Investing in the Liverpool property market: What to expect

The North West has seen truly stellar increases in property prices in recent times leading many to consider investing in the Liverpool property market, it’s worth taking a closer look at the possible returns on investment and what to expect from this lively city. 

Since 2019 property prices in Liverpool have risen by an incredible average of 23%, with the typical property in the area selling for £202,233 as of May 2022.

It’s perhaps little wonder then that Liverpool is attracting investors far and wide. The city’s property market is strong across the board, including buy-to-let investments, student accommodation as well short term lets.

Home to four universities, a world-class tourism scene, and over 41bn set to be added to the city’s economy once a series of investment projects reach completion – things are certainly looking up for Liverpool.

If you’re considering investing in Liverpool with us here at Thirlmere Deacon, here is what you can expect, including more about what this fantastic city has to offer for your portfolio.

Liverpool property: An overview

  • Liverpool population (Metro area): 2,241,000
  • Average property price (May 2022): £202,342
  • Average rent PCM (May 2022): £883
  • Average percentage change (2021-2022): +6%

The Metropolitan area of Liverpool has a population of 2,241,000 residents and includes Ashton, Birkenhead, Ellesmere Port, Chester, Liverpool, Ormskirk, Skelmersdale, Southport, Runcorn, Warrington, Widnes and Runcorn.

In combination, Liverpool has the fifth largest metropolitan population in the UK, after London, Birmingham, Manchester and Leeds.

As noted above, the North West where Liverpool is located has seen record increases in house price valuations, climbing a whopping 15% in a recent twelve-month period alone. Even throughout the pandemic, property valuations and subsequent rental yields remained strong, to the level that the North West outperformed every other area of the country.

Consider also that these strong property price increases are paired against low entry rates, with the average property price in Liverpool standing at £202,342, compared with the UK average house price of £278,000, as of March 2022.

Read More: Liverpool Property Investment

Liverpool at night

Liverpool property ROI – What returns can I expect on my investment?

It’s safe to say that recent figures paint an extremely bright picture across the board for Liverpool property investors. However, as with any location you’re looking to invest in, the potential returns you can achieve will be based on a number of factors.

Namely, the specific area the property is located in, along with the property type and condition. Over time, the returns will shift upwards or downwards depending on how these combined specifics fair in the current climate.

Here is an overview of how the Liverpool property market has performed recently, including the areas that achieved both the highest and lowest rental yields.

Liverpool Property Investment – Areas with the lowest ROI

AreaAverage asking priceAverage ROI
L39 (Ormskirk)£327,8472.7%
L18 (Calderstones)£365,1663.1%
L17 (Sefton Park)£240,6703.5%
L15 (Wavertree)£182,0433.6%
L22 (Waterloo)£219,2023.6%

The area of Liverpool that has recently attained the lowest rental yields is L39 which covers Ormskirk. Positioned between Liverpool, St Helens and Southport, Ormskirk is a picturesque market town.

Properties in the Ormskirk area are mostly large detached family homes, which certainly reflects the higher than average asking price for the general Liverpool area at £327,847. However, with typical rental yields of just 2.7%, buy-to-let investors would not achieve the types of rental yields that are attainable closer to the city centre.

In the L15 district of Wavertree, average property prices are far more in reach averaging £182,043. Although, average rental yields struggle at just 3.6%.

Liverpool Property Investment – Areas with the highest ROI

AreaAverage asking priceAverage ROI
L4 (Anfield)£108,2446.6%
L1 (Ropewalks)£143,7456.2%
L7 (Edge Hill)£135,3966.1%
L6 (Newsham)£131,5676.1%
L3 (Vauxhall)£162,0796%

Looking at the areas in Liverpool that achieve the highest rental yield, it is a surprising picture given these areas have some of the lowest entry points paired against the highest yields.

Top of the billing is L4 covering the Anfield area, where the average property costs £108,244 and boasts an average rental yield of 6.6%.

Head over to nearby L3 in Vauxhall, where one of Thirlmere Deacon’s newest developments, Bastion Point is under construction on Naylor Street. With an expected yield of 8%-9%, this exceeds the current average rental yield of 6% in the general L3 area. Furthermore, L3 covers the world-famous Albert Docks, the Liverpool Metropolitan Cathedral and much of the city centre.

However, investors are advised to keep a keen eye on any of the above locations, especially since the rental yields have been double that of areas elsewhere within the Liverpool Metropolitan area in recent times.

**Data sourced from Property Data.

Liverpool property investment opportunities

There has been a lot of attention paid to the North West property market recently, and with lower than average entry rates combined with some truly fantastic yields, Liverpool should be high on the consideration of any investor, new or existing.

Here at Thirlmere Deacon, we have a number of existing and up-and-coming opportunities for your consideration in Liverpool.

As always, if you are interested in securing any of our opportunities, or have any further questions as an investor, please skip to the end of this post to find our contact information.

Bastion Point Liverpool

Area: L3 (Vauxhall)

Area average rental yield: 6%

Projected rental yield of opportunity: 8%-9%

Prices starting at: £189,950

Bastion Point Liverpool

Positioned in an unrivalled location in Liverpool City Centre, Bastion Point is one of the newest investment opportunities we have available here at Thirlmere Deacon.

Priced below the average property price in Liverpool starting at just £189,950, and with a projected rental yield that is set to outperform even the top areas of late, Bastion Point offers an unmissable opportunity for investors to secure their slice of the Liverpool investment market.

Liverpool is home to the fastest-growing city centre population in the UK, and numbers are expected to grow by a further 24% over the next five years. With equally strong student let and short term let markets in the city, Bastion Point could not be better positioned to capitalise on all the city has to offer both now, and in the future when several of its billion pound investments reach fruition.

Liverpool properties for sale – Investment opportunities starting at £189,950

Are you interested in purchasing a buy-to-let property in Liverpool? Here at Thirlmere Deacon, we have a number of exciting investment opportunities located across the UK and further afield, including here in Liverpool.

With our investment opportunities starting at just £189,950 in Liverpool paired against promising rental yields, not to mention record-breaking property price increases seen in recent times, now is the time to capitalise on a strong market by investing in one of our opportunities.

If you’d like any further advice on anything we’ve mentioned above, or if you are considering investing in one of our properties in Liverpool or beyond, please drop us a message or call us on +44 (0) 2039507939.

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