Guide to Investing in Buy-to-Let Property Investments in Liverpool
Property investment in Liverpool presents an enticing opportunity for investors looking to capitalize on the prestige and allure of this exclusive area of the North West.
Investing in buy-to-let properties can be a lucrative venture, and Liverpool, in particular, presents an excellent opportunity for both new and seasoned investors. This guide will help you understand why Liverpool is an attractive investment location in 2024, what types of properties are available, and key factors like rental yields and tenant demand.
Liverpool Buy to Let: A Wise Investment Choice
Growing Economy: Liverpool is experiencing a significant economic resurgence, driven by investments in infrastructure, technology, and the creative sectors. The Liverpool Waters project, among others, is transforming the city’s skyline and economy, attracting businesses and creating jobs. This economic growth translates into a higher demand for rental properties as more people move to the city for work.
Regeneration Projects: The city has seen extensive regeneration efforts over the past decade, with continued investments expected in 2024. Areas like the Baltic Triangle, Anfield, and the Knowledge Quarter are undergoing significant redevelopment, increasing property values and making them attractive locations for buy-to-let investors.
Education Hub: Liverpool is home to several major universities, including the University of Liverpool and Liverpool John Moores University. The student population ensures a steady demand for rental properties, particularly in areas close to the universities.
Cultural and Lifestyle Appeal: Liverpool’s rich cultural heritage, vibrant music scene, and renowned sports teams make it an appealing place to live. This cultural appeal attracts both domestic and international tenants, ensuring a diverse and constant demand for rental properties. This cultural appeal not only boosts the local economy but also adds to the city’s desirability as a place to live and invest.
Affordability and High Yields: Compared to other major UK cities like London and Manchester, Liverpool offers relatively affordable property prices while still providing high rental yields. This affordability makes it easier for investors to enter the market and achieve good returns on their investments.
Liverpool Buy to Let: Maximizing Returns
Overall, Liverpool’s combination of economic growth, affordable property prices, strong rental demand, and ongoing regeneration makes it a compelling location for property investment.
Liverpool is located in the northwest of England, along the eastern side of the River Mersey estuary. It is a significant port city with a rich maritime history and is part of the metropolitan county of Merseyside. Liverpool is approximately 220 miles (354 kilometres) northwest of London, and it is well-connected to other major cities like Manchester, which is about 35 miles (56 kilometres) to the east.
Types of Buy-To-Let Properties Available for Sale In Liverpool
City centre apartments in Liverpool are particularly popular among young professionals and students. Areas like the Baltic Triangle, Ropewalks, and the Waterfront stand out as desirable locations, offering modern living spaces within vibrant neighbourhoods that are well-connected and full of amenities.
Terraced houses are abundant throughout Liverpool, especially in areas such as Wavertree, Anfield, and Kensington. These properties are often more affordable and can provide good investment returns, especially when converted into Houses in Multiple Occupation (HMOs). Such conversions cater to the high demand from students and young professionals, making them a lucrative option for investors.
Detached and semi-detached houses are typically located in Liverpool’s suburban areas, including Allerton, Mossley Hill, and Childwall. These properties appeal primarily to families, offering longer-term tenancies. The suburbs are known for their good schools and green spaces, which attract a different demographic of tenants, often seeking a more settled and family-oriented lifestyle.
Student accommodation, specifically purpose-built student accommodation (PBSA), is a rapidly growing sector in Liverpool, driven by the city’s large student population. These properties are often fully managed, providing a hassle-free investment option for those looking to capitalize on the student rental market. PBSA offers a reliable income stream with less involvement from the investor, making it an attractive option for those focused on the student demographic.
Rental Yields in Liverpool
Liverpool is known for offering some of the highest rental yields in the UK. On average, rental yields in the city range between 6% to 8%, with some areas achieving even higher returns. For example:
- L1 (City Centre): Yields can reach up to 8%, thanks to the high demand from professionals and students.
- L7 (Edge Hill, Kensington): This area, close to the universities, offers yields of around 7-8%, making it popular with student landlords.
- L6 (Anfield, Everton): Regeneration in these areas has led to yields of around 7-8%, with properties still relatively affordable.
Tenant Demand in Liverpool
Tenant demand in Liverpool is robust, driven by several factors:
Growing Population: Liverpool’s population is steadily growing, with a young and diverse demographic. The influx of professionals and students creates sustained demand for rental properties across various types.
Student Population: The large student population is a significant driver of tenant demand. Areas near universities, such as the Knowledge Quarter and parts of Kensington, see consistent demand for rental properties.
Young Professionals: Liverpool’s expanding economy attracts young professionals, particularly in sectors like digital, technology, and creative industries. This group often prefers modern apartments in the city centre or close to key business districts.
Regeneration Areas: Areas undergoing regeneration, such as Anfield and the Baltic Triangle, are becoming increasingly popular with tenants, driving up demand and rental prices.
Map Of Liverpool Region
What are the Top 10 Postcodes In Liverpool based on the Property Value Growth?
In 2024, Liverpool will remain an attractive location for property investors, especially when looking at areas with the highest property value growth. Based on recent data from the Land Registry, here are some of the top postcodes in Liverpool that have seen significant property value growth:
- L4 – Anfield West: Property prices in this area rose by an impressive 58.5% in the past year. The average property price in 2022 was around £130,000. This growth is likely driven by ongoing regeneration efforts, particularly around Anfield Stadium.
