how they may best meet your investment requirements.
Inner-City Liverpool
Like most cities, the city centre is the most popular area of Liverpool. This area is considerably popular for students, tourists and young professionals. Liverpool’s inner-city offers great affordability, coupled with high rental demand.
Apartments are the most popular choice among investors with the average purchase price for a 1 bed coming in at £109,274 and an average rental asking price of £675 pcm (Zoopla – May 2020).
L1 and L3 are the favoured postcodes for this type of investment, both offering great yields and reasonable property prices. Apartments in these postcodes have seen an increase in value by 20.91% over the past 5 years. Other good inner-city postcodes to consider are L6, L7 & L8.
North Liverpool
The popular towns within North Liverpool include Anfield (L4, L5, L6), Everton (L6), Kirkby (L32), Croxteth (L11), Aintree (L9), Walton (L4) and Bootle (L20). This part of Liverpool is becoming more popular for property purchasers and is one of the more affordable.
The Anfield area is undergoing a lot of regeneration with a £260 million scheme which will create 1,000 new homes. It is also the home of the world-famous football clubs, Liverpool FC and Everton FC.
The average value for a property in the Anfield area is £87,686 and it has seen a 6.10% increase from May 2019 – May 2020 (Zoopla May 2020).
South Liverpool
This area is a suburban district and it holds some of Liverpool’s highest property prices. It is more popular among affluent purchasers wanting to buy to live in rather than buy-to-let with a high proportion of young couples or families. You have areas such as Aigburth (L17) and Garston (L19) which are more popular with investors as they attract young working professionals making it a good case for investment.
Although this area may fall slightly short of Liverpool’s city centre when it comes to property investing, it still has a strong property market with increasing house prices. The Allerton and Mossley Hill area (L18) has seen an 8.70% increase from May 2019 – May 2020 (Zoopla May 2020).
Other popular areas in the south of Liverpool include Wavertree (L15), Childwall (L16), Speke (L24) and Gateacre, Hunts Cross & Woolton (L25). The average house price can vary from £135,153 – £314,698 depending on which part you are considering.
Crosby & Formby
Further north in the borough of Sefton you’ll find the beachside towns of Crosby and Formby. Both are popular tourist locations with miles of beaches and acres of national trust woodland.
Property prices here are quite high as a result, with Formby’s average sale price over £358,000 and Crosby’s being just shy of £250,000. They have seen value increases in the last year of 9% and 3% respectively.
These areas provide an option for those wishing to invest in higher value properties, at the expense of the highest rental yields.
Birkenhead & Wallasey
Located in Wirral, across the river Mersey, these areas are within 10 minutes of Liverpool city centre, accessible easily through Mersey Rail or Mersey Tunnels.
Average house prices in Birkenhead are £130,617 and in Wallasey, £161,392. Both have seen a rise in property values greater than that of the national average.
Types of Property Investment in Liverpool
Liverpool buy-to-let properties offer fantastic yields at affordable prices.
According to Totally Money, the number 1 postcode in the UK for the highest yields is L1, with an impressive 10%. In the top 25 you can find fellow Liverpool postcodes: L11, L6, L2, L3 and L4.
Prices are also very affordable right now, with the UK House Price Index stating an average price of £134,446 in the city.
As such, we expect Liverpool's buy-to-let properties to see large capital growth over the medium-to-long term.
Demand for student accommodation in Liverpool is exceptionally high.
The city boasts an excess of 54,000 students, but there are only 15,000 student beds available.
Knight Frank noted that the three Liverpool Universities were only able to house roughly 20% of their students in halls of residence in 2011, meaning there is a shortage of places and students must turn to alternative options.
Purpose-built student accommodation can help meet the demand, making this type of property a smart choice for property investment in Liverpool.
Future Projects
As outlined above, there are numerous development projects focused on regenerating the city and its surrounding areas. It is worth considering this when choosing where to invest as it will likely affect return on investment, whether that be through increased property prices, greater demand for rental properties or fluctuations in rental yields.
In the below section we’ve reviewed more of the projects so you can see what is being planned in the local area and what considerations may arise from these.
County District Centre
A £1 million investment into the north Liverpool area of Walton, led by a unique partnership of Everton FC and the Merseyside Police.
This project seeks to “remember, reimagine and revitalise” the district centre of County and Walton Road, in the County and Kirkdale wards.
The proximity of this area to Everton’s Goodison Park and Liverpool’s Anfield stadium is key, as Everton intend to move their ground to Bramley-Moore Dock, and would invest in redevelopment of the area around Goodison park, should they go ahead with the move.
The area is also undergoing improvements to the A59 road which links it to Liverpool city centre.
Festival Gardens Site
Festival Gardens is a site remediation scheme, cleaning up a derelict site north of Liverpool’s Festival Garden.
The scheme aims to deliver 1,500 new ‘eco-friendly’ homes, create a new eight hectare public open space with over 5,000 trees planted as well as oversee the removal of 800,000 tonnes of waste material processed.
Included in this development is a further £8.5 million infrastructure investment into drainage, roads, utilities and a gas ground management system.
These works will likely have a negative impact on local traffic and noise levels for the duration of the works.
Frequently Asked Questions
Below you can find a range of common questions from previous investors. If you require specific details and advice please do not hesitate to contact us today on +442036273987 or via [email protected].
01. Is Liverpool a good place to invest for capital growth?
Generally speaking, we consider Liverpool a good property investment location if you are looking at medium-to-long-term capital growth, but this does depend on the property so it’s important to do plenty of research and consult an expert before making a purchase.
02. What is the average price paid for a property in Liverpool?
The average price paid for a property in Liverpool over the past 12 months is £196,751 according to Zoopla. However, the average drops to just £137,147 for flats and apartments in the city.
03. Have house prices increased in Liverpool?
Yes, house prices in Liverpool have grown steadily since 2013. Data from the HM Land Registry shows the average price paid for Liverpool property has increased by 42% between 2013 and 2020.
04. Is Liverpool a good place to invest for yields?
Yes, many areas in Liverpool tend to achieve good rental yields. According to Totally Money, the best postcode in the UK for rental yields is Liverpool’s L1, with an impressive 10%. Several other postcodes in the city, such as L11, L6, L2, L3 and L4, are all in the top 25.
05. Will HS2 be in Liverpool?
Yes, Liverpool will be part of the high-speed network, HS2. It will have a journey time of 94 minutes to London, drastically reducing travel times between the city and the capital.
Why work with us?
As a property investment company in Liverpool and elsewhere across the UK, we pride ourselves on finding high-potential, well-priced opportunities in a clear, ethical manner for our clients. In addition:
- We do not charge any sourcing fees.
- We’re signed up to the Property Ombudsman Scheme to protect our clients.
- We conduct extensive due diligence on all investment opportunities.
- We provide after-sales support.
- Due to our close relationships with property developers, often we can get exclusive discounts or bonuses (like a free furniture pack)
- We’ll help you with any extra steps in your journey, whether that’s finding a mortgage provider, instructing a property management company, or something else.
Sources
We value an ethical, transparent approach to property investment. As such, please find links below to the sources of each of the claims made on this page. Before purchasing an investment property it’s important to perform your own research, so we hope these resources help.
- Fastest growing city centre, with the population more than doubling since 2002: https://www.bbc.com/news/uk-44482291
- Increasing graduate population https://www.centreforcities.org/reader/14524-2/detailed-look-movement-students-graduates/
- Top city for rental yields: https://www.totallymoney.com/buy-to-let-yield-map/
- Change in average property prices and rental yields over the past 5 years: https://propertydata.co.uk/
- Change in average property prices since 1995: https://landregistry.data.gov.uk/app/ukhpi
- Projected population: https://www.ons.gov.uk/
- 2025 property value and rental value forecasts: https://residential.jll.co.uk/insights/research/uk-residential-forecasts-2021
- Property market performance in local areas: https://www.zoopla.co.uk/
- Liverpool and HS2: https://www.hs2.org.uk/stations/liverpool/
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All information accurate as of September 2021