- L5 – Everton West: This area experienced a 43.3% increase in property values, with average prices reaching approximately £132,450 in 2022. Everton West is benefiting from its proximity to both the city centre and ongoing regeneration projects.
- L15 – Wavertree West: Wavertree West saw a 27.8% rise in property prices, with average values around £127,825. This area is popular with both students and young professionals due to its proximity to universities and the city centre.
- L4 – Anfield East: Anfield East also saw substantial growth, with a 24.2% increase in property values, bringing the average price to about £100,000. Like Anfield West, this area benefits from ongoing local regeneration.
- L11 – Norris Green: This postcode saw a rise of around 20%, driven by new housing developments and increasing demand for affordable housing within close reach of the city centre.
- L7 – Edge Hill/Kensington: Property prices in this area have been climbing steadily due to its proximity to the universities and city centre, making it a hotspot for student accommodation and young professionals.
- L1 – City Centre: The L1 postcode continues to perform well with a rise in property values, driven by its central location and the appeal of city living. This area is particularly popular for apartments catering to young professionals and students.
- L18 – Allerton: Known for its suburban charm, Allerton has seen property values rise significantly, making it one of the more expensive areas in Liverpool. Its appeal to families and professionals has driven demand.
- L17 – Aigburth: Close to Sefton Park, this area is another that has seen strong property value growth, attracting both families and professionals looking for a mix of green space and city access.
- L6 – Kensington: Kensington’s proximity to the Knowledge Quarter and the city centre has made it a focal point for investors, especially those targeting the student rental market.
These postcodes represent some of the best opportunities for capital growth in Liverpool’s property market, driven by factors such as regeneration projects, proximity to amenities, and growing demand from both renters and buyers. We would like to thank LiverpoolWorld for the useful factual data our researchers have reviewed. Learn more about other related subjects such as the SSTC meaning or what the best way to invest £100K is in 2024 with our free guide.
Liverpool Property Investment Outlook
Investing in buy-to-let investment properties in Liverpool in 2024 presents a compelling opportunity for investors. The city’s growing economy, extensive regeneration projects, and strong cultural appeal contribute to its attractiveness as an investment location. With a variety of property types available, from city centre apartments to suburban houses, there are options to suit different investment strategies. The high rental yields and strong tenant demand further enhance Liverpool’s appeal, making it a top choice for buy-to-let investors looking for solid returns.
As Graham Wilson, Director of Cultural Policy Research at RCCIL, I would argue that investing in Liverpool’s property market presents a compelling opportunity, particularly as we look toward 2024. The city’s unique combination of economic resurgence, cultural vibrancy, and strategic development initiatives makes it an attractive proposition for both domestic and international investors.
Liverpool offers a unique combination of economic potential, cultural richness, and strategic investment opportunities that make it a prime location for property investment. The city’s ability to offer both high rental yields and strong prospects for capital growth underscores its position as a top choice for savvy investors in 2024 and beyond.
Recommended Liverpool City Guide
Fun Facts About Liverpool
Birthplace of The Beatles
Liverpool is famously known as the birthplace of The Beatles, one of the most influential bands in history. Fans from around the world visit landmarks like The Cavern Club, where the band played early gigs and The Beatles Story Museum.
UNESCO World Heritage Site
Liverpool’s waterfront was designated a UNESCO World Heritage Site in 2004 (though it was later delisted in 2021). The area is recognized for its stunning historic architecture, including the “Three Graces”—the Royal Liver Building, the Cunard Building, and the Port of Liverpool Building.
Football Legacy
Liverpool is home to two of England’s most famous football clubs: Liverpool FC and Everton FC. Liverpool FC has won multiple European and domestic titles, making it one of the most successful football clubs in the world.
Scouse Accent
The local accent, known as “Scouse,” is one of the most distinctive accents in the UK. It’s known for its unique pronunciation and vocabulary, which has been shaped by the city’s history as a melting pot of different cultures.
Liverpool’s Superlambanana
One of the city’s most quirky landmarks is the Superlambanana, a bright yellow sculpture that is a cross between a banana and a lamb. It was originally created as a commentary on the dangers of genetic engineering but has since become a beloved symbol of Liverpool.
Oldest Chinese Community in Europe
Liverpool is home to the oldest Chinese community in Europe. The city’s Chinatown is a vibrant area featuring the largest Chinese arch outside of China, a symbol of the strong ties between Liverpool and its Chinese community.
Titanic Connections
Liverpool has a strong connection to the Titanic. The ill-fated ship was registered in Liverpool, and the city was the home port of its owners, the White Star Line. Many of the crew members were from Liverpool, and the city has several memorials dedicated to the tragedy.
Guinness World Record for Eurovision
In 2023, Liverpool hosted the Eurovision Song Contest, and the event broke the Guinness World Record for the largest number of viewers watching the contest on a big screen, with a massive crowd gathering at the Pier Head.
Largest Anglican Cathedral in Britain
Liverpool is home to the Liverpool Cathedral, the largest Anglican cathedral in Britain and the fifth largest in the world. It took 74 years to complete and features the world’s highest and heaviest peal of bells.
Capital of Culture
In 2008, Liverpool was named the European Capital of Culture, a title that highlighted the city’s rich cultural heritage and helped boost tourism, leading to numerous cultural events and developments that continue to shape the city today.
Contact Us for Liverpool Property Investment
If you’re considering property investment in Liverpool, our experienced team is here to assist you. Contact us today to discuss your investment objectives and explore the prestigious opportunities available in this esteemed neighbourhood